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Policy Brief

Rethinking industrial policy

Industrial policy has a bad name: ‘picking winners’ and thus distorting competition, while exposing government to capture by vested interests. But there are reasons for a rethink. First, climate change: without government intervention to jump-start massive private investment in clean technologies, governments, by default, encourage investment in dirtier technologies. Second, a new post-crisis realism: laissez-faire […]

By: , and Date: June 16, 2011 European Macroeconomics & GovernanceInnovation & Competition Policy Tags & Topics

Industrial policy has a bad name: ‘picking winners’ and thus distorting competition, while exposing government to capture by vested interests. But there are reasons for a rethink. First, climate change: without government intervention to jump-start massive private investment in clean technologies, governments, by default, encourage investment in dirtier technologies. Second, a new post-crisis realism: laissez-faire complacency by many governments has led to mis-investment in the non-tradable sector at the expense of growth-rich tradables. Third, China – and some other emerging economies – are big deployers of growth-enhancing sectoral policies. The challenge for Europe is how it can design and govern sectoral policies that are competition-friendly and thus growth-enhancing.

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Opinion

Alicia García-Herrero

‘Old China’ bad, ‘New China’ good: Growing divergence in Chinese corporate health

Divergence in debt levels and corporate health in China is growing, with many state-owned companies still stuck in the past and new industries such as tourism and healthcare overtaking the old ones. While fiscal and monetary stimulus may temporarily cover up the problems of companies in the old industries, a restructuring of these sectors seems inevitable.

By: Alicia García-Herrero Topic: Global Economics & Governance Date: July 26, 2016
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Alicia García-Herrero
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Assessing China’s post-Brexit globalisation strategy

As the world comes to terms with the result of the UK's Brexit referendum, what will it mean for China? The authors suggest that the short-term impact will be smaller for China than for other regions. But there are important considerations further ahead.

By: Alicia García-Herrero and Jianwei Xu Topic: Global Economics & Governance Date: July 19, 2016
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Working Paper

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The China-Russia trade relationship and its impact on Europe

This paper analyses empirically how increasingly close trade relations between China and Russia might affect the European Union.

By: Alicia García-Herrero and Jianwei Xu Topic: Global Economics & Governance Date: July 14, 2016
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China-Russia relations and their impact on Europe

The economic ties between China and Russia are growing. How will this relation affect Europe?

Speakers: Marek Dabrowski, Zsolt Darvas, Alicia García-Herrero, Vasily Gavrilov, Eric Girardin, Matteo Governatori, Iikka Korhonen, Heli Simola, Laura Solanko, Mingxi Sun and Jianwei Xu Topic: Global Economics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: June 21, 2016
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Will China's slowdown bring headwinds or opportunities for Europe and Central Asia?

After years of rapid growth, China's GDP is expanding more slowly. There are fears about the global impact, but could there also be opportunities for Europe and Central Asia?

Speakers: Maurizio Bussolo, André Sapir and Jianwei Xu Topic: Global Economics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: April 29, 2016
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Opinion

Alicia García-Herrero

Debt, not reserves, to constrain China’s cross-border buying spree

Despite an $800 billion drain on China’s foreign reserves over the last 20 months, Chinese firms have been on a buying spree that has only accelerated since the beginning of the year.

By: Alicia García-Herrero Topic: Global Economics & Governance Date: April 27, 2016
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Opinion

Alicia García-Herrero

Chinese banks: the way forward

Despite the economic downturn the Chinese banking system continues its expansion. Concerns are rising about the institutions' strenght, as bad loans continue to grow. Heightened competition among fintech companies and low net interest margin are other causes for concern.

By: Alicia García-Herrero Topic: Global Economics & Governance Date: April 19, 2016
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Blog Post

Alicia García-Herrero

China continues to focus on growth not reform

The central government will hold the National People’s Congress (NPC) meeting on March 5th. All the signs point to more monetary and fiscal stimulus, especially since the G20 gathering in Shanghai. The key is how to use the fiscal stimulus efficiently.

By: Alicia García-Herrero Topic: Global Economics & Governance Date: March 4, 2016
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Opinion

Ashoka Mody

The market's troubling message

Amid one of the worst market routs on record, a chorus of reassuring economic commentators insists that global fundamentals are sound and investors are overreacting, behaving like a panicked herd. Don’t be so sure.

By: Ashoka Mody Topic: Finance & Financial Regulation Date: January 30, 2016
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Opinion

Alicia García-Herrero

China is running out of options as foreign reserves drop

The Chinese are watching a new storm unfold in their financial markets, only months after having been bombarded with news about China’s “historical victory” when the Renminbi was designated an official reserve currency under the IMF’s SDR regime in November.

By: Alicia García-Herrero Topic: Global Economics & Governance Date: January 21, 2016
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The new silk road: what is in it for Europe

How will the new Silk Road initiative affect the European economy?

Speakers: Jean-Francois Di Meglio, Pedro Nueno, Alicia García-Herrero, Elton Huang, David Gosset, Juan Carlos Martinez Oliva, Michael McCannon, Gary Liu, Edith Terry, Caspar Welbergen, Kar-yiu Wong, Jianwei Xu, Xu Sitao, Xue Li, Zhang Xiaoqiang and Zhao Jinping Topic: Global Economics & Governance Location: Shanghai Date: January 14, 2016
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Opinion

Ashoka Mody

Another slow year for the global economy

The factors that dragged down the global economy in 2015 will persist – and in some cases even intensify – in the new year.

By: Ashoka Mody Topic: Global Economics & Governance Date: January 5, 2016
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