SINGLE-PUBBLICAZIONE

Action Policy Digest January 2020

Autore :

Data: 13-01-2020

Tipo: Other

Tematica: Action Institute

 

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

 Banks and government bonds: A love story. European banks have been criticised for holding too much domestic government debt during the recent Euro Area crisis, intensifying the doom loop between sovereign and bank credit risks. This column deviates from previous research that focused on ‘bad’ reasons for holding sovereign debt, and points to a ‘good’ reason: an informational advantage that particular banks have regarding sovereigns.

 Non-performing loans’ legacy versus secondary markets. Eleven years since the start of Europe’s financial crisis, and the legacy of non-performing loans in the EU, though much smaller, is still a prominent issue for some Member States.

 The curse of confidential supervisory information. Over the past few years, a number of scholars and practitioners have been shining light on the phenomenon of bank supervision—the workhorse of government efforts to influence the financial system.

INNOVATION AND DEVELOPMENT

 Bridging the divide: new evidence about firms and digitalisation. Small European firms are falling behind in the race to digitalise, but so are their American counterparts.
 Ranking 42 countries by ease of doing digital business. The World Bank’s annual Doing Business survey has been described by some as the “World Cup” or “Olympics” for governments competing to make their countries attractive to businesses.

EUROPEAN AFFAIRS

 The ECB after the crisis: Existing synergies among monetary policy, macroprudential policies and banking supervision. In 2012, European leaders decided to establish a pan-European supervisory authority at the European Central Bank, and in November 2014 direct banking supervision and an important role in financial stability were added to the monetary policy responsibilities of the central bank. This column examines what this has meant for the organisational structure and functioning of the ECB.
  The ECB is running out of policy space. The European Central Bank is running out of instruments for addressing persistent low inflation. In this paper, the authors assess if a fiscal policy expansion could help the ECB reach its target. Using ten mainstream models, the authors find only a modest and temporary impact of a fiscal deficit of 1% of GDP on inflation.

 “Impediments to resolvability of banks. This paper gives an overview of the seven aspects of resolvability defined in 2019 by the Single Resolution Board, and then assesses progress in two key areas, based on evidence gathered from public disclosures made by the 20 largest Euro Area banks.

SOCIAL POLICY

 Inequality and trade: Simulation evidence for 54 developing nations. Questions about who benefits from free trade – and at what cost – have resurfaced as part of the backlash against globalisation. This column uses data from 54 low- and middle-income countries to show that, in a majority of cases, trade liberalisation increases both incomes and inequality.

 “What is the EU’s role in implementation of the Global Compact for Migration?. This paper examines the controversies surrounding the adoption of the United Nations Global Compact on Migration (GCM) and their impacts on the European Union.

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 […]