In evidenza

Can UBI Survive Financialization? (Project-Syndicate)

If a universal basic income is used primarily to service debt and secure new loans, it cannot fulfill its promise as a revolutionary pathway to freedom from the whip of the market. On the contrary, such a financialized UBI would simply leave citizens more indebted and dependent on rentier capital.

https://www.project-syndicate.org/commentary/ubi-financialization-debt-welfare-by-lena-lavinas-2019-06

Lena Lavinas, Professor of Welfare Economics at the Institute of Economics at the Federal University of Rio de Janeiro, is the author of The Takeover of Social Policy by Financialization: The Brazilian Paradox.

In evidenza

How voice technology will change your life (WEF)

The consumer world is being overhauled, from how we access products, services, content and education to how we build relationships, both with each other and with the world around us, how we engage with the devices that power our every day, how we live in our homes, and how we discover.

https://www.weforum.org/agenda/2019/06/how-voice-technology-will-change-your-life/

Robb Henzi – Vice President NY, sparks & honey, Omnicom Group

Oliver Wright – Managing Director, Strategy, Consumer Goods and Services, Accenture

In evidenza

3 ways to fight short-termism and relaunch Europe (WEF)

Short-termism is the excessive focus of decision-makers on short-term goals at the expense of longer-term objectives. Short-termism often has negative consequences: recent research confirms that corporate executives would delay or sacrifice projects creating durable value in order not to miss short-term earnings targets. Immediate gains provide a strong incentive to executives to postpone or cancel long-term capital expenditure.

https://www.weforum.org/agenda/2019/06/3-ways-to-fight-short-termism-and-relaunch-europe/

Philippe Roger Donnet – Chief Executive, Generali

In evidenza

What brands get wrong about China – and how to put it right (WEF)

In April, Burger King was forced to pull a promotional video it had aired in New Zealand following an angry reaction from consumers living 11,000km away.

Ruby Chui – Partner, Brandnographer
Lyra Jiang – Research Lead, Brandnographer
In evidenza

Door will only open wider to foreign companies: FM (Global Times)

China’s Foreign Ministry on Monday denied allegations that the Chinese government has threatened to retaliate against companies from the US and the UK over their decisions to cut supplies to Chinese telecom company Huawei, saying that China’s door will open only wider to foreign businesses.

http://www.globaltimes.cn/content/1153783.shtml

In evidenza

Banning Huawei may jeopardize Africa’s digital future (Global Times)

A ban on buying telecoms equipment from Chinese firms would add about $62 billion to the cost of 5G networks in Europe, according to a Reuters report. For the US and European countries, launching a technological cold war and blacklisting Huawei may only hurt profits, but for Africa, such a move may impoverish the continent for a much longer time.

http://www.globaltimes.cn/content/1153784.shtml

By Li Qingqing

In evidenza

China’s future rests in its people’s resolve (Global Times)

I am a very ordinary Chinese. Although I am the editor-in-chief of a market-oriented newspaper, I am not an “official,” but a workman who writes articles and produces a bunch of audio-video products every day. Colleagues know that I am a typical manual worker who often struggles to read the manuscript when tired after doing the last audio in the middle of the night.

http://www.globaltimes.cn/content/1153775.shtml

By Hu Xijin

In evidenza

Trade war will deepen mainland-HK economic link (Global Times)

Vietnam is likely to be the biggest winner from the shift in supply chains caused by the trade war between China and the US. The reorganization of the Asian industrial chain provides Hong Kong with an opportunity to renew its role as a middleman to the Chinese mainland’s economy.

http://www.globaltimes.cn/content/1153754.shtml

By Hu Weijia

In evidenza

US may escalate trade war in six ways (Global Times)

First, let’s take a look at the “superficial” reasons behind China’s trade war with the US. There was no mention of “superficial” when I talked about the trade war last year, but it now seems necessary to put it into context. There are three superficial reasons why the US is launching a trade war with China. First, China has a large trade surplus with the US. Second, China hasn’t honored its WTO commitments. Third, China has gained US technologies through unfair means. These are major complaints filed by the US.

http://www.globaltimes.cn/content/1153641.shtml

In evidenza

Envoy says US set to paralyze INSTEX to thwart European diplomacy (IRNA)

Iranian ambassador to the UK Hamid Baeidinejad warned on Tuesday that US will paralyze the Instrument in Support of Trade Exchanges (INSTEX) by adopting counter-measures in a bid to thwart the EU diplomacy.

https://en.irna.ir/news/83348036/Envoy-says-US-set-to-paralyze-INSTEX-to-thwart-European-diplomacy

 

In evidenza

Envoy: Over 500 Iran exports goods to Eurasia enjoying preferential tariff (IRNA)

Iranian Ambassador to Moscow referred to ratification of agreement on creating free trade zone between Iran and Eurasian Economic Union in Iran parliament, saying over 500 exports goods to Eurasia are enjoying preferential or zero tariff.

https://en.irna.ir/news/83347947/Envoy-Over-500-Iran-exports-goods-to-Eurasia-enjoying-preferential

In evidenza

Energy first priority of Russia-Iran cooperation: Russian Official (IRNA)

Russia’s Commercial Attaché to Iran said energy is the priority for mutual cooperation between Iran and Russia, and this cooperation will continue vigorously without being affected by external influence.

https://en.irna.ir/news/83347750/Energy-first-priority-of-Russia-Iran-cooperation-Russian-Official

In evidenza

5th Int’l Symposium on Water, Dams of Asia-Pacific Group to be held in Iran (IRNA)

The 5th International Symposium on Water and Dam of the Asia-Pacific Group, in collaboration with universities, research centers, consulting engineering companies and contractors of Iran’s dam construction industry will be held on December 10-11 hosted by the National Dams Committee.

https://en.irna.ir/news/83347578/5th-Int-l-Symposium-on-Water-Dams-of-Asia-Pacific-Group-to-be

In evidenza

Tech companies are changing, for the better (World Economic Forum)

For a long time, social impact was an add-on, or nice to have. In the 1990s and 2000s, it seemed enough for a company to have a corporate social responsibility program and do some good, typically in their geographic backyard.

https://www.weforum.org/agenda/2019/06/tech-companies-are-changing-for-the-better/

Tilman Ehrbeck – Managing partner, Flourish Ventures

In evidenza

FM: Qatar Gov’t will do whatever it can for de-escalation in region (IRNA)

Qatari Foreign Minister Mohammed bin Abd al-Rahman ath-Thani said that the Qatari Government and some other countries will do whatever it can for de-escalation between Iran and the US to serve stability in the region.

https://en.irna.ir/news/83346425/FM-Qatar-Gov-t-will-do-whatever-it-can-for-de-escalation-in

 

In evidenza

Seoul urges lifting US sanctions on Iran and South Korean firms (IRNA)

The South Korean Economy and Finance Minister Hong Nam-ki in a meeting with his American counterpart called for lifting US sanctions on South Korean firms doing business with Iran.

https://en.irna.ir/news/83346366/Seoul-urges-lifting-US-sanctions-on-Iran-and-South-Korean-firms

In evidenza

Mahathir’s tilt to China smooths the way for Beijing in Southeast Asia (The Interpreter)

Always known as a fiercely non-aligned leader, Malaysia’s
Prime Minister has changed his tune on the Belt and Road.

https://www.lowyinstitute.org/the-interpreter/mahathir-s-tilt-china-smooths-way-beijing-southeast-asia

SHANKARAN NAMBIAR

In evidenza

Saudi Religious Moderation: How Real Is It? (BESA Center)

Saudi Crown Prince Muhammad bin Salman is determined to promote an image of himself as a harbinger of Saudi religious moderation, but many observers suspect that the changes he has implemented are only skin-deep. His reforms may turn out to have more to do with public relations than with fundamental change.

https://besacenter.org/perspectives-papers/saudi-religious-moderation/

By

In evidenza

Iran Is Too Smart to Go to War (WEF)

If the Iranians have their way and are able to control the level of the flames, they will make sure that tensions with the US fall short of war due to the massive disparity in military capability and lack of mutual vulnerability. A Hezbollah attack on Israel in such a scenario would lead to Hezbollah’s destruction, a result Tehran would prefer to avoid.

https://besacenter.org/perspectives-papers/iran-escalation-war/

In evidenza

5 futuristic ways to fight cyber attacks (WEF)

People today are increasingly reliant on smartphones, smart speakers and other gadgets. Most can’t imagine going more than a few hours without using a computer, and some of them spend most of their work days sitting in front of one. This shift towards a tech-centric culture means people are at a much higher risk of cyberattacks.

https://www.weforum.org/agenda/2019/06/5-futuristic-ways-to-fight-cyber-attacks/

Kayla Matthews – Freelance journalist

In evidenza

It’s time for cybersecurity to go pro bono (WEF)

As asylum seekers and other vulnerable people are required to give up more and more of their personal information to agencies charged with protecting them, the human rights organizations that work to help such populations become targets of cyberattacks themselves.

https://www.weforum.org/agenda/2019/06/it-s-time-for-cybersecurity-to-go-pro-bono/

Daniel Dobrygowski – Head of Governance and Policy, Global Centre for Cybersecurity, World Economic Forum

In evidenza

What Keynes can teach us about government debt today (WEF)

John Maynard Keynes, the British economist whose theories dominated the industrial postwar West, argued for government spending as a means to counteract slow economic growth. Especially during a recovery from a recession or depression, he reasoned, private demand is insufficient, so extra spending by government is needed to ensure that aggregate demand remains high enough to maintain full employment. But what would Keynes have made of the debate over governments borrowing to invest in times outside acute crises or recession?

https://www.weforum.org/agenda/2019/06/keynes-john-maynard-economics-government-spending/

Linda Yueh – Oxford and London Business School economist

In evidenza

Sweden has invented a word to encourage people not to fly. And it’s working (WEF)

Sweden’s departure lounges are looking less crowded as more Swedes are deciding to take the train rather than fly.

https://www.weforum.org/agenda/2019/06/sweden-has-invented-a-word-to-encourage-people-not-to-fly-and-it-s-working/

Douglas Broom – Senior Writer, Formative Content

In evidenza

10 facts about air pollution on World Environment Day (WEF)

Nobody is safe from air pollution, the United Nations warned on World Environment Day, with nine out of 10 people on the planet now breathing polluted air.

https://www.weforum.org/agenda/2019/06/10-facts-about-air-pollution-on-world-environment-day/

Megan Rowling – Journalist, Thomson Reuters Foundation

In evidenza

China-Russia relations transcend geopolitics (Global Times)

Chinese President Xi Jinping arrived in Russia Wednesday for a state visit. China and Russia agreed to upgrade their relations to a comprehensive strategic partnership of coordination for a new era. This is a major event in China-Russia relations. During Xi’s trip, the two countries are expected to reach achievements in expanding mutual cooperation.

http://www.globaltimes.cn/content/1153263.shtml

In evidenza

The EU needs an effective common arms export policy (Centre for European Reform)

The EU’s strategic interests and credibility are harmed by its ineffective and incoherent approach to arms export policy.

https://www.cer.eu/publications/archive/bulletin-article/2019/eu-needs-effective-common-arms-export-policy

Sophia BeschBeth Oppenheim

In evidenza

The European Parliament elections: no grounds for complacency (Centre for European Reform)

Despite media hype about a eurosceptic takeover, pro-EU forces held their ground in the European Parliament. But EU leaders cannot be complacent about the results of these European Parliament elections.

https://www.cer.eu/publications/archive/bulletin-article/2019/european-parliament-elections-no-grounds-complacency

Agata Gostyńska-Jakubowska

In evidenza

Competition policy in the 21st century: size isn’t everything (Centre for European Reform)

France and Germany have proposed laxer EU merger control to help European companies compete with Chinese firms. But competition has been waning within the EU, and stronger merger rules may be needed.

https://www.cer.eu/publications/archive/bulletin-article/2019/competition-policy-21st-century-size-isnt-everything

John Springford

In evidenza

The US Economy’s Dirty Secret (Project-Syndicate)

Relatively strong US growth amid sluggishness elsewhere is not what economics textbooks would predict. But persistently low interest rates and weak inflation bring multiple benefits to American firms and consumers, while the adverse impact of the global slowdown on US exports should not be overstated.

https://www.project-syndicate.org/commentary/american-growth-global-slump-interest-rates-by-todd-g-buchholz-2019-06

Todd G. Buchholz has served as director of economic policy under President George H.W. Bush and as managing director of the Tiger hedge fund. He was awarded Harvard University’s Allyn Young Teaching Prize in economics and is the author of New Ideas from Dead Economists and The Price of Prosperity.

In evidenza

Britain’s Renewal After Trump and Brexit (Project-Syndicate)

US President Donald Trump’s long-postponed state visit to the United Kingdom has now come and gone. He leaves in his wake a Britain that is consumed not only by a stalled Brexit and the unending debate about it, but also by a far more profound crisis of identity that Brexit has exposed and aggravated.

https://www.project-syndicate.org/commentary/britain-renewal-reclaim-national-identity-by-gordon-brown-2019-06

Gordon Brown, former Prime Minister and Chancellor of the Exchequer of the United Kingdom, is United Nations Special Envoy for Global Education and Chair of the International Commission on Financing Global Education Opportunity. He chairs the Advisory Board of the Catalyst Foundation.

In evidenza

Financing Climate-Smart Investment in Africa (Project-Syndicate)

At a time when climate change is making catastrophic weather events more common, boosting resilience in developing countries has become imperative. Success will depend largely on mobilizing private investment in climate-smart projects.

https://www.project-syndicate.org/commentary/green-bonds-ifc-climate-resilience-by-alzbeta-klein-2019-06

Alzbeta Klein is Director and Global Head of Climate Business at the International Finance Corporation.

In evidenza

As Populists Rise, Latin America’s Economies Will Fall (Project-Syndicate)

In the space of a year, populists with autocratic tendencies have taken office in Mexico and Brazil, and laid the groundwork to return to power in Argentina. With the three largest economies in Latin America destined for further mismanagement, the prospects for growth in the region are dim.

https://www.project-syndicate.org/commentary/populism-sinking-latin-america-economies-by-kenneth-rogoff-2019-06

Kenneth Rogoff, Professor of Economics and Public Policy at Harvard University and recipient of the 2011 Deutsche Bank Prize in Financial Economics, was the chief economist of the International Monetary Fund from 2001 to 2003. The co-author of This Time is Different: Eight Centuries of Financial Folly, his new book, The Curse of Cash, was released in August 2016.

In evidenza

Pakistan military agrees to budget cut amid economic woes, PM says (Al Arabiya)

Pakistan’s powerful military has agreed in a rare move to cut its hefty budget for a year to help ease the South Asian country’s “critical financial situation”, Prime Minister Imran Khan said.

https://english.alarabiya.net/en/business/economy/2019/06/05/Pakistan-military-agrees-to-budget-cut-amid-economic-woes-PM-says.html

In evidenza

China fines Ford joint venture, citing anti-monopoly law (Al Arabiya)

China on Tuesday imposed a $23.6 million fine on US automaker Ford’s joint venture for “price fixing” in violation of anti-monopoly laws, a move coinciding with growing trade tensions with the United States.

https://english.alarabiya.net/en/business/economy/2019/06/05/China-fines-Ford-joint-venture-citing-anti-monopoly-law.html

In evidenza

World Bank downgrades its forecast for global economy (Al Arabiya)

The World Bank on Tuesday downgraded its forecast for the global economy in light of trade conflicts, financial strains and unexpectedly sharp slowdowns in wealthier countries.

https://english.alarabiya.net/en/business/economy/2019/06/05/World-Bank-downgrades-its-forecast-for-global-economy.html

In evidenza

President: Iran after enhancing regional security (IRNA)

Iranian President Hassan Rouhani described threats, pressures, economic blockade and sanctions in the relations among world government as a wrong and non-diplomatic path, and said that Iran is after fostering security in the region.

https://en.irna.ir/news/83341957/President-Iran-after-enhancing-regional-security

In evidenza

Rouhani: Strategic patience foils US anti-JCPOA plots (IRNA)

Iranian President Hassan Rouhani said the strategic patience of the Iranian people and system foiled the US plots with regard to pulling out of the nuclear deal known as the Joint Comprehensive Plan of Action (JCPOA).

https://en.irna.ir/news/83341934/Rouhani-Strategic-patience-foils-US-anti-JCPOA-plots

In evidenza

Iraq not to remain silent in face of US anti-Iran sanctions: Hakim (IRNA)

Leader of the National Wisdom Movement of Iraq Seyyed Ammar Hakim, rejected the US unilateral sanctions against the Iranian people and said that Iraq would not remain silent or impartial in the face of the US pressures and sanctions against Iran.

https://en.irna.ir/news/83341838/Iraq-not-to-remain-silent-in-face-of-US-anti-Iran-sanctions

In evidenza

Leader: Bahrain, Saudi rulers in quag for betraying Palestinians (IRNA)

The Supreme Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei said the Saudi Arabia and Bahrain rulers have landed themselves in a quagmire by betraying the Palestinian nation.

https://en.irna.ir/news/83341696/Leader-Bahrain-Saudi-rulers-in-quag-for-betraying-Palestinians

In evidenza

Official hopes Japanese PM’s visit to Tehran would reduce tensions in region (IRNA)

Iran’s Deputy Foreign Minister Abbas Araqchi expressed the hope that Japan’s Prime Minister Shinzo Abe’s upcoming visit to Tehran would lead to reduction in tensions in the region.

https://en.irna.ir/news/83341470/Official-hopes-Japanese-PM-s-visit-to-Tehran-would-reduce-tensions

In evidenza

Xi says China to foster stronger synergy of development initiatives with Russia (Global Times)

China is ready to work with Russia to foster stronger synergy of the Belt and Road Initiative (BRI) and the Eurasian Economic Union (EAEU), Chinese President Xi Jinping told Russian media on Tuesday.

http://www.globaltimes.cn/content/1153163.shtml

In evidenza

Changan Ford fined $23.6m for violating antitrust rules in China: report (Global Times)

Changan Ford, a joint venture between the US automaker Ford Motor Co and China’s Changan Automobile, was fined by Chinese regulators for violating antitrust regulations, sparking a strong response from Chinese netizens in support of its decision.

http://www.globaltimes.cn/content/1153182.shtml

In evidenza

World Bank lowers 2019 global growth forecast, maintains projection for China (Global Times)

The World Bank on Tuesday lowered its global growth forecast for 2019 to 2.6 percent, while maintaining its growth projection for China at 6.2 percent, according to the newly released semi-annual Global Economic Prospects report.

http://www.globaltimes.cn/content/1153174.shtml

In evidenza

China to make full use of rare-earth card in containing US: analysts (Global Times)

The US Department of Commerce (DOC) released a report Tuesday, stating that the US government departments will coordinate in policies to foster domestic supplies of rare earth minerals so that its crucial industries won’t be disrupted by a cut-off of supplies.

http://www.globaltimes.cn/content/1153154.shtml

In evidenza

Tesla’s new discount policy in Beijing draws concerns over legality on Chinese social media (Global Times)

Tesla announced on Tuesday that it has launched a three-year interest-free financing service for car purchasers in Beijing, while also allowing consumers in the capital to rent license plates for free for up to three years.

http://www.globaltimes.cn/content/1153144.shtml

In evidenza

Hollow claims by US on caring about Chinese human rights (Global Times)

US Secretary of State Mike Pompeo made a statement on Monday in which he accused China of “abusing human rights” and smeared China’s resolute measures to maintain national stability in the late 1980s. He also criticized China’s governance in the Xinjiang Uyghur Autonomous Region. The US has stepped up its attacks on China on human rights issues simply because Washington’s trade war with China is proving to be invalid. Now, the US has decided to impose more pressure on China over human rights issues.

http://www.globaltimes.cn/content/1153165.shtml

In evidenza

China-Russia synergy drives regional stability (Global Times)

China-Russia relations are cordial in all respects. The comprehensive strategic partnership of coordination between the two countries runs deep and has made substantial progress in recent years. The upcoming visit of Chinese President Xi Jinping to Russia will further consolidate the friendship between the neighbors.

http://www.globaltimes.cn/content/1153153.shtml

The article was compiled by Global Times reporter Xu Hailin based on an interview with Yang Mian, a professor at the Institute of International Relations of the Communication University of China

In evidenza

US, UK will both pay price for blocking Huawei in 5G (Global Times)

Several days before US President Donald Trump’s long-delayed state visit, 5G finally landed in the UK. Last week, the BBC held the country’s first live 5G broadcast with Huawei equipment, although it got off to a bumpy start because the SIM card used for the trial ran out of data.

http://www.globaltimes.cn/content/1153127.shtml

By Hu Weijia

In evidenza

Google and Amazon Are at the Center of a Storm Brewing Over Big Tech (The New York Times)

Google and Amazon have thrived as American regulators largely kept their distance. That may be changing.

https://www.nytimes.com/2019/06/02/business/google-antitrust-investigation.html

By Cecilia KangDavid StreitfeldKatie Rogers and Stephanie Saul

In evidenza

What Facebook Can Do to Avoid Regulation (Bloomberg)

To prove they aren’t biased, the tech titans have to be more open about their decision-making.

https://www.bloomberg.com/opinion/articles/2019-06-03/facebook-can-keep-immunity-and-avoid-regulation?utm_campaign=socialflow-organic&utm_content=business&cmpid=socialflow-twitter-business&utm_medium=social&utm_source=twitter

By 

In evidenza

Our Shared Humanity: Global Market, Global Values (Chatham House)

Kofi Annan saw development as fundamental to human dignity and freedom.

https://www.chathamhouse.org/file/our-shared-humanity-global-market-global-values

Strive Masiyiwa, Board Chair, AGRA; CEO, Econet Wireless
Claire Melamed, CEO of the Global Partnership for Sustainable Development Data
Mark Suzman, Chief Strategy Officer and President of Global Policy and Advocacy, Bill & Melinda Gates Foundation
Chair: Sam Daws, Director, UN Reform Project, University of Oxford

In evidenza

Our Shared Humanity: The Arc of Intervention (Chatham House)

From Bosnia to the Brahimi Report and from Rwanda to R2P, Annan played a significant role in many critical moments that shaped approaches to peacekeeping and to the protection of civilians. What was the impact?

https://www.chathamhouse.org/file/our-shared-humanity-arc-intervention

Lakhdar Brahimi, The Elders; Chair, Panel on United Nations Peace Operations (2000)
Comfort Ero, Africa Program Director, International Crisis Group
Ian Martin, Special Representative of the UN Secretary-General in East Timor (1999), Nepal (2007-9) and Libya (2011-2)
Chair: Michael Keating, Executive Director, European Institute of Peace

In evidenza

Our Shared Humanity: Cool and Reasoned Judgement (Chatham House)

Reflecting on how Kofi Annan’s personality and values influenced his approach to managing crises and on the role of the UN Secretary-General in crisis management generally.

https://www.chathamhouse.org/file/our-shared-humanity-cool-and-reasoned-judgement

Kathy Calvin, President and CEO, United Nations Foundation
Nader Mousavizadeh, Co-founder, Macro Advisory Partners
Chair: Alec Russell, Editor, FT Weekend

In evidenza

Mexico’s Hydra-headed Crime War (International Crisis Group)

It may seem that Mexico’s crime war, which has left over 100,000 dead in its wake, could not get any worse. But interviews with gunmen in deadly Tierra Caliente show that it can, as criminal organisations break into smaller and smaller parts, driving up the death toll.

https://www.crisisgroup.org/latin-america-caribbean/mexico/mexicos-hydra-headed-crime-war

Falko Ernst

In evidenza

The End of the World As We Know It (Project-Syndicate)

fischer157_FotografiaBasicaGettyImages_USChinaflagsseparatedottedline

https://www.project-syndicate.org/commentary/us-china-break-europe-by-joschka-fischer-2019-06

Joschka Fischer was German Foreign Minister and Vice Chancellor from 1998-2005, a term marked by Germany’s strong support for NATO’s intervention in Kosovo in 1999, followed by its opposition to the war in Iraq. Fischer entered electoral politics after participating in the anti-establishment protests of the 1960s and 1970s, and played a key role in founding Germany’s Green Party, which he led for almost two decades.

In evidenza

China’s New World Media Order (Project-Syndicate)

kaixi2_ZhangPengLightRocketviaGettyImages_chinesemetrotravelersoncellphones

https://www.project-syndicate.org/commentary/china-press-freedom-attack-democracy-by-wu-er-kaixi-and-christophe-deloire-2019-06

Christophe Deloire is Secretary-General of Reporters Without Borders, known internationally as Reporters sans frontières (RSF).

Wu’er Kaixi, a member of the Reporters Without Borders (RSF) Emeritus Board, was a leader of the Tiananmen Square protest in 1989.

In evidenza

Chinese FM holds phone talk with French president’s diplomatic counselor (Global Times)

China and France should well implement the consensus reached between their leaders, Chinese State Councilor and Foreign Minister Wang Yi said over a phone conversation on Monday with Emmanuel Bonne, diplomatic counselor to French President Emmanuel Macron.

http://www.globaltimes.cn/content/1153013.shtml

In evidenza

US should heed China’s student warning

China’s Ministry of Education (MOE) warned on Monday of the risk of applying to study in the US after some Chinese students were hit with visa limits and rejections. The ministry reminded students and scholars to enhance risk assessment, strengthen awareness of prevention and make corresponding preparations before going to study abroad.

http://www.globaltimes.cn/content/1153004.shtml

In evidenza

How to design the European Deposit Insurance Scheme

Much of financial regulation has been focusing on adequately pricing risk taking by lenders. This column argues that a multinational deposit insurance system such as the proposed European Deposit Insurance Scheme has important advantages, but can also create conflicts among its member nations due to potential deposit insurance subsidies that differ across nations. The authors suggest alternative design features that could minimise these subsidies and make a multinational deposit insurance system more mutually agreeable.

https://voxeu.org/article/how-design-european-deposit-insurance-scheme

Esa Jokivuolle, George G. Pennacch

VOX

In evidenza

Trade war: The clash of economic systems threatening global prosperity: A new eBook

As a trade war of unprecedented scope and magnitude engulfs the world’s two largest economies, this column introduces a new Vox eBook that seeks to shed light on the origins of the conflict, the current impacts on economic activity around the world, and the likely consequences for the future of globalisation. It concludes that the prospects for the future of the multilateral trading system look grim.

https://voxeu.org/article/trade-war-clash-economic-systems-threatening-global-prosperity-new-ebook

Meredith A. Crowley

VOX

In evidenza

The costs and benefits of performance fees in mutual funds

Performance fee-based contracts, which aim to align the interests of the fund manager with that of the investor, have been controversial in mutual funds markets, and are once again under review in Europe. This column presents empirical evidence showing that performance fee contracts do not improve fund performance, particularly in instances where contracts fail to specify a benchmark for results.

https://voxeu.org/article/costs-and-benefits-performance-fees-mutual-funds

Henri Servaes

VOX

In evidenza

Fiscal destruction: Confiscatory taxation of Jewish property and income in Nazi Germany

Germany’s Jewish population share in 1933 was less than 1%. Nevertheless, Nazi propa­gan­da believed in the existence of fabulous riches, with some estimates rising as high as 20% of national wealth. This column uses taxation data collected for the Allied military govern­ments after 1945 to revisit these claims. Under plausible assumptions, the Jewish-owned share of Germany’s private real capital stock broadly matched the population share, with an upper-bound estimate of 1.6%.

https://voxeu.org/article/confiscatory-taxation-jewish-property-and-income-nazi-germany

Albrecht Ritschl

VOX

In evidenza

£350 million a week: The output cost of the Brexit vote

It is hard to calculate the current cost of Brexit, because there is no obvious counterfactual. The original version of this column, first published in November 2017, calculated the cost by letting a matching algorithm determine which combination of comparison economies best resembles the pre-referendum growth path of the UK economy. The results suggested a loss of 1.3% of GDP, or close to £300 million per week, since the vote took place. Subsequent updates using the latest OECD data suggest that the negative drag from the Brexit vote now appears to be roughly £350 million a week, but under current OECD forecasts we can expect the output loss to increase to about 4% of GDP by end-2020.

https://voxeu.org/article/300-million-week-output-cost-brexit-vote

Benjamin Born, Gernot Müller, Moritz Schularick, Petr Sedláček

VOX

In evidenza

Export-led growth in Central and Eastern Europe

Fragmentation of production has made it difficult to assess the contribution of exports to economic growth. This column decomposes growth into value added absorbed at home and that exported. Empirical results show that economic growth in Central and East European countries after 1995 was mainly driven by exports. The pace of convergence in Europe for exported value added was around four times faster than for domestic value added.

https://voxeu.org/article/export-led-growth-central-and-eastern-europe

Jan Hagemejer, Jakub Mućk

In evidenza

Measuring performance of JCPOA’s members

US withdrawal from Iran’s nuclear deal, also known as Joint Comprehensive Plan of Action (JCPOA), is a test to measure the commitment of remaining members vis-à-vis the JCPOA; a test that Russia and China have so far been better than the European Troika.

https://en.irna.ir/news/83332947/Measuring-performance-of-JCPOA-s-members

IRNA

In evidenza

Huawei row mirrors pernicious American traits

In an interview Wednesday with Fox Business network, US Secretary of State Mike Pompeo said Huawei’s ties to the Communist Party of China (CPC) pose the biggest threat to the US economy and national security. Pompeo is trying to stoke public outrage in the US over the Huawei issue. Washington’s “target campaign” of Chinese high-tech companies has exacerbated the Sino-US conflict, turning it into a deeper crisis between the two countries, far beyond the rumblings of a trade war.

http://www.globaltimes.cn/content/1152338.shtml

Global Times

In evidenza

Capricious appointments create US policy confusion

The disconnect between US President Donald Trump and John Bolton, his national security adviser, has flooded into the public realm in recent days, making the world more confused about US foreign policy. The capricious version of President Trump seems to be making a comeback.

http://www.globaltimes.cn/content/1152247.shtml

By Xu Hailin

Global Times

In evidenza

Continuity, not change, expected from Modi 2.0

On May 23, the marathon general elections in India ended with the BJP-led National Democratic Alliance (NDA) winning a landslide victory in the Lower House of the Indian parliament. Pulwama attack helped reset the campaign agenda. Before the incident, the electoral discourse was about economic policies such as demonetization and GST reforms and the job market.

http://www.globaltimes.cn/content/1152254.shtml

Global Times

In evidenza

US moves like a witch hunt for China

China-US ties have recently been troubled. This time Washington has introduced a host of damaging policies in fields such as technology and education, which adversely affect bilateral relations. The latest example is the expulsion of two Chinese neuroscientists from Emory University in Atlanta and the deportation of four postdoctoral students working in their lab from the US.

http://www.globaltimes.cn/content/1152216.shtml

Global Times

In evidenza

Fed’s unpredictably ‘Trumpish’ monetary policy brings uncertainty to global market

Despite the calls for lower interest rates, US Federal Reserve Chairman Jerome Powell recently indicated that the Fed will remain cautious and keep rates steady for some time. It seems it has become more difficult for the market to predict the future economic situation and monetary policy. The Fed appears to be more and more “Trumpish” in setting monetary policy. Just like US President Trump, the central bank has become unpredictable, succumbing to political and capital market pressure due to its weakening role as an independent decision-maker over monetary policy.

http://www.globaltimes.cn/content/1152255.shtml

Global Times

In evidenza

European cohesion and the Visegrád group: The importance of hearts and minds

Where structural cohesion increases but individual cohesion declines, Euroscepticism can still thrive. The Visegrad countries need to invest in people’s European experiences.

https://www.ecfr.eu/article/commentary_european_cohesion_visegrad_group_importance_of_hearts_minds

Oľga Gyárfášová

European Council on Foreign Relations

In evidenza

Mapping armed groups in Mali and the Sahel

Violence is tearing Mali and the Sahel apart. But who are the armed groups behind the bloodshed? Where are international actors stationed in the region? And what motivates them all? This project maps jihadist and non-jihadist groups and pinpoints the presence of external actors in the region as of May 2019.

https://www.ecfr.eu/mena/sahel_mapping

European Council on Foreign Relations

In evidenza

Japan’s Government Must Exit Coal

Japan is a global investment giant and a prominent member of the international community. In the run-up to next month’s G20 summit in Osaka, it should shake itself free from entrenched lobby groups and establish itself as a world leader in the shift away from coal and toward renewables.

https://www.project-syndicate.org/commentary/japan-government-coal-renewables-by-jan-erik-saugestad-2019-05

Jan Erik Saugestad is CEO of Storebrand Asset Management.

Project-Syndicate

In evidenza

Making “Generation Educated” a Reality

Year after year, the international community falls further behind in upholding its commitment to provide quality education to all children by 2030. With the number of out-of-school children having far surpassed crisis levels, it’s time to adopt a new approach.

https://www.project-syndicate.org/commentary/education-aid-funding-facility-by-gordon-brown-2019-05

Gordon Brown, former Prime Minister and Chancellor of the Exchequer of the United Kingdom, is United Nations Special Envoy for Global Education and Chair of the International Commission on Financing Global Education Opportunity. He chairs the Advisory Board of the Catalyst Foundation.

Project-Syndicate

In evidenza

Unforgettable Tiananmen

It’s not surprising that the Communist Party of China has worked so hard to eradicate the 1989 Tiananmen Square massacre from public memory. History – including the horrors of Mao Zedong’s rule – is too volatile a substance for the Chinese dictatorship.

https://www.project-syndicate.org/commentary/china-tiananmen-square-protests-hong-kong-by-chris-patten-2019-05

Chris Patten, the last British governor of Hong Kong and a former EU commissioner for external affairs, is Chancellor of the University of Oxford.

Project-Syndicate

In evidenza

‘Quds’ Muslims’ password to resistance: Iran’s president

Iran’s President Hassan Rouhani said that ‘Palestine’ and ‘Quds’ are passwords for Muslims to resistance and ‘Israel’ is the password for all aggressors in the world who aim to oppress Muslims.

https://en.irna.ir/news/83332578/Quds-Muslims-password-to-resistance-Iran-s-president

IRNA

In evidenza

Advertising as a major source of human dissatisfaction: Cross-national evidence on one million Europeans

Although the negative impact of conspicuous consumption has been discussed for more than a century, the link between advertising and individual is not well understood. This column uses longitudinal data for 27 countries in Europe linking change in life satisfaction to variation in advertising spend. The results show a large negative correlation that cannot be attributed to the business cycle or individual characteristics.

https://voxeu.org/article/advertising-major-source-human-dissatisfaction

Chloé Michel, Michelle Sovinsky, Eugenio Proto, Andrew Oswald

VOX

In evidenza

The cost of complexity in the Medicare Part D market

Launched in 2006, Medicare Part D allows beneficiaries to enrol in subsidised drug coverage plans sold by private insurers, but navigating the different plans can be complex and lead to sub-optimal choices.This column uses Medicare administrative data for 2006-2010 to understand the quality of consumer decision making in the Part D marketplace. It finds that the vast majority of elderly place too much weight on premiums relative to out-of-pocket costs, care a great deal about the particular combination of plan features, and are highly likely to choose the same plan every year regardless of changes in prices and alternatives.

https://voxeu.org/article/cost-complexity-medicare-part-d-market

Michael Keane

VOX

In evidenza

Trade trends show China should take the opportunity to diversify its market

The China-US trade row has been drawing a lot of attention. A detailed review of the bilateral trade situation between China and the US from January through April is a good reference for the future trend.

http://www.globaltimes.cn/content/1151290.shtml

Global Times

 

In evidenza

Iran decries UN’s silence on crimes against civilians

The Permanent Representative of the Islamic Republic of Iran to the United Nations Majid Takht-e Ravanchi, criticizing the silence of the United Nations and the Security Council on crimes against civilians, says that the political considerations should be avoided to protect civilians in the clashes.

http://www.irna.ir/en/News/83325512

IRNA

In evidenza

Public debt and the risk premium: A dangerous doom loop

The relationship between high public debt and low interest rates is once again at the forefront of debate.This column shows that countries with high debt levels pay a risk premium. This creates the potential for self-reinforcing loops of high debt and high risk premia, which can become explosive.

https://voxeu.org/article/public-debt-and-risk-premium

Cinzia Alcidi, Daniel Gros

VOX

In evidenza

The dozen things experimental economists should do (more of)

Experimental economists must tackle the generalisability and applicability of the evidence they produce. This column discusses principles to enhance these when designing and conducting experiments or reporting findings. Good practice is especially important when policy recommendations are made based on experimental results.

https://voxeu.org/article/dozen-things-experimental-economists-should-do-more

Eszter Czibor, David Jiménez-Gómez, John List

VOX

In evidenza

Challenges in decentralised implementation of centrally mandated antipoverty programmes

Even when the central government is committed to a jobs guarantee, rationing of work opportunities can arise under decentralised implementation in poor places. This column examines India’s efforts to implement such a scheme and finds that there are two main drivers of this rationing: local administrative costs and local corruption. Partial administrative reforms by the centre can have perverse effects. Deeper policy reforms are needed to assure that stipulated rights for poor people are attained in practice.

https://voxeu.org/article/decentralised-implementation-centrally-mandated-antipoverty-programmes

Martin Ravallion

VOX

In evidenza

Around a table: Social facilitators for negotiations

Pre-negotiation interactions, such as shared meals, are viewed as a valuable means to build trust and rapport so as to improve the outcomes of the negotiation. Even tax authorities acknowledge this – business meals tend to be tax-deductible, at least in part. This column puts this folk wisdom to the test using a controlled negotiation simulation experiment with MBA students. It finds that there is no difference in negotiation outcomes whether or not pre-negotiation socialising took place.

https://voxeu.org/article/social-facilitators-negotiations

Pablo Brañas, Antonio Cabrales, Guillermo Mateu, Anxo Sánchez, Angela Sutan

VOX

In evidenza

Destination of outward FDI and variation in employment in Japanese manufacturing firms

Concerns have been raised that outward foreign direct investment may reduce domestic employment and lead to the ‘hollowing-out’ of the manufacturing industries at home. This column uses a unique dataset of Japanese firms’ overseas activities to show that going abroad does not necessarily lead to a reduction of domestic employment. Investment by Japanese firms into other Asian countries has a positive impact on domestic job creation and a negative impact on job destruction, whereas the impact of investment into European and North American countries is negative for both job creation and destruction in Japan.

https://voxeu.org/article/outward-fdi-and-employment-japanese-manufacturing-firms

Liu Yang, Bin Ni

VOX

In evidenza

Chinese online retailer JD taps into group buying service for energy firms

China’s major high-quality coal producer of Shanxi Jincheng Anthracite Coal Mining Group has clinched a group buying agreement with Chinese online retailer JD for a one-stop service of office supplies and manufacturing tools.

http://www.globaltimes.cn/content/1150706.shtml

Global Times

In evidenza

How Banning Abortion Will Transform America

Across the United States, Republican-controlled legislatures are outlawing abortion, with the hope of bringing the issue before a sympathetic Supreme Court. If they succeed in revoking women’s reproductive rights, the US will quickly become a different society – one resembling communist-era Romania.

https://www.project-syndicate.org/commentary/alabama-georgia-abortion-laws-like-communist-romania-by-maria-bucur-and-kristen-r-ghodsee-2019-05

Maria Bucur is Professor of History and Gender Studies at Indiana University.

 Kristen R. Ghodsee is Professor of Russian and East European Studies at the University of Pennsylvania.
Project-Syndicate
In evidenza

A Carbon Dividend Is Better than a Carbon Tax

As a response to climate change, a carbon tax is immensely popular among economists from across the political spectrum, and it does have an important role to play. But it is far from sufficient, and putting a price on emissions won’t work if it alienates lower- and middle-income voters.

https://www.project-syndicate.org/commentary/carbon-dividend-better-than-tax-by-mark-paul-and-anthony-underwood-2019-05

Mark Paul is an assistant professor of economics at New College of Florida and a fellow at the Roosevelt Institute.

Anthony Underwood is an assistant professor of economics at Dickinson College.

In evidenza

Why the World Needs National Development Banks

By counteracting major shortcomings of the private financial sector, national and multilateral development banks play a crucial role in supporting economic growth. Countries that already have national development banks should aim to expand their role, while others should consider establishing them.

https://www.project-syndicate.org/commentary/national-development-banks-sustainable-growth-by-stephany-griffith-jones-and-jose-antonio-ocampo-2019-05

Stephany Griffith-Jones is Financial Markets Director at the Initiative for Policy Dialogue at Columbia University.

José Antonio Ocampo is a board member of Colombia’s central bank, a professor at Columbia University, Chair of the UN Economic and Social Council’s Committee for Development Policy, and Chair of the Independent Commission for the Reform of International Corporate Taxation. He was Minister of Finance of Colombia and United Nations Under-Secretary-General for Economic and Social Affairs. He is the author of Resetting the International Monetary (Non)System, and co-author (with Luis Bértola) of The Economic Development of Latin America since Independence.

In evidenza

An Intelligent Approach to Mental Health

The costs of mental illness – in the form of disability, loss of productivity, and premature death – are often underestimated. Addressing the global mental-health challenge requires not just building up traditional mental health-care capacities, but also taking advantage of cutting-edge technologies like artificial intelligence.

https://www.project-syndicate.org/commentary/global-mental-health-ai-chatbot-by-junaid-nabi-2019-05

Junaid Nabi is a public health researcher at Brigham and Women’s Hospital and Harvard Medical School, Boston.

In evidenza

China’s mixed April data shows continued downward pressure but resilience despite trade war

China on Wednesday released a set of mixed economic data for April, with slower growth seen in retail sales and fixed-asset investment but improvements in high-tech sectors and the job market, signaling that the world’s second largest economy continues to face slowing pressure despite stabilizing signs.

http://www.globaltimes.cn/content/1149940.shtml

Global Times

In evidenza

Pecuniary and non-pecuniary motivations for tax compliance: Evidence from Pakistan

Joel Slemrod, Obeid Ur Rehman, Mazhar Waseem
VOX
In evidenza

Licensing of standard essential patents: Hold-up, reverse hold-up, and ex-ante negotiation

Standard essential patents are patents that are needed in order to comply with a particular standard. Technologies protected by such patents are granted on the condition that rights holders commit to licensing the patents on fair, reasonable, and non-discriminatory terms. This column surveys three key issues that arise under these licensing agreements: hold-up, reverse hold-up, and ex-ante negotiation. The discussion highlights how patent award procedures affect the incentives for firms to invest in R&D.

https://voxeu.org/article/licensing-standard-essential-patents

Sadao Nagaoka

VOX

 

In evidenza

Dirty Floating in Emerging Markets

Central banks are supposed to use the interest rate to achieve an inflation target and let the exchange rate float freely. So why do they often intervene in currency markets by buying and selling international reserves, and use a host of other measures to limit their currencies’ volatility?

https://www.project-syndicate.org/commentary/emerging-market-central-banks-exchange-rate-intervention-by-andres-velasco-2019-05

Andrés Velasco, a former presidential candidate and finance minister of Chile, is Dean of the School of Public Policy at the London School of Economics and Political Science. He is the author of numerous books and papers on international economics and development, and has served on the faculty at Harvard, Columbia, and New York Universities.

Project-Syndicate

In evidenza

Evolution or revolution: An afterword

The changes in macroeconomic thinking prompted by the Great Depression and the Great Inflation of the 1970s were much more dramatic than have yet occurred in response to the events of the last decade. This column argues that this gap is likely to close in the next few years as a combination of low neutral rates, the re-emergence of fiscal policy as a primary stabilisation tool, difficulties in hitting inflation targets, and the financial ramifications of a low-rate environment lead to important changes in our understanding of the macroeconomy and in policy judgements about how to achieve the best performance.

https://voxeu.org/article/evolution-or-revolution-afterword

Olivier Blanchard, Lawrence H. Summers

VOX

In evidenza

The roots of health inequality and the value of intra-family expertise

Poorer people have worse health at birth, are sicker in adulthood, and die younger than richer people. Apart from socioeconomic status, exposure to informal health expertise may also affect health. Using data from Sweden, this column examines whether having a health professional in the family has an effect on health. It concludes that differences in exposure to informal health expertise can account for some of the observed patterns of health inequality, even in an environment with universal health insurance and equal formal access to healthcare.

https://voxeu.org/article/roots-health-inequality-and-value-intra-family-expertise

Yiqun Chen, Petra Persson, Maria Polyakova

VOX

In evidenza

How to design a stimulus package

Academics and policymakers alike have debated how to structure an optimal stimulus package since the Great Recession. This column revisits the arguments related to the size of the multiplier and the usefulness of public spending, and offers a blueprint for future stimulus packages. It finds that the relationship between the multiplier and stimulus spending is hump-shaped, and that a well-designed stimulus package should depend on the usefulness of public expenditure. The output multiplier is not a robust statistic to use, and instead the ‘unemployment multiplier’ should be used.

https://voxeu.org/article/how-design-stimulus-package

Pascal Michaillat, Emmanuel Saez

VOX

In evidenza

Implementation plan for national ecological civilization pilot zone unveiled

China has unveiled “the Implementation Plan for the National Ecological Civilization Pilot Zone (Hainan),” foreseeing comprehensive experiments of ecological civilization system reform to be carried out in the southern island province.

http://www.globaltimes.cn/content/1149631.shtml

Global Times

In evidenza

China not to compromise on major principles, capable to cope with challenges: think tanks

Facing US tariff hike threats, China has adhered to its bottom line, defended national dignity and people’s interests, experts with domestic think tanks said Sunday at a symposium on China-US trade relations.

http://www.globaltimes.cn/content/1149628.shtml

Global Times

In evidenza

The Second Belt and Road Summit

On April 25-27, 2019, Chinese President Xi Jinping convened a second summit of leaders and representatives from around the world to discuss his signature program, the Belt and Road Initiative. Xi’s keynote address revealed his take on Beijing’s trade struggle with the US as well as his approach to the concerns of poorer countries that lie along the initiative’s route.

https://besacenter.org/perspectives-papers/belt-and-road-summit/

By

BESA Center

In evidenza

A Memo to Jared

recent report indicates that President Trump’s son-in-law and advisor Jared Kushner suggested that then Secretary of State Rex Tillerson and other policy makers read a January 2018 Wall Street Journal piece regarding the cutoff of American funding for UNRWA, the international agency for Palestinian ‘refugees.’ As authors of the piece referenced in the leak, we are flattered. With the administration’s much discussed peace plan to be announced in June, let us offer some last minute suggestions.

https://besacenter.org/perspectives-papers/jared-kushner-palestinians-policy/

By  and 

BESA Center

In evidenza

Arab Power Struggles Are Alive and Well

Libya’s battle for Tripoli alongside ongoing mass anti-government demonstrations that toppled autocratic leaders of Algeria and Sudan demonstrate that the popular Arab protests that in 2011 forced four presidents out of office – as well as the counterrevolution it provoked – are alive and kicking.

https://besacenter.org/perspectives-papers/arab-power-struggles/

By

BESA Center

In evidenza

Commentary: Respect for core concerns prerequisite for settlement of trade disputes

During the just concluded round of China-U.S. trade talks, Washington increased additional tariffs on 200 billion U.S. dollars’ worth of Chinese imports from 10 percent to 25 percent, a move Beijing deeply regrets and will be forced to respond to with necessary countermeasures.

http://www.xinhuanet.com/english/2019-05/11/c_138050413.htm

Xinhua

In evidenza

Going the Distance with Family Planning

Lower population growth, achieved through effective family planning, translates into higher per capita GDP, leading to higher incomes, savings, and investment. If Indonesia is to reap these benefits, it will need to revitalize a family-planning program that was once one of the most effective in the world.

https://www.project-syndicate.org/commentary/indonesia-family-planning-reduce-fertility-by-jenna-dodson-2019-05

Jenna Dodson is an associate researcher in the Biological and Environmental Sciences Department at the University of Gothenburg in Sweden.

Project-Syndicate

In evidenza

Putting Growth in its Place

Despite the political turmoil engulfing the United Kingdom, there is growing evidence to suggest that the “northern powerhouse” model of regional development outside of London is working. If the government fulfills its recent commitment to support a new Northern Powerhouse Rail project, current progress could gain even more momentum.

https://www.project-syndicate.org/commentary/northern-powerhouse-community-investment-by-jim-o-neill-2019-05

Jim O’Neill, a former chairman of Goldman Sachs Asset Management and a former UK Treasury Minister, is Chairman of Chatham House.

Project-Syndicate

In evidenza

The Real Victims of China’s Trade Patterns

Many in the West, especially US President Donald Trump, have railed against China’s massive trade surpluses, which emerged after the country’s accession to the World Trade Organization in December 2001. But China’s developing-country neighbors have far more reason to be worried.

https://www.project-syndicate.org/commentary/china-growing-trade-surpluses-in-asia-by-jayati-ghosh-2019-05

Jayati Ghosh is Professor of Economics at Jawaharlal Nehru University in New Delhi, Executive Secretary of International Development Economics Associates, and a member of the Independent Commission for the Reform of International Corporate Taxation.

Project-Syndicate

In evidenza

A Confrontation from Hell

The Iranian regime has worked hard to strengthen its national security within a supportive regional framework, and would be no pushover in a conflict with the United States. On the contrary, Iran’s response to any major military assault could result in an uncontrollable regional inferno.

https://www.project-syndicate.org/commentary/united-states-iran-war-consequences-by-amin-saikal-2019-05

Amin Saikal is Professor of Political Science and Director of the Centre for Arab and Islamic Studies (the Middle East and Central Asia) at the Australian National University. He is the author of Iran Rising: The Survival and Future of the Islamic Republic.

Project-Syndicate

In evidenza

Lending cycles and real outcomes: Costs of political misalignment

Government ownership of banks can help solve credit market failures and stabilise the supply of credit over the business cycle. However, it can also end up serving political interests and lead to a misallocation of financial resources. This column provides new evidence that state-owned banks systematically engage in tactical redistribution of credit in line with the political incentives of those in power. Analysing the geographical distribution of all lending and economic activity in Turkey, it shows that the central government may use commercial lending by state-owned banks to support allies in local elections.

https://voxeu.org/article/lending-cycles-and-real-outcomes-costs-political-misalignment

Çağatay Bircan, Orkun Saka

VOX

In evidenza

Using global demand calibrations to evaluate policy: Case study of HIV pharmaceuticals

Consumers pay more for many pharmaceuticals in the US than in most other countries. This column investigates the welfare implications of such price discrimination using demand curves for HIV pharmaceuticals. A ban on price discrimination exacerbates the potentially large deadweight loss in the market for either a drug or a vaccine. However, this loss is ameliorated by a small government subsidy.

https://voxeu.org/article/using-global-demand-calibrations-evaluate-policy

Michael Kremer, Christopher Snyder, Fanele Mashwama

VOX

In evidenza

How stress tests fail

In evidenza

No Moore golden era for US monetary policy

Stephen Moore, President Trump’s pick for the Federal Reserve Board, has been pro-cyclical in his recommendations for monetary policy, opposing stimulus when the economy needed it and favouring stimulus when the economy did not. This column argues that Moore’s switch to urging monetary stimulus when Trump took officefits into a wider pattern among of pro-cyclicalpositions among leading Republicans, not just in monetary policy, but alsofiscaland regulatory policy.

https://voxeu.org/article/no-moore-golden-era-us-monetary-policy

Jeffrey Frankel

VOX

 

In evidenza

Opening the floodgates: Immigration in the aftermath of the eastern enlargement

In the aftermath of the eastern enlargement of the EU, Norway experienced one of the largest immigration shocks of the 21st century. This column uses data from the episode to examine the general equilibrium response of wages, labour costs, and industry employment to such shocks. One finding is that although real wages in some occupations decline, the aggregate welfare effects on natives are close to zero as natives switch to higher-wage occupations. The welfare effect on the existing population of immigrants, on the other hand, is negative as they have a comparative advantage in low-wage occupations.

https://voxeu.org/article/immigration-aftermath-eastern-enlargement

Bernt Bratsberg, Andreas Moxnes, Oddbjørn Raaum, Karen-Helene Ulltveit-Moe

VOX