In the wake of the Global Crisis, emerging Europe has experienced a sharp drop in investment levels. As a result, income convergence has virtually come to a halt. This column presents key findings of the EBRD’s latest Transition Report, urging countries in emerging Europe to rebalance their financial systems in order to reignite economic growth. Rebalancing is necessary in terms of the available debt–equity mix, the currency composition of credit, banks’ funding sources, and cross-border investment partners.
Çağatay Bircan, Ralph De Haas, Hans Peter Lankes, Alexander Plekhanov, Tuesday, November 10, 2015 - 00:00
Lucas Bretschger, Sunday, October 11, 2015 - 00:00
There is reasonable hope that the upcoming United Nations Conference on Climate Change in Paris (COP21) will reach a consistent global climate agreement. What makes the negotiations particularly difficult is not economic efficiency, but the equity implications of climate policy. This column presents a framework for incorporating equity concerns into policy design. Building from four equity principles, it reduces the complex problem of international burden sharing to a simple rule tied to a single metric.
Charles A.E. Goodhart, Philipp Erfurth, Monday, November 3, 2014 - 00:00
Elke Jahn, Regina T. Riphahn, Claus Schnabel, Wednesday, October 10, 2012 - 00:00
Economic policymakers across Europe have sought to increase labour market flexibility by promoting the use of temporary employment. This column points to a possible trade-off between efficiency and equity when deregulating labour markets, suggesting that flexible forms of employment can be both a boon and a bane for labour markets and for society as a whole.
Richard B. Freeman, Stephen Machin, Martina Viarengo , Tuesday, January 4, 2011 - 00:00
Many interpret countries' scores in international testing as grades of their national educational policies. Summarising evidence from international maths exams, this column finds that the highest-scoring countries are those with the least inequality in test scores, suggesting a “virtuous” equity-efficiency trade-off. It also finds that countries perform even better when test scores are highly correlated with the number of books in the family home.
Sebastian Rausch, Gilbert E. Metcalf , John Reilly , Sergey Paltsev, Saturday, July 31, 2010 - 00:00
The carbon-pricing implications of cap-and-trade programmes have raised concern that they might be a regressive policy tool. This column documents how allowance allocation schemes similar to those in recently proposed US legislation address distributional concerns and challenges the view that carbon pricing is necessarily regressive.
John Turner , Graeme Acheson , Charles Hickson, Qing Ye, Saturday, May 10, 2008 - 00:00
Past performance is no guarantee, but history tells us that the equity risk premium has been persistent. This column shows that British investors enjoyed relatively high returns in the nineteenth century, though today’s UK market differs greatly from its formative ancestor.