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.
“Price and wage-setting in advanced economies: Selected takeaways from the ECB’s Sintra Forum“. In this column, two of the organisers of the ECB’s 2018 Sintra Forum on Central Banking highlight some of the main points from the discussions, including why measured economic slack did not translate into more vivid price and wage growth, which role inflation expectations play in the conduct of monetary policy, as well as where the challenges lie in reconciling changes in micro price-setting with aggregate inflation dynamics.
“The rise of ‘ethical’ investing“. We are used to think about the value of investment as measured by financial return. But investing with an eye to environmental or social issues and, more generally, ethical considerations, has become more prominent. The author review contributions to this debate.
“Cyber finance challenges demand a unified response“. The biggest opportunities and threats in finance these days come from the cyber-sphere. Blockchainand robo-advice are expected to revolutionise the ways banks interact with their clients and structure operations internally. The use of cryptocurrency has created a big controversy in central banking circles about the creation of a new form of money outside the classic institutions.
“The neutral rate of interest“. The neutral rate of interest is the short-term interest rate that would prevail when the economy is at full employment and stable inflation: the rate at which monetary policy is neither contractionary nor expansionary.
“The international use of the euro: What can we learn from past examples of currency internationalisation?“. The recent State of the Union speech by Jean-Claude Juncker sparked a discussion about the potential wider use of the Euro on the international stage. Historically, it is not the first debate of this kind. The author analyses four previous cases of debates on international currencies to reveal the different scenarios.
INNOVATION AND DEVELOPMENT
“The cost of data protectionism“. Countries are increasingly imposing new data policies which restrict both the domestic use of data and the flow of data across borders. This column uses an index of data policy restrictiveness for 64 major economies to demonstrate that restrictions that apply to the cross-border movement of data have an inhibiting effect on trade in services and, to a lesser extent, on the productivity of local companies and industries.
“Uptake of digital technologies in European industry: Poor, and uneven“. OECD study finds huge variation, by country and sector, in the use of digital technologies in business.
“The future of cryptocurrency regulation“. Despite attempts at regulation offered by governments around the world, the rise of cryptocurrencies remains a challenge. The U.S. approach to regulating the industry has been to work within its current laws rather than introduce new ones.
“A better European Union architecture to fight money laundering“. A series of banking scandals in multiple EU countries has underlined the shortcomings of Europe’s anti-money laundering regime. The impact of these shortcomings has been further underlined by changing geopolitics and by the new reality of European banking union. The authors here detail their plan for a new European unitary architecture, centred on a new European Anti-Money Laundering Authority.
“International capital flows at the security level – evidence from the ECB’s asset purchase programme“. The paper analyses euro area investors’ portfolio rebalancing during the ECB’s Asset Purchase Programme (APP) at the security level. Based on net transactions of domestic and foreign securities, the authors observe euro area sectors’ capital flows into individual securities, cleaned from valuation effects.
“EU launches €1B quantum megaproject in bid to leapfrog progress in the US and China“. It’s early days for full-scale quantum computers, but researchers claim there is an ‘immediate danger’ of Europe falling behind. ‘The heat is on – we have to react,’ says Jürgen Mlynek, chair of the project’s steering committee.
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 […]
Talent is a source from which water flows constantly renewed. But this source loses its value unless it is properly used.
Ludwig Wittgenstein […]