Politics and economics

The Editors, 03 May 2017

The leading candidate in the French presidential election is advised by two frequent contributors to VoxEU.org – Jean Pisani-Ferry and Philippe Martin. This column presents a selection of their writings that help show their thinking on some of the most important topics facing France and Europe today.

Ed Balls, Anna Stansbury, 01 May 2017

Until recently, the independence granted to the Bank of England 20 years ago had gone unchallenged. But the financial crisis has raised questions over whether central bank independence is necessary, feasible, and democratic. This column revisits the relationship between inflation and the operational and political independence of the central bank in advanced economies. The findings support the Bank of England model of monetary policy independence: fully operationally independent, but somewhat politically dependent. To make operational independence work, however, further reforms are needed to the model in both monetary–fiscal coordination and macroprudential policy.

Ernesto Dal Bó, Frederico Finan, Olle Folke, Torsten Persson, Johanna Rickne, 26 April 2017

Ancient Athenians drew lots to determine who served in public office, but oligarchs at that time (and ever since) have argued that there is a trade-off between competence and fair representation. This column uses Swedish population data on cognitive and leadership ability to argue that democracy in Sweden has created government by competent people who are representative of all walks of life. Sweden’s inclusive meritocracy suggests that electoral democracy can help us avoid the tension between representation and competence.

Sagit Bar-Gill, Neil Gandal, 10 April 2017

Online echo chambers – in which people engage only with others that share, and media that reflect, their opinions and biases – have become an area of concern in the wake of last year’s startling political upsets. This column investigates how users navigate and explore an online content space. Highly social users and younger users are most likely to get caught in echo chambers, while opinion leaders are less likely to get caught. Reducing the visibility of content popularity information, such as ‘like’ and ‘view’ counts, may help mitigate echo chamber effects. 

The Editors, 08 April 2017

Central banks are now moving towards exiting from quantitative easing and other unconventional monetary policies. This column highlights a 2013 CEPR/ICMB report that examined the policy challenges surrounding this difficult and unprecedented task. It explores ways policymakers could handle exit and its long-run implications. This is part of the CEPR Flashbacks series that highlights the relevance of past CEPR reports to today’s challenges.

Our CEPR Flashbacks highlight past CEPR reports relevant to today’s challenges. This column highlights a report first published in 2013, which examined how the exit from unconventional monetary policies could be handled by policymakers, what the post-exit world will look like, and the long-run implications for central banks. 

Other Recent Articles:

Events