Policymakers have employed various new tools in response to the Global Crisis to revitalise economic performance. This new eBook brings together key Vox columns to reveal the evolution of the economic profession’s thinking about one such tool – quantitative easing.
The value of world trade is falling. The 18th Global Trade Alert report shows that the manufactures that account for a large share of the fall are those where G20 nations have imposed the most trade restrictions since 2014. G20 leaders should request that the Chinese G20 Presidency support initiatives to revive global trade and avoid more trade distortions.
This year, for the first time ever, nearly all of the world’s countries are making pledges to help limit future climate change. As of 1 October, 147 countries (representing about 85% of global emissions) have submitted their Intended Nationally Determined Contributions. These pledges, if carried out in full, are expected to lower emissions relative to the ‘business as usual’ forecast. However, they are not expected to prevent emissions from increasing above today’s level through 2030. To meet the global goal of limiting mean global temperature change to 2°C relative to the pre-industrial level, much more will need to be done after 2030. Eventually, emissions will have to fall to zero worldwide – either that, or countries will need to remove carbon dioxide directly from the atmosphere. This new Vox eBook looks into what needs to be done to build a climate regime that is both workable and effective.
Interest rates are at historic lows in advanced nations around the world and markets expect them to stay low for years. Written by four world-renowned macroeconomists, the 17th CEPR-ICMB Geneva Report on the World Economy, “Low for Long? Causes and Consequences of Persistently Low Interest Rates”, suggests that real interest rates will eventually return to more normal levels, but in the meantime deflationary traps are more likely, as are financial boom-bust cycles.
The EZ Crisis is a long way from finished. The latest VoxEU eBook presents a consensus view of what caused the Crisis and why. It argues that this was a classic ‘sudden stop’ crisis – not a public-debt crisis. Excessive, cross-border lending and borrowing among EZ members in the pre-Crisis years – much of which ended up in non-traded sectors – was why Greece’s deficit deceit in 2009 could trigger such a massive crisis. The ultimate causes were policy failures that allowed the imbalances to get so large, a lack of institutions to absorb shocks at the EZ level, and poor crisis management.