Podcast

Director’s Cut: The case for a legislative remedy for recessions

Bruegel's Maria Demertzis welcomes Yale Law School professor Yair Listokin to this Director's Cut of 'The Sound of Economics', to discuss how law might be deployed as a macroeconomic tool to counter financial crisis.

By: Date: March 12, 2019 Topic: European Macroeconomics & Governance


In this episode of Director’s Cut, Bruegel’s deputy director Maria Demertzis talks to Yair Listokin, a professor at Yale Law School, about the effect law could have on achieving macroeconomic objectives.

In his new book titled ‘Law and Macroeconomics’, Yair Listokin puts forward the idea that law has the ability to function as an instrument of macroeconomic policy. He argues that the time it took for private spending to recover after the 2008 financial crisis could have been cut, had legislation played a more vital role in the process.

Here the two elaborate on these ideas, focusing particularly on the perceived trade-off between law’s role in maintaining stability, and its potential to be used as a real-time response to economic shocks. They also discuss the applicability of this policy approach in the European reality of multiple legal frameworks and central banks struggling to stimulate aggregate demand at the zero lower interest rate bound.

You can find more on macroeconomic policy in previous editions of the Director’s Cut. First, we recommend Bruegel director Guntram Wolff’s conversation about the growth and stability challenges facing the global financial system, with Tharman Shanmugaratnam, deputy prime minister of Singapore and chair of the G20 Eminent Persons Group, and Jean Pisani-Ferry, mercator senior fellow at Bruegel. Second, consider Maria Demertzis’ discussion with Martin Sandbu of the Financial Times, on the topic of what the field of economics has learned in the decade since the financial crisis.

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Paying for the European Green Deal

The European Commission has presented its Just Transition Fund to help regions still dependent on fossil fuel as they move towards green energy. But where does the money come from and is it enough to make Europe carbon neutral by 2050? Should the EU re-write its fiscal rules to encourage sustainable investment? And should environmentalists be optimistic? Nicholas Barrett asked Simone Tagliapietra and Grégory Claeys.

By: The Sound of Economics Topic: Energy & Climate Date: January 16, 2020
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Podcast

Banking after Brexit

Will Brexit damage Britain's financial services industry? Or is talk of its diminished status just a storm in a teacup? The City of London could move closer to Wall Street or it might become "Singapore-on-Thames". Nicholas Barrett talks to Rebecca Christie about banking after Brexit.

By: The Sound of Economics Topic: Finance & Financial Regulation Date: January 16, 2020
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External Publication

Factors determining Russia’s long-term growth rate

This paper’s main conclusion is that Russia’s economy cannot grow at the pace recorded in the early and mid-2000s because of the different external environment, the different stage of development and serious demographic headwinds.

By: Marek Dabrowski Topic: Global Economics & Governance Date: January 16, 2020
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Blog Post

European green finance is expanding, a discount on bank capital would discredit it

If EU banks are to mobilise a greater share of loans for sustainable projects they will need a reliable policy framework, clear internal performance targets and the relevant skills. A discount on bank capital underlying such assets is neither justified nor likely effective. A comprehensive review of how climate risks are reflected in prudential regulation is nevertheless in order

By: Alexander Lehmann Topic: Energy & Climate Date: January 15, 2020
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Podcast

Will Iran disrupt the global economy?

Last Friday, Qassem Soleimani, head of the Iranian Revolutionary Guards’ QUDS force, was killed by an American airstrike outside Baghdad airport. The Ayatollah was not pleased and Tehran has promised to retaliate. At the time of recording, the world is still waiting to see how Iran might respond. Some of have speculated that they could disrupt the world’s oil markets by closing the Strait of Hormuz, which acts as a vital artery for around a third of the world’s liquefied natural gas and almost a quarter of the world’s oil. Today, oil prices surpassed $70 and if tension escalates the price is bound to grow. How dependent is the global economy on affordable Middle Eastern fossil fuel? This week, Nicholas Barrett is joined by Maria Demertzis and Niclas Poitiers to discuss how the US-Iran hostilities are affecting global economy.

By: The Sound of Economics Topic: Global Economics & Governance Date: January 6, 2020
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Podcast

A decade to remember (or possibly to forget) for economists

2019 is coming to an end and so is the decade. How did economics change the world over the last ten years? And did the world change economics? Which economics books defined the last ten years? And what should we anticipate in the decade to come? Today, Nicholas Barrett discusses the past and the future with Niclas Poitiers and Maria Demertzis.

By: The Sound of Economics Topic: Global Economics & Governance Date: December 20, 2019
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The Sound of Margrethe Vestager

Will AI exacerbate the gap between big companies and small ones? Do ordinary Europeans gain anything from having European tech giants? This week, Nicholas Barrett and Guntram Wolff went to the Berlaymont to interview Margrethe Vestager, the Executive Vice President of the European Commission for a Europe Fit for the Digital Age.

By: The Sound of Economics Topic: European Macroeconomics & Governance Date: December 19, 2019
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Capture the nodes

How do states exercise power through global economic networks? The multilateral world order is supposed to be harmonious, but by seizing the nodes of production, powerful forces can control access to the global economic system and threaten to lock their rival out. This week, Nicholas Barrett and Guntram Wolff are joined by Henry Farrell, Professor of political science and international affairs at the George Washington University, and Abraham L. Newman, Professor of Government at the Georgetown University, to discuss their theory of weaponised interdependency

By: The Sound of Economics Topic: Global Economics & Governance Date: December 16, 2019
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Appellate Body Politic

This week, the WTO's Appellate Body, the dispute settlement body, became inoperational: it no longer has the necessary number of judges to render verdicts. What does this mean for international trade and multilateralism? Are we now living in a world without dispute settlement? This week, Guntram Wolff is joined by Alan Beattie, the author of the FT's new Trade Secrets newsletter, and Alicia García-Herrero to discuss the crisis of the Appellate Body.

By: The Sound of Economics Topic: Global Economics & Governance Date: December 12, 2019
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What's inside the European Green Deal?

President Ursula Von der Leyen has presented her European Green Deal before the European Parliament. How will it work? What are its implications? And will it make Europe carbon neutral by 2050? Nicholas Barrett asks  Simone Tagliapietra what's inside the Green Deal.

By: The Sound of Economics Topic: Energy & Climate Date: December 11, 2019
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Podcast

Getting post-Brexit trade deals done

The UK goes to the polls on Thursday to decide who (and if) they want to "get Brexit done". But, as soon as Britain leaves, it will have 11 months to agree a trade deal with the EU. Is it possible? Nicholas Barrett is joined by Maria Demertzis and Niclas Poitiers to discuss post-Brexit trade deals with the EU and the USA.

By: The Sound of Economics Topic: European Macroeconomics & Governance Date: December 10, 2019
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Blog Post

Non-performing loans’ legacy versus secondary markets

Eleven years since the start of Europe’s financial crisis, and the legacy of non-performing loans in the EU, though much smaller, is still a live issue for some member states.

By: Joanna Surala Topic: Finance & Financial Regulation Date: December 10, 2019
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