Week Ending 21 February 2010

REDEMPTION OR ABSTINENCE?
Ricardo Hausmann, Ugo Panizza, 21 February 2010

Is "original sin", a situation in which the domestic currency is not used to borrow abroad or to borrow long-term even domestically, no longer a problem? This column argues that, while original sin has diminished and countries are making greater use of their domestic bond market, foreign currency debt is still too risky to be sensible.

Read article: http://www.VoxEU.org/index.php?q=node/4655

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Week Ending 13 February 2010

ELEVEN LESSONS FROM ICELAND
Thorvaldur Gylfason, 13 February 2010

How to stop a repeat of Iceland's crisis – both in the country and elsewhere? This column provides eleven lessons covering asymmetric information, moral hazard, better warning systems and improved regulation, preventing banks becoming "too big to fail" and restricting asset bubbles, holding creators of externalities to account, and providing safeguards on political interference.

Read article: http://www.VoxEU.org/index.php?q=node/4612

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Week Ending 7 February 2010

TAX BANKS TO DISCOURAGE SYSTEMIC-RISK CREATION, NOT TO FUND BAILOUTS
Enrico Perotti, 7 February 2010

Obama's plans for bank taxation took markets, policymakers, and academics by surprise, leaving all parties now debating its merits. This column suggests an alternative. By raising a Pigouvian tax based on banks' individual contribution to systemic-risk creation, the policy would target the externality caused by funding fragility while raising the cost of opportunistic risk creation in good times.

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Week Ending 30 January 2010

HAPPY PEASANTS AND MISERABLE MILLIONAIRES
Carol Graham, 30 January 2010

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Week Ending 24 January 2010

MAKING SENSE OF OBAMA'S BANK REFORM PLANS
Viral Acharya, Matthew Richardson, 24 January 2010

Obama's sweeping proposal for financial regulation took the world by surprise. Here two of the world's leading professors of finance explain why it is step in the right direction from the standpoint of addressing systemic risk. They also point out a number of drawbacks that should be fixed.

Read article: http://www.VoxEU.org/index.php?q=node/4521

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Week Ending 16 January 2010

DOES THE GREAT RECESSION REALLY MEAN THE END OF THE GREAT MODERATION?
Olivier Coibion, Yuriy Gorodnichenko, 16 January 2010

Was the Great Moderation "something of a fluke"? This column argues that good monetary policy did play a role in taming inflation. It argues that the current recession, while clearly severe by historical standards, does not seem to imply a return to the levels of volatility observed in the 1970s.

Read article: http://www.VoxEU.org/index.php?q=node/4496

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Week Ending 19th December 2009

TRADE AND THE LABOUR MARKET IN THE US: A NEW INSIGHT ON POTENTIAL COSTS
Pravin Krishna, Mine Z. Senses, 19 December 2009

Public concerns regarding globalisation remain as economists still do not agree on trade's effect on the labour market. This column focuses on the effect of increased trade on permanent income shocks experienced by workers in the US. It suggests that increased import penetration is associated with increased risk to worker incomes.

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Week Ending 5th December 2009

WHY A CAP-AND-TRADE SYSTEM CAN BE BAD FOR YOUR HEALTH
Daniel Gros, 5 December 2009

The purpose of a cap-and-trade system is to help in the fight against global climate change. This column warns that a unilateral approach could increase global emissions by shifting production to more carbon-intensive methods abroad. Acting alone, the EU's Emission Trading Scheme may be doing more harm than good.

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Week Ending 21st November 2009

HOW PREFERENTIAL ARE PREFERENTIAL TRADE AGREEMENTS?
Céline Carrère, Jaime de Melo, Bolormaa Tumurchudur Klok, 21 November 2009

Almost all economies are party to preferential trade schemes. But how much are they 'giving away' or 'receiving' in preferential access? This column presents a compact representation of effective market access and applies it to the proposed ASEAN-EU trade agreement.

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