The effects of Trumpian uncertainty on U.S. economyEconomic Policy | Money & Finance
Post, January 25, 2017
By Fabien Tripier, Stéphane Lhuissier
The election of Donald Trump has generated a climate of uncertainty about U.S. economic policy that will be implemented in the near future. How much should we worry about this “Trumpian uncertainty”?
Carrier International: the beginning of the unraveling of globalization?Trade & Globalization
Post, December 15, 2016
By Jean-Francois Boittin
Dec. 1st may well be remembered in the history books of the 22nd century as the beginning of the end of globalization. This is the day when the President-elect paraded his “victory” over the management of Carrier International, a unit of United Technologies that had announced the move of 2,000 some jobs to Mexico.
Why denser areas are more productiveCompetitiveness & Growth
Post, December 2, 2016
By Lionel Fontagné, Gianluca Santoni
A key driver of productivity is ease of resource allocation. This column uses firm-level data for France to show that misallocation has a spatial dimension: resource allocation and the associated effect on productivity are related not only to firms’ characteristics, but also to the environment in which they operate. Denser commuting zones seem to offer a better match between employers and employees, leading to more productive firms.
Improving the G20 processEconomic Policy | Money & Finance | Emerging Countries
Post, October 24, 2016
By Christophe Destais
The recent G20 Hangzhou Summit is yet another example of the difficulties the G20 has to move ahead at cruising speed. Changes in the G20 process might help to increase its impact.
Comments on IMF’s “Global Trade: What’s behind the Slowdown?” – or why there is more to trade slowdown than weak demandTrade & Globalization
Post, October 18, 2016
By Sébastien Jean
The IMF’s latest World Economic Outlook points to weak demand and investment as the main factor behind the world trade slowdown. I argue that this conclusion is overblown and that the high-quality underlying work falls well short of explaining the slow trade puzzle.
Brazil: restoring fiscal austerity while preserving public servicesEmerging Countries
Post, September 7, 2016
By Cristina Terra
Restoring fiscal austerity in Brazil is not an easy task since the government faces both exerts from privileged groups and constraints establishing minimum public expenditures on some bills. It could however be done without penalizing public services if their efficiency is improved.
Should we fear the Brexit uncertainty?Competitiveness & Growth | Europe
IMF versus Krugman
Post, August 19, 2016
By Stéphane Lhuissier, Fabien Tripier
IMF cuts global growth forecasts following Brexit vote. Paul Krugman has taken a different point of view by arguing there is no reason to worry in the immediate future. This opposition reflects clearly two different opinions on the short-term consequences of uncertainty.
In search of a liquid asset for European financial marketsMoney & Finance | Europe
Post, July 15, 2016
By Francesco Molteni
European financial markets face a shortage of liquid assets. New regulations increase banks’ demand for liquid securities, mainly sovereign bonds, but the European fiscal rules constrain the supply of public debt. Further, the QE is draining bonds from the market. Some proposed forms of “Eurobonds” or new debt securities issued by European supranational organizations could solve this problem.
How Multi-Destination Firms Shape the Effect of Exchange Rate Volatility on TradeTrade & Globalization | Money & Finance
Post, June 14, 2016
By Jérôme Héricourt, Clément Nedoncelle
The idea that exchange rate volatility could be detrimental to international trade is widely accepted. Surprisingly, macroeconomic evidence on its impact on trade yields either small or insignificant effect on aggregate outcomes. This column suggests that the behavior of big, multi-destination firms help explain this puzzle.