News Archive

Illustration for EconPol Policy Brief

Why the IMF and OECD are Wrong about Inequality and Growth

|
EconPol Policy Brief
| News
This EconPol Policy Brief reassesses the relationship between inequality and growth. In their empirical analysis network members Clemens Fuest, Florian Neumeier and Daniel Stöhlker show that there is no robust negative correlation between inequality and growth. For OECD countries, they find that higher inequality coincides with higher, not lower economic growth. The authors also caution against giving the observed correlation between inequality and economic growth a causal interpretation. Both inequality and economic growth are influenced by many policy variables, including education and redistributive taxation. In their view, portraying one of these outcomes as being ‘caused’ by the other is unconvincing.
... Details
Illustration for Opinion 7

Trade Wars in a ‘Winner-takes-all’ Economy

|
EconPol Opinion
| News
What are the implications of Trump’s trade follies with tariffs for the rest of the world? EconPol network member Daniel Gros examines the nature of today’s trade wars by focusing on the high tech sector. He explains why differences in profit opportunities tend to escalate trade conflicts in a ‘winner takes all’ economy. Today, the US government is essentially lining up its diplomatic guns behind its internet giants, while Europe and China are baying for their monopoly profits. This is a zero-sum game, warns Gros, which can only turn negative sum through the collateral damage that it causes to the global trading system.
... Details
Illustration for EconPol Policy Report 5

The Effects of Immigration in Developed Countries: Insights from Recent Economic Research

|
EconPol Policy Report
| News
How does migration impact the labour market, public finance and the political landscape? In EconPol’s latest policy report network members Anthony Edo, Lionel Ragot, Hillel Rapoport, Sulin Sardoschau and Andreas Steinmayr, CEPII, show that immigration can create winners and losers in the host country’s native workforce by affecting the skill composition of receiving economies and changing wage dispersion. But cultural concerns emerge as the key driver of scepticism towards immigration. A deeper understanding of these concerns is a precondition for designing policies that foster a positive atmosphere and combat negative attitudes towards immigrants and extreme voting.
... Details
Illustration for EconPol Working Paper on Integrated Capital Markets

Population Aging and Cross-Country Redistribution in Integrated Capital Markets

|
EconPol Working Paper
| News
How can the European Union tackle its aging populations? Network member Thomas Davoine, IHS, investigates international spillovers due to capital market integration when populations age and the cross-country redistribution that this generates. Using a multi-country overlapping-generations model, he finds that labour supply drops more in rapidly aging countries, pushing up the capital-labour ratio, lowering returns on investment and generating capital flows towards countries with younger populations. The author looks at how governments can reform tax and pension policy to influence redistribution patterns and how rapidly aging countries can promote immigration to mitigate the negative redistributive effects of capital market integration.
... Details
Illustration for the event

Joint IES-VUB and EconPol Policy Forum on Future Perspectives for the EMU Brussels

|
Event
| News
The future of the European Economic and Monetary Union (EMU) is at the core of the reflection on the future of European integration. The debate about its architecture has accompanied the entire evolution of the EU and several proposals have been made in the past. This policy forum aims at an open, broad and deep discussion on the possible options for the future of the EMU, starting from the assessment of the existing proposals. We will try to investigate the economic, social and political implications of the EMU, to envisage the changes which may be necessary to move forward, and to assess the political feasibility.
... Details