Scotland as an Optimal Currency Area

Since the Scottish independence movement has reached the point that there will be a referendum on Scottish independence this September, the issue of whether the Scotland is optimal currency areas is very topical.In this paper we review the microeconomic foundations of an optimal currency area. We test these microeconomic foundations. We find that the UK, Scotland and the UK without Scotland meet the microeconomic criteria for a common currency area. While adopting a common currency is ultimately a political decision, these results imply that the broadest of these areas, the UK, is the optimal currency area in the sense of minimizing transactions costs.We do find differences in the UK less Scotland and Scotland economies in loan data. We further find that neither the euro bloc nor the euro bloc including Scotland meet the microeconomic criteria for a common currency area. In the event of a “yes” vote for Scottish independence, the immediate problem facing the Scottish government is to decide on an exchange rate regime that is seen as credible by the financial markets to avoid a flight of capital. How policymakers chooses between alternative exchange rate regimes is currently a topic for hot debate in central banking circles and the process of a monetary union breaking up is a fascinating area worthy of future research

Job profiling: How artificial intelligence supports the management of complexity induced by product variety

Firms and supply chains (SC) increasingly are forced to customise products and optimise processes since today’s markets are, on average, more demanding in terms of both costs and customer satisfaction. Generally, when product variety (PV) increases not only improves sales performance, since products offered better fit customers’ expectations, but also increases the complexity in SC processes management, rising operational costs. For that reason, accurate management of product diversity is a fundamental point for the brands' success, which is why it is going to be investigated in that project. Moreover, firms’ managers apply strategies to mitigate or accommodate this complexity, avoiding the customer satisfaction and cost trade-off to remain competitive and survive. However, we were wondering if it is enough. Artificial Intelligence (AI) has emerged to stay. Digitalisation era, data availability, and the improvement in computing power have boomed AI’s potential in improving systems, controlling processes, and tackling complexity. These strengths are suitable to help managers not only to tackle the complexity arising from PV but also to boost the supply chain performance (SCP

China's employment challenges and strategies after the WTO accession

Although China has made impressive progress in economicdevelopment and improving social well-being, it is facing many daunting challenges while transforming toward a knowledge and service-based economy and further opening up to international competition after its WTO accession in the context of knowledge revolution. One of the biggest challenges is how to create 100-300 million new jobs in the coming decade to absorb the millions of laid-offs, rural emigrants and newly added labor force. China has been successful in building high-tech parks and ICT industries, but they are limited in terms of employment generation, while most of the traditional labor-intensive industries are losing competitiveness due to low productivity. In order to combat the unprecedented employment challenge, China must implement a systemic and sustained strategy, which may consist of the following policy thrusts: encouraging the private sector; promoting small and medium enterprises; expanding the service sector; reforming the state-owned enterprises; strengthening the social security system; improving labor market flexibility; and establishing mass retraining programs.Public Health Promotion,Banks&Banking Reform,Municipal Financial Management,Environmental Economics&Policies,Labor Policies,Economic Theory&Research,Environmental Economics&Policies,Banks&Banking Reform,Municipal Financial Management,Health Monitoring&Evaluation

Research for development : a World Bank perspective on future directions for research

This paper provides an overview of the history of development research at the World Bank and points to new future directions in both what we research and how we research. Six main messages emerge. First, research and data have long been essential elements of the Bank's country programs and its contributions to global public goods, and this will remain the case. Second, development thinking is in a state of flux and uncertainty; it is time to reconsider both the Bank's research priorities and how it does research. Third, a more open and strategic approach to research is needed -- an approach that is firmly grounded in the key knowledge gaps for development policy emerging from the experiences of developing countries, including the questions that policy makers in those countries ask. Fourth, four major sets of problems merit high priority for our future research: (i) securing economic transformation; (ii) broadening opportunities to participate in the benefits of, and contribute to, such transformation; (iii) dealing with emerging risks at all levels; and (iv) assessing the results of development efforts, including external assistance. Fifth, a new multi-polar world requires a new multi-polar approach to knowledge; the Bank must learn from, and collaborate with, developing-country researchers and institutes. Sixth, greater emphasis must be given to producing the data and analytic tools for others to do the research themselves and providing open access to those tools. And open data initiative needs to be extended to open knowledge. This will better inform development policy debates and allow for deeper engagement with the direct stakeholders in the outcomes of those debates.Banks&Banking Reform,ICT Policy and Strategies,Tertiary Education,Economic Theory&Research,Agricultural Knowledge&Information Systems

Modeling the impacts of corporate commitment on climate change

The aim of this paper is to propose an integrative framework for understanding the determinants of business strategies to reduce greenhouse gas emissions and the impact of these determinants on performance. The proposed structural equation model is based on a survey of 319 Canadian manufacturing firms. The study calls into question the traditionally positive relationship between a firm's environmental commitment and its economic motivations. However, the results also show a win–win relationship between the commitment to reduce greenhouse gas emissions and financial performance. This study contributes to the understanding of the motivations underlying the efforts manufacturers make to tackle climate change and their economic benefits. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment

Beyond Copenhagen: A climate policymaker's handbook

It is still unclear what a post-Kyoto international regime to tackle climate change will look like. Negotiations on a post-2012 framework are revisiting questions that arose when the Kyoto Protocol was put in place Â? such as how targets can best be shared out, and how the different interests of rich and poor countries can be addressed Â? but policymakers must also face new realities. Scientific evidence shows that the climate policies formulated so far are unfit to deal with the magnitude of the challenge. This book looks realistically at the options for a deal to succeed the Kyoto Protocol. It sets out some of the main ingredients that will have to be included for finalisation of an economically rational agreement that stands a real chance of addressing the threat to the climate system. It critically analyses the European Union's climate policies before reviewing the key elements of such an agreement: carbon markets, flexible mechanisms for transferring money and technology to developing countries, innovation, and the effective enforcement of a global climate deal. The contributors to the volume are Joseph E Aldy, Valentina Bosetti, Carlo Carraro, Juan Delgado, Denny Ellerman, Dieter Helm, Axel Michaelowa, Robert N Stavins and Massimo Tavoni. The French Ministère de lâ??Ecologie, de lâ??Energie, du Développement durable et de la Mer, under the auspices of the 2008 French Presidency of the Council of the European Union, contributed financial support to the production of this volume.

Climate change and growth

Contrary to much of the conventional wisdom, taking stronger actions on climate change may enhance economic growth, even as conventionally measured, but even more so, in terms of societal well-being. We identify the flaws in the models and analyses which contend that there must be a trade-off and explain the mechanisms and dynamic forces which have the potential to enhance growth. Critically, there are numerous market failures that result in suboptimal economic performance. We explain how addressing climate change reduces the bite of these failures and enhances the incentives and political will to address them. We identify packages of policies that alleviate market failures, enhance growth, and reduce carbon emissions. Finally, we argue that the green transition is coming at a time when, both because of persistent deficiencies of aggregate demand and advances in technology, including artificial intelligence and robotization, the macroeconomic opportunity costs of strong climate actions may be especially low and the benefits particularly high

A system dynamics-based framework for examining Circular Economy transitions

Funding Information: The authors would like to sincerely thank the Higher Education Personnel Improvement Coordination ( CAPES ), from Brazil, for financially supporting this research. CENSE is supported by the Portuguese Foundation for Science and Technology ( FCT ) through the strategic project UIDB/04085/2020. Publisher Copyright: © 2021 The AuthorsDecision-makers in the public policy and business arenas need tools to deal with multiple sources of complexity in Circular Economy (CE) transitions. System Dynamics (SD) facilitates coping with increased complexity by enabling closed-loop thinking via identifying the causal structures underlying behaviour and permitting to proactively experiment with the system through simulation. This research aims to propose and test an SD-based framework for examining CE transitions to supporting decision-making at the micro-, meso-, and macro-levels. Two inductive model-based cases studies led to formalising the framework, finally tested in a third deductive model-based case study. The framework is built upon the well-known stages for building SD simulation models and complemented with domain-specific activities, guiding questions, and expected outcomes when examining CE transitions. The SD-based framework is the first modelling-oriented prescriptive approach to help researchers and practitioners examining CE transitions on their journeys to understand and facilitate changes through SD simulation models.publishersversionpublishe