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The CEPII Newsletter       
October 2017        

The French edition is slightly different as it also includes material available in French only  

Europe Monnaie & Finance Trade & Globalization Migrations Economic Policy Emerging Economies Competitivness & Growth Environment & Natural Ressources

Banks in Tax Havens: First Evidence based on Country-by-Country Reporting

In a recent CEPII Working Paper, Vincent Bouvatier, Gunther Capelle-Blancard & Anne-Laure Delatte provide a quantitative assessment of the importance of tax havens in international banking activity. Using comprehensive individual country-by-country reporting from the largest banks in the European Union, they provide several new insights:
    1) The average effect of being a tax haven is an extra presence of foreign affiliates by 168\%; 
    2) For EU banks, the main tax havens are located within Europe: Luxembourg, Isle of Man and Guernsey rank at the top;
    3) Attractive tax rates are not sufficient to drive extra activity;
    4) But lenient regulatory environment attract extra commercial presence; 
    5) Banks avoid the most opaque countries with weak governance;
    6) The tax savings for EU banks is estimated between €0.7 billion and €3.8 billion.


Can Trumponomics be compared to Reaganomics?

This is the question Michel Aglietta & Virginie Coudert raise In this new CEPII Policy Brief.  Revisiting the consequences of Reaganomics gives clues for assessing: 1/ the pitfalls that can undermine Trumponomics, since the initial economic and financial conditions are opposite to those that prevailed when Reagan took office; 2/  the consequences for the world and for Europe if Trump’s policy triggers a dual rise in US interest rates and in the dollar.



The new CEPII database on effective exchange rates aims to contribute to key debates in international macroeconomics by providing publicly available indicators of equilibrium exchange rates. EQCHANGE contains data on nominal and real effective exchange rates, and equilibrium real effective exchange rates and corresponding currency misalignments for advanced, emerging and developing countries. A CEPII Working Paper describes the construction of the two datasets and illustrates some possible uses by presenting results concerning the evolution and main characteristics of currency misalignments in the world from 2015 to 2016.

ISSN: 1255-7072
Editorial Director : Christophe Destais
Managing Editor : Dominique Pianelli