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Addressing long-term unemployment in the aftermath of the great recession

Addressing long-term unemployment in the aftermath of the great recession

Addressing long-term unemployment in the aftermath of the fantastic Recession

Lawrence Katz, Kory Kroft, Fabian Lange, Matthew Notowidigdo 03 December 2014

In the aftermath of the fantastic Recession, there remains numerous long-term unemployed across countries. This column argues that policies targeting the long-term unemployed, if effective, may have substantial benefits for the aggregate labour markets. However, proof the potency of active labour market policies varies across policies and populations. It really is, therefore, imperative to add an evaluative element of new and existing labour market policies.

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Addressing europe’s infrastructure gaps

Addressing Europe’s infrastructure gaps: Fiscal constraints and planning capacity matter

Philipp-Bastian Brutscher, Andreas Kappeler 18 April 2018

Adequate infrastructure is vital for growth. Because the financial meltdown, however, public sector infrastructure investment in the EU has been scaled back. This column uses data from a recently available survey to explore the sources of Europe’s infrastructure gaps. The results claim that more coordination and planning are necessary for infrastructure projects, both at the EU and national levels. Efforts to attract private investors also have to continue.

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Addressing global imbalances requires cooperation

Addressing global imbalances requires cooperation

Maurice Obstfeld 10 August 2018

The IMF’s 2018 External Sector Report assesses the existing account balances for the 30 largest economies. In this article, Maurice Obstfeld outlines the main element findings of the report.

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The IMF has just released the most recent assessments of the existing account balances for the 30 largest economies inside our 2018 External Sector Report (ESR). These assessments certainly are a key facet of the IMF’s mandate to market international monetary cooperation and help countries build and keep maintaining strong economies. They make an effort to answer the difficult and frequently contentious question of when current account surpluses and deficits work or if they signal risks. Before jumping in to the results, a little bit of background pays to.

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Addressing gender inequality via choice architecture

Addressing gender inequality via choice architecture

Joyce He, Sonia Kang, Nicola Lacetera 08 February 2020

Many work environments require their workers to use for promotions, an activity that results in fewer women opting to compete. This column presents evidence to claim that changing promotion schemes to a default where many people are considered but gets the substitute for ‘opt out’ may help close the gender gap in applications to compete for promotions.

Banks

A ‘sovereign subsidy’ – zero risk weights and sovereign risk spillovers

A ‘sovereign subsidy’ – zero risk weights and sovereign risk spillovers

Josef Korte, Sascha Steffen 07 September 2014

European banking regulation assigns a risk weight of zero to sovereign debt issued by EU member countries, rendering it an attractive investment for European banks. This column defines a ‘sovereign subsidy’ as a fresh measure quantifying from what extent banks are undercapitalised as a result of zero risk weights. Using recent sovereign debt exposure data, the authors describe the build-up of the subsidy for both domestic and cross-country exposures.

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Adaptive diversification of covid-19 policy

Adaptive diversification of covid-19 policy

Adaptive diversification of COVID-19 policy

Charles Manski 12 June 2020

Formation of COVID-19 policy must cope with many substantial uncertainties about the type of the condition, the dynamics of the pandemic, and behavioural responses. This column argues that rather than making policy that’s optimal in hypothetical scenarios but potentially definately not optimal in reality, it really is more prudent to approach COVID-19 policy as a problem in decision making under uncertainty. Under ‘adaptive diversification’, a variety of policies will be implemented across locations and policymakers can revise the proportion of locations assigned to each policy as evidence accumulates.

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A “modest” intellectual discipline in defence of contemporary economics

It isn’t the work of economists to forecast crises

This claim will surprise many, yet it really is true. Economists work in lots of places, including academic institutions, public administration, and firms. If they’re academics, they are likely to move the frontier of research by giving new theories, methodologies, and empirical findings. If indeed they work for a public administration, they’ll frequently evaluate policies. Sometimes they’ll do forecasts, but such forecasts need to be understood as routine projections that are mostly used to get a concept of the likely evolution of the budget deficit. Finally, those that work at firms are very often involved with providing arguments in anti-trust or discrimination trials. Those that do forecasting at places such as for example Goldman Sachs provide guidance to the traders about the prospects for say, Brazilian public debt or the evolution of commodity prices. Goldman could have made lots of money if it turned out in a position to correctly forecast the crisis, however the market economists get excited about routine activities rather than in the modelling of rare systemic events.

Banks

A “legacy-equity” mechanism to recapitalise the banks

Complementarity of CAP and LAP

The Treasury has highlighted the complementary nature of the programs in countless occasions. Less clear may be the final form the CAP might take. As of now, we realize that following the stress tests are concluded, banks which have insufficient capital to overcome an extreme macroeconomic scenario will get a window of time to improve private capital or even to connect with a contingent convertible preferred shares program. That is a sensible approach, but I really believe a relatively small modification can significantly improve the participation of private capital in the program.

Banks

A ‘what if’ approach to assessing proposals for euro area reform

A ‘what if’ approach to assessing proposals for euro area reform

Learning from mistakes: A ‘what if’ method of assessing proposals for euro area reform

George Papaconstantinou 21 June 2018

The policy discussion on euro area reform has entered a crucial phase. This column, portion of the VoxEU debate on euro area reform, attempts a ‘what if’ experiment predicated on the proposals in the recent CEPR Policy Insight. Concentrating on the Greek case, it talks about the counterfactual case of such proposals having recently been implemented first of the crisis and examines their potential role in avoiding the outbreak of the crisis or mitigating it once it had been underway.

Banks

A “deal” mentality is bad macroeconomics

A “deal” mentality is bad macroeconomics

Ricardo Caballero 05 March 2009

The Obama team’s strong words are accompanied by policies focused on obtaining a ‘deal’ for taxpayers. Here among the world’s leading macroeconomists argues that squeezing current stakeholders for political appearance is short-sighted and self-defeating. Before systemic panic is alleviated, the crisis will continue. This involves the investment of massive political capital at this time; we are running out of time.