Maylis Avaro, Vincent Bignon, 20 July 2019

The payment landscape is changing. This column goes back to late 19th century France to explore the implications of this more decentralised and less banked landscape for the design of central banks’ interventions when fighting financial crises. The Banque de France operated a very wide discount window and used a variety of risk management techniques to effectively subdue risk-taking behaviours and to protect its balance sheet from taking any loss. This helped it to stabilise the economy and to overcome the consequences of negative income shocks.

David Arnold, 19 July 2019

In the early days of his administration, Brazilian President Jair Bolsonaro announced plans to privatise several of the country's largest state-owned enterprises and airports. Fearing such a move would lower both wages and employment, labour unions organised in opposition to Bolsonaro’s plans. This column looks anew at evidence testing whether privatisation offers more than merely an immediate infusion of revenue, and finds that while increases in efficiency might contribute to Brazil’s overall economic growth, privatisation could also expose the country’s most vulnerable workers to significant risk of decreased wages.

Nikhil Datta, 19 July 2019

Is the rise of ‘atypical’ work arrangements – such as self-employment, freelancing, gig work and zero-hour contracts – a result of workers wanting such jobs or because they have no other choice? This column reports evidence from the UK and the US that while atypical workers may like flexibility, they would prefer a steady job. Indeed, workers would agree to earn less in order to increase their employment security.

Charles Courtemanche, Art Carden, Xilin Zhou, Murugi Ndirangu, 18 July 2019

Food security is a concern even in industrialised countries, with 14.5% of US households lacking food security during at least some of the year 2012. This column examines the impact of Walmart Supercenters’ entry into the local market and finds that it improves food security, especially among low-income households and households with children. It suggests that the unintended consequences of policies aimed at thwarting Walmart’s market entry may reduce food security for the most vulnerable segments of society.

Sayuri Shirai, 18 July 2019

Modern monetary theory (MMT) has recently gained prominence in light of doubts about the effectiveness of monetary policy in addressing economic shortfalls. This column assesses the implications of implementing the theory’s policy prescriptions, and the challenges it presents in the case of Japan – an economy that some have argued has already been subject to such policy. Japan’s labour shortages and low inflation mean modern monetary theory’s fiscal stimulus suggestions may be harder to implement than they initially seem.

Other Recent Columns:

Events

  • 17 - 18 August 2019 / Peking University, Beijing / Chinese University of Hong Kong – Tsinghua University Joint Research Center for Chinese Economy, the Institute for Emerging Market Studies at Hong Kong University of Science and Technology, the Guanghua School of Management at Peking University, the Stanford Center on Global Poverty and Development at Stanford University, the School of Economics and Management at Tsinghua University, BREAD, NBER and CEPR
  • 19 - 20 August 2019 / Vienna, Palais Coburg / WU Research Institute for Capital Markets (ISK)
  • 29 - 30 August 2019 / Galatina, Italy /
  • 4 - 5 September 2019 / Roma Eventi, Congress Center, Pontificia Università Gregoriana Piazza della Pilotta, 4, Rome, Italy / European Center of Sustainable Development , CIT University
  • 9 - 14 September 2019 / Guildford, Surrey, UK / The University of Surrey

CEPR Policy Research