Action Policy Digest – July 2016

Autore :

Data: 11-07-2016

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.

Negative rates and seigniorage: Turning the central bank business model upside down – the special case of the ECB” (VOX). The business of central banks used to be profitable is to issue cash and then invest in the assets they liked. This column argues that the ECB has turned the old business model of central banks around.

Are central bank(er)s still credible?” (BRUEGEL). Since the financial crisis the Fed and the ECB credibility levels have evolved differently. The difference is the result of the different macroeconomic policy mix applied.

The real effects of shocks to bank balance sheets: Evidence from Italy during the Great Recession” (VOX). Negative shocks to bank balance sheets are problematic not just for financial markets. This column uses evidence on a bank liquidity shock in Italy in 2007-10 to show the impact on firms’ production, investment, and employment.

Did negative rates in Europe trigger massive cash hoarding?” (BROOKINGS). For a long time, economists believed that negative interest rates were close to impossible. This column argues that the ECB has turned the old business model of central banks around.

Fighting ‘currency wars’ with blanks: The limited role of exchange rates in export competitiveness” (VOX). In the ‘currency wars’ discussion, it is almost taken for granted that exchange rate depreciations will result in non-trivial export gains. This column argues that there are other factors that play a predominant role in shaping trade developments.


The breakdown of productivity diffusion” (BRUEGEL). The OECD has been pushing the idea that the productivity slowdown is not so much due to a lack of innovation but rather due to a lack of innovation diffusion between firms.

How mobile is tech talent? A case study of IT professionals based on data from LinkedIn” (CEPS). This report aims to produce new insights into how IT professionals move from one region to another within Europe. The study looks in detail at both the quantity and quality of the global interchange of IT professionals.

Joint programming in European science and technology policy” (VOX). European countries are increasingly coordinating their national research and development policies. This column discusses the problem of cross-subsidisation between participating countries.

Brexit fallout will damage ICT sector across Europe” (SCIENCEBUSINESS). Europe’s digital sector, already grappling with skill shortages and a lack of scale, is bracing itself for the Brexit hit. Entrepreneurs, investors and CEOs fear UK withdrawal will undermine competitiveness in the sector as a whole.


The UK/EU separation: how fast does it happen?” (BRUEGEL). Up until the British rebuff on 23 June 2016, the European Union had always been in expansion mode. The UK vote to leave the EU marks the first-ever case of this process being reversed.

Making the Eurozone more resilient: What is needed now and what can wait?” (VOX). Britain voted to leave the EU. This is terrible news for the UK, but it is also bad news for the Eurozone. This column identifies what needs to be done soon, and what should also be done but can probably wait if markets are patient.

The impact of Brexit on the EU” (CER). Brexit will weaken those forces in the EU that favour greater integration. It will also make Germany even more preponderant. Meanwhile the British face a lengthy and difficult negotiation for a new relationship – probably along lines of the ‘Canadian model’.


The greatest reshuffle of individual incomes since the Industrial Revolution” (VOX). The effects of of globalisation on income distributions in rich countries have been studied extensively. This column takes a different approach by looking at developments in global incomes from 1988 to 2008.

Rethinking asylum distribution in the EU: Shall we start with the facts?” (CEPS). All member states are required to provide Eurostat with data on immigration and asylum in accordance with a regulation. The purpose of the regulation is to ensure that the data on migration and asylum the member states provide to Eurostat for publication is comparable across all EU countries.


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

Herbert Hoover […]


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

World Health Organization […]


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 […]