Tuesday , October 22 2019
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Tag Archives: Uncategorized

Questions to the Competition Commissioner-designate

Commissioner Vestager has been given two portfolios; Executive Vice-President for a Europe fit for the Digital Age and Competition Commissioner. While having more than one portfolio may not be new, combining an important policy coordination function and an enforcement function is a novel approach. This raises a number of important questions related to how the objectives of either portfolio can be delivered cleanly. In her Mission Letters to Commissioner-designate, Margrethe Vestager, the...

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Fed rate cuts won’t help

Everyone has been obsessed with whether the Fed will cut rates and by how much, but the much more important question is: what’s the point? I argue that Fed rate cuts won’t help much: https://www.ft.com/content/b5f4f972-9342-11e9-8ff4-699df1c62544. For a shorter version of this argument, see my CNBC debate on the topic with Steve Liesman and Kelly Evans. https://www.cnbc.com/video/2019/07/22/heres-why-this-economist-thinks-a-rate-cut-might-be-pointless.html Share this...

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Fed shouldn’t use wages as beacon

For years, the US Federal Reserve steered monetary policy in part by wage growth: drive slack out of the labour market and higher wages, and therefore inflation, should follow. But fishing for inflation in this recovery, the Fed has been using the wrong bait, reading the water incorrectly and getting no bites. I look at why wages aren’t growing and why inflation wouldn’t accelerate even if they did: https://www.ft.com/content/821ee35c-a7a5-11e9-90e9-fc4b9d9528b4 Share...

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ECB has the biggest bazooka

When European Central Bank president Mario Draghi leaves his post in October, most analysts will say his greatest legacy was saving the euro. That’s nothing to sniff at, but years from now I think we will have discovered an even more important legacy: the ECB has created and implemented the biggest monetary policy bazooka out there and we should all look to adopt it in the next serious downturn: https://www.ft.com/content/58a4af28-80a1-11e9-a7f0-77d3101896ec Share this...

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Fiscal stabilizers are crucial

For all the focus on central banks to step in and fight the next downturn, there are tools outside of monetary policy that could be employed. In this Alphachat Podcast, I talk to Jay Shambaugh about fiscal stabilizers and why we should focus on establishing them now while times are good: https://www.ft.com/content/92dea877-1c35-4a98-b24f-9fb8b4d122ec Share this

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Personal News

Some personal news! I’ve recently started as a Senior Fellow at the Mossavar-Rahmani Center for Business and Government (M-RCBG) at the Harvard Kennedy School. I’ll spend the year doing a little teaching and a lot of writing (my regular Financial Times column, as well as a book). So far it has been fantastic, though if any of you have tips on cycling to work in Boston in the winter, I am all ears… Share this

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Five charts on European politics in 2018

To mark the end of 2018 we’ve compiled a list of five charts on some of the major stories from the last twelve months in European politics. In many EU states, wage growth has been lagging behind productivity growth over recent decades. Bela Galgoczi examined why wages and productivity – essential for a fair distribution of the spoils of economic growth – have increasingly decoupled from each other across European countries. Source: real compensation/worker, real productivity per worker...

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Deep Focus: Consequences of European Central Bank forecasting errors

Bruegel senior scholar Zsolt Darvas speaks about his review of systematic errors in ECB forecasting, in another instalment of the Deep Focus podcast on 'The Sound of Economics' channel In this episode of the Deep Focus, Sean Gibson speaks with Bruegel senior scholar Zsolt Darvas about his research on European Central Bank forecasting. Zsolt has analysed that, over the past five years, ECB forecasts have proven to be systematically incorrect: core inflation remained broadly stable at 1%...

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Economic policy challenges in Southern and Eastern Mediterranean

For a long time, southern and eastern Mediterranean countries struggled with serious socio-economic challenges and dysfunctional economic systems and policies. Marek Dabrowski reviews the challenges the region has to face to get out of a low growth trap. For a long time, southern and eastern Mediterranean countries (henceforth SEMC)[1] struggled with serious socio-economic challenges and dysfunctional economic systems and policies. In the 2010s their macroeconomic performance further...

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Deep Focus: Balancing distributional inequalities of climate policies

Bruegel fellow Georg Zachmann talks through a Bruegel Blueprint he has co-authored, looking into the potential distributional effects of climate policies, in another episode of the Deep Focus series. Climate change is is one of the big questions of this century, and mitigating its effects remains an enormous challenge. Decarbonisation will require a massive shift in our economies. Heating, transport, electricity and industry will have to be transitioned to a world without fossil fuels....

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