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Action Policy Digest April 2021

Autore : Action Institute

Data: 12-04-2021

Tipo: Other

Tematica: Action Institute

 

Hello, Action Policy Digest readers!
Organized as a monthly newsletter, it presents an overview of the current international policy debate. You find below a selection of the best ideas from the most influential think tanks, structured in four areas: (i) Finance, (ii) Innovation and Development, (iii) European Affairs and (iv) Social Policy.
 FINANCE 

 Can responsible investing encourage retail investors to invest in equities?“. The low participation of retail investors in the equity market is a concern for many countries. It is a necessary condition for the development of capital markets in Europe and a key factor for funding post-COVID economic recovery. (La bassa partecipazione degli investitori retail nel mercato azionario è una preoccupazione per molti paesi. È condizione necessaria per lo sviluppo dei mercati dei capitali in Europa e un fattore chiave per il finanziamento della ripresa economica post-COVID.)

 Low interest rates in Europe and the US: one trend, two stories“. Interest rates have been on a long-term decline, associated with declining productivity growth. To tackle this, the priorities are to reduce market concentration and, in Europe, change the financing model.

 Unstuffing banks with Fed deposits: Why and how“. US banks currently hold almost $4 trillion in Fed deposits, as a result of the ongoing balance sheet expansion by the Federal Reserve. This column proposes a simple, feasible, and mandate-consistent strategy to replace $3 trillion in deposits with Treasury bills.

 Non-performing loans – new risks and policies?“. In the past decade, asset management companies (AMCs) have been an effective tool for relieving banks of large portfolios of non-performing loans (NPLs). Managed over time, AMCs can reduce the financial burden on the overall system.

 INNOVATION AND DEVELOPMENT 

 The four pillars of a digital strategy“. The European Commission’s digital compass attempts to build strong fundamentals. It is a start. An ambitious digital agenda however requires a strategy that is all encompassing and coherent.

 Auditing employment algorithms for discrimination“. Algorithmic hiring systems are proliferating, and while some present opportunities to reduce systemic biases, others create new modes of discrimination.

 Information sharing and the geography of banking“. Digitalisation, FinTech, and the expansion of mobile banking have changed the way in which many banks operate on a day-to-day basis, including where they choose to have physical branches. This column explores the effect of digitalisation on the geography of banks.

 EUROPEAN AFFAIRS 

 Wealth distribution and social mobility“. This report explores the distribution of household wealth in the EU Member States and analyses the role of wealth in social mobility.

 New central banking calls for a European Credit Council“. Since 2008, a new central banking model has emerged. This column argues that the new practices of central banks call for an updated institutional framework in order to maintain democratic legitimacy. It proposes the creation of a European Credit Council, which would provide impartial assessments of the ECB’s decisions, particularly those with large distributional consequences.

 Circular Europe: Are Horizon’s missions a potential game-changer?“. One of the most discussed features of Horizon Europe has been the inclusion of five ‘moonshot’ missions. Yet mission-oriented innovation has been influencing another strategic EU policy area for several years: the transition to circular economy (CE).

 On selling sovereigns held by the ECB to the ESM“. A repetition of austerity policies of the early 2010s is not consistent with maintaining adequate growth and sovereign debt sustainability in the post-pandemic environment. Likewise, a debt restructuring process with deep haircuts will just upset the fragile state of the markets and create a run on the debt of the most vulnerable member states, forcing the ECB to buy even more debt.

 SOCIAL POLICY 
 The unequal inequality impact of the COVID-19 pandemic“. Less-educated workers have suffered most from job losses in the COVID-19 pandemic, and it is quite likely there was a significant increase in European Union income inequality in 2020.

Credit

Let me remind you that credit is the lifeblood of business, the lifeblood of prices and jobs.

Herbert Hoover […]

Health

Good health is essential to social and economical development and it empowers all of the public sectors.

World Health Organization […]

Innovation

Innovation is the specific instrument of entrepreneurship. The act that endows resources with a new capacity to create wealth.

Peter Drucker […]

Human Capital

Talent is a source from which water flows constantly renewed. But this source loses its value unless it is properly used.

Ludwig Wittgenstein […]