At the heart of policy debates about our collective responses to climate change is the issue of risk and uncertainty - ‘unknown unknowns’ about the impact of global warming. In this Vox Talk, Gernot Wagner - co-author with Harvard’s Martin L. Weitzman of 'Climate Shock: The Economic Consequences of a Hotter Planet’ - argues for Pigovian taxes and carbon pricing, against geoengineering solutions, and why 'we need to stick it to CO2, not to capitalism’.
Interest rates have been historically low for decades - long before the financial crisis. What are the causes? And what are the consequences? In this Vox Talk Charlie Bean discusses the findings of the 17th Geneva Report. He argues that the main cause of low interest rates globally is higher savings by the middle aged and that this cause will subside as the middle aged start to retire. But that will take decades and in the meantime there are challenges and risks for monetary policy.
Jean Tirole’s Nobel was for his transformative work on industrial organisation. In this Vox Talk Philippe Aghion talks about Tirole’s contribution. The interview was recorded in November 2014.
Franklin Allen, Professor of Finance and Economics at Imperial College London, and Director of CEPR's Financial Economics Programme, talks to Viv Davies about current challenges in financial economics. Allen presents what he thinks will be the main focus of the FE Programme going forward. He also discusses banking union in Europe, how financial economics has changed since the crisis and what he considers to be the major risks now facing the Eurozone.
Macroecomics has changed in a number of ways since the global crisis. For example, there is now more emphasis on modeling the financial sector, self-fulfilling panics, herd behaviour and the new role of demand. This Vox Talk discusses these changes as well as those areas in macroeconomics that are currently perhaps not researched enough. Wouter den Haan explains the inadequacy of the conventional 'rational expectations' approach, quantitative easing, endogenous risk and deleveraging and refers to current CEPR research that reflects the changes. He concludes by reminding us that the 'baby boomers' issue could be the basis of the next crisis.