CEPR - Centre for Economic Policy Research

🏦The design of #monetarypolicy has traditionally considered aggregate total factor #productivity as an exogenous variable over which the #centralbank has no control. ⭐This column argues that monetary policy can affect aggregate productivity through the allocation of #capital. 👉In the face of an expansionary monetary policy shock, firms with a high marginal product of capital increase their #investment relatively more than firms with a low marginal product of capital. ✏️This leads to better overall allocation of capital, and thus productivity. 🏛️This finding suggests that central banks should take account of the broader implications of their decisions for the supply side of the economy. Vox column by: Beatriz González (Banco de España), Galo Nuño (Banco de España, Bank for International Settlements – BIS), Dominik Thaler (European Central Bank), Silvia Albrizio (International Monetary Fund) Read more here: https://ow.ly/jknI50RqCzY

📢The STEG Virtual Course on "Data in Macro Development" continues Open free-of-charge to all interested PhD students and economics faculty, this course is a valuable opportunity to enhance your understanding of macro development data. Access course materials, including syllabi, lecture presentations, and recorded sessions, on the STEG website. 📅 Upcoming May Lectures: May 3rd: International trade data with David Atkin May 10th: Public finances and expenditures with Anders Jensen May 17th: Geographic data and night lights with David Weil May 24th: Cell phone data with Martina Kirchberger May 31st: Climate and weather data with Jonathan Colmer Don't miss this chance to deepen your knowledge and expand your research toolkit! Register now and embark on your journey into the world of macro development data. Read more and register now 👉https://lnkd.in/ek8_MdSV

🚢Attacks by Houthi rebels in the Red Sea are jeopardising #trade in a crucial maritime shipping route. ⭐This column discusses the consequences for #oil prices, trade, and #inflation, and looks at the effects of more protracted disruptions. 👉Overall, shipping disruptions have had muted effects on trade and inflation. 🌊The economic effects are likely attenuated by current conditions characterised by spare capacity in global shipping, little port congestion, subdued global demand, and the adequate stock of inventories. 🛳️Even if disruptions escalate and are protracted until the end of 2024, the effects on trade and inflation are modest. Vox column by: Maria Grazia Attinasi, Lukas Boeckelmann, Lorenz Emter, Massimo Minesso Ferrari, Rinalds Gerinovics, Vanessa Gunnella, Baptiste Meunier & Roberta Serafini (European Central Bank) Read more here: https://ow.ly/wfA650RoLTX

💰Firms across many advanced economies have faced a significant increase in the #interestrates paid on borrowing and received on deposits since 2021. ⭐This column uses new data from the #UK to study how higher interest rates are impacting their sales, #employment, and #investment decisions. 👉By the third quarter of 2023, firms report that higher interest rates had lowered investment and employment by 8% and 2%, respectively. 💷This reflects both the direct impact through the higher cost of #capital, as well as indirect impacts through reduced demand. 📉Firms which are most reliant on external financing to fund investment report the largest decreases in both investment and employment as a result of higher interest rates. Vox column by: Krishan Shah (Bank of England), Nicholas Bloom (Stanford University), Philip Bunn (Bank of England), Paul Mizen (University of Nottingham), Gregory Thwaites (University of Nottingham), Ivan Yotzov (Bank of England) Read more here: https://ow.ly/hIPb50RoLep

⚔️In addition to more weapons and ammunition, #Ukraine also needs money to win the war against #Russia. 💶#EU leaders have proposed to transfer some €3 billion in incomes from the excess profits from managing frozen Russian assets this year to the European Peace Facility. ⭐This column argues that this money should instead be used to #finance borrowing by Ukraine’s partners, with the proceeds of this borrowing put in a fund that is available in a predictable manner and at a scale that matters. 👉The fiscal costs to the borrowing countries would be net zero, while Ukraine would gain significantly in terms of macroeconomic stability. Vox column by: Torbjörn Becker (Stockholm School of Economics), Yuriy Gorodnichenko (University of California, Berkeley) Read more here: https://ow.ly/L4ym50RnOxq

🎙️ Exciting Podcast Alert! 🤖 Join us for a thought-provoking discussion on the pace of AI adoption. In our latest episode, recorded at the 79th Economic Policy Panel meeting, Tim Phillips engages with Joshua Gans from the University of Toronto to explore the implications of accelerating or pausing AI adoption. Should we prioritize speed to learn more quickly about AI's impacts, or should we proceed cautiously? Tune in to gain valuable insights into this critical debate! https://lnkd.in/eYmqvxvu #AI #ArtificialIntelligence #Economics #Podcast

🏙️#Cities are warming faster than their rural surroundings. 💰But the ecosystem support provided by urban forestry is often omitted from #climate policies due to the difficulty in assigning to it a credible monetary sum. ⭐This column estimates the value of urban trees. 🐞By exploiting an ecological catastrophe – an infestation of exotic beetles in the trees of Toronto, #Canada – the authors are able to quantify the ecological and #economic value of urban forestry. 🌳They provide detailed evidence that a city’s trees reduce #energy consumption and moderate temperatures during heatwaves. Vox column by: Lu Han (University of Wisconsin-Madison), Stephan Heblich (University of Toronto), Christopher Timmins (Duke University), Yanos Zylberberg (University of Bristol) Read more here: https://ow.ly/jgAQ50RnNPp

🏗️Despite extensive research on the #labour market effects of #immigration, little is known about the dynamic effects of immigration on native #employment or the role of institutional factors or economic performance in shaping these effects. ⭐This column makes use of regional differences across multiple countries in Europe to reveal an intricate and diverse impact of immigration on native employment. 👉While the employment impact of immigration can be negative in the short run, it diminishes over time. 👉Furthermore, the employment response to immigration varies considerably by educational level and place. 🚶♀️These results highlight the importance of adopting a nuanced and targeted approach to immigration policies, including mitigating any potential short-run adverse labour market effects on low-educated workers and economically lagging regions. Vox column by: Anthony Edo (CEPII), Cem Ozguzel (OECD - OCDE) Read more here: https://ow.ly/1otG50RnMA7

🌟 Exciting Opportunity Alert! 📊 The "Data in Macro Development" virtual course offered by the Structural Transformation and Economic Growth #STEG research programme continues with an extensive schedule. 🔍 Each session will be a 60-minute lectures with 15 minutes for Q&A, exploring various data types in macro development, their strengths, limitations, and opportunities. 🎓 This intensive program fills the gap, equipping PhD students and early-career faculty with essential tools to navigate diverse data landscapes. 📅 Don't miss the upcoming appointment: 26 April 4pm BST - Multinational production data - Natalia Ramondo Read more and register: https://lnkd.in/ezdeGYN7 #STEG #Economics #DataAnalysis #Research

🌐#Japan produces and exports a sophisticated basket of machinery and capital goods. 🌊Following the global crisis, it offshored #manufacturing of parts and components to Asian countries. ⭐This column studies the impact of #exchangerate fluctuations on Japanese #exports since 1990. 💹It finds a strong effect between 1990 and 2010, when an appreciation of the #yen by 10% would reduce machinery exports by 6%. ⚙️However, since 2010, total machinery exports are less sensitive to exchange rates, particularly exports to Asian countries. 🛠️However, a depreciating yen boosts the profitability of Japanese manufacturers and their exports to non-Asian countries. Vox columns by: Willem Thorbecke (Research Institute of Economy, Trade and Industry) Read more here: https://ow.ly/39Lg50RmUzI