An Investment and Equality-Led Sustainable Development Strategy for Europe

Austerity policies coupled with rising inequality in Europe have resulted in a prolonged stagnation and a vicious circle of chronically low demand, slow down in investment and productivity, and economic, social and political instability. In order to end this vicious cycle, Europe needs directed public investment policies accompanied by industrial policy, higher equality, stimulated demand, and regulation of finance and corporate governance. Our research presents strong empirical evidence that expansionary fiscal policy is sustainable when wage and public investment policies are combined with progressive tax policy; the impact is stronger when these policies are implemented in a coordinated fashion across Europe due to strong positive spill over effects on demand. A strong investment performance also requires a process of de-financialization of the economy and a new approach to corporate governance

A systematic literature study on the effects of environmental enrichment on zebrafish (Danio rerio)

I dag holdes sebrafisk som brukes i forskning stort sett i kar uten miljøberikelser, på tross av at forskning viser at miljøberikelse kan ha en positiv effekt på dyrevelferden. Denne oppgaven tar for seg 39 studier som ser på hvilken effekt miljøberikelser har på sebrafisk på en rekke områder. Målet er å bidra til å finne standardløsninger for miljøberikelser hos sebrafisk som kan være med på å øke dyrevelferden til sebrafisk i laboratorier. Oppgaven tar for seg hvilken kunnskap som finnes på feltet fra før, effektene miljøberikelse kan ha, samt hva det bør forskes videre på. Videre forskning bør se på hvordan ulike berikelser påvirker sebrafisk, hvordan berikelser påvirker datainnsamling og konsistens i data, hvordan miljøberikelser påvirker replisering av forskning, samt hvilke berikelser som er mulig å standardisere med tanke på tilgjengelighet i verden og pris

The Elusive Recovery: Overview

The economic, financial and institutional crisis which started in 2008 looks like it is never going to end. Nearly 9 years after the meltdown of the financial system of developed countries, after a violent recession followed by the euro debt crisis in 2012, a recovery finally started in late 2014. It has been pushed by a mix of fair winds, such as low oil prices, low interest rates, a lower effective exchange rate of the euro, a less negative fiscal stance in the euro area and unconventional monetary policies. Adding to those fair winds, the Juncker commission took stock of the worrying situation in 2015 and proposed the Juncker Plan to boost (mostly private) investment in the EU

The Elusive Recovery: Overview

The economic, financial and institutional crisis which started in 2008 looks like it is never going to end. Nearly 9 years after the meltdown of the financial system of developed countries, after a violent recession followed by the euro debt crisis in 2012, a recovery finally started in late 2014. It has been pushed by a mix of fair winds, such as low oil prices, low interest rates, a lower effective exchange rate of the euro, a less negative fiscal stance in the euro area and unconventional monetary policies. Adding to those fair winds, the Juncker commission took stock of the worrying situation in 2015 and proposed the Juncker Plan to boost (mostly private) investment in the EU

Proposals for a policy mix in the euro area: Chapter 3

Since 2009, central banks have implemented expansionary policies to support activity and prevent industrialized economies from falling into deflation. In a recessionary environment, policy rates reached an effective lower bound (ELB) which has led central banks to resort to unconventional measures. These policieshave resulted in an expansion of their balance sheets, reflecting liquidities provided by central banks to the financial system and asset purchases. These actions have raised many questions about their impact on real activity because recovery has been weak in the Eurozone, notably compared to the United States and the United Kingdom (see chapter 1). In the following, we focus on ECB policies’ impact on investment (section a) and on the impact of credit conditions on investment (section b). Questions have also been raised concerning the possible responsibility of monetary policy in generating financial bubbles (section c). The end of QE finally raises the issue of next engine of growth for the euro area (section d)

Proposals for a policy mix in the euro area: Chapter 3

Since 2009, central banks have implemented expansionary policies to support activity and prevent industrialized economies from falling into deflation. In a recessionary environment, policy rates reached an effective lower bound (ELB) which has led central banks to resort to unconventional measures. These policieshave resulted in an expansion of their balance sheets, reflecting liquidities provided by central banks to the financial system and asset purchases. These actions have raised many questions about their impact on real activity because recovery has been weak in the Eurozone, notably compared to the United States and the United Kingdom (see chapter 1). In the following, we focus on ECB policies’ impact on investment (section a) and on the impact of credit conditions on investment (section b). Questions have also been raised concerning the possible responsibility of monetary policy in generating financial bubbles (section c). The end of QE finally raises the issue of next engine of growth for the euro area (section d)

Macro economic trade-offs in the euro area: Chapter 4

The last year Report of the Five Presidents highlighted the necessity of progress in the EU in four directions: achieving “a genuine Economic Union, (…) a FinancialUnion, (…) a Fiscal Union, (and) a Political Union”. The associated roadmap for completing the EMU includes a greater focus on employment, a better implementation of the Macroeconomic Imbalance Procedure, a better assessment of fiscal stance and fiscal sustainability, the completion of the BankingUnion and the launch of a Capital Markets Union. They thus pointed to a very large set of ambitions which renewed the debate about the consistency ofexisting 6-pack, 2-pack and Fiscal compact, which were mainly related to fiscal and competitiveness issues. This roadmap raises an important question: is it possible within the given institutional setting to close the unemployment gap (the difference between actual and natural rates of unemployment), that is to say increase the “well-being of the peoples” (Art. 3 TEU) in a sustainable way, achieve public finance sustainability, reduce macro imbalances, and ensure the liquidity and solvency offinancial institutions and other objectives at the same moment

The Elusive Recovery: iAGS 2017

Nearly nine years after the meltdown of the financial system of developed countries followed by the euro debt crisis in 2012, recovery in Europe finally started in late 2014. We expect that economic growth is going to slow down in the EU in 2017 (1.6% after 1.9 % in 2016) and in 2018 (1.5%) as tailwinds are turning into headwinds. Brexit is likely to hit UK growth and will have negative, but limited, contagion effects to the rest of the EU. Oil prices are up again and not much more can be expected in terms of competitiveness gains through the exchange rate channel. More importantly the slowdown of international trade and of emerging countries’ growth is weakening external demand to the EU and hence another positive factor is waning. [First paragraph

Stable finance in an unstable world: Chapter 5

Previous chapters have addressed the need for a a different policy mix in Europe, with a greater emphasis on fiscal policy and for policies to address imbalances within, in particular, the Euro Area. There is a third economic policy area in which reform is under way, but in Europe needs to intensify its efforts and make careful, evidence-based choices: finance. The specific features and dysfunctionalities of economic governance in Europe have exacerbated the crisis but this, it should not be forgotten, was originally triggered by problems in the financial sector. Since then national governments, not only in Europe but across the world, have been struggling to establish a sensible regulatory framework for the financial sector, one that permits, even promotes, low-cost lending for real investment and maintains an efficient payments system, while avoiding the pathologies that have caused instability and rising inequalities. Because of the transnational nature of the financial sector, the EU-level has also been heavily involved in developing the regulatory framework. The two main “building sites” are Banking Union, on which considerable progress has already been made, and the incipient Capital Markets Union. In this concluding chapter we first consider the problem of non-performing loans and discuss the policy options availbe for addressing the problem. We then turn to Capital markets Union, describing the initiatives under discussion, with a focus on proposals to reactivate the securitization market in Europe

Stable finance in an unstable world: Chapter 5

Previous chapters have addressed the need for a a different policy mix in Europe, with a greater emphasis on fiscal policy and for policies to address imbalances within, in particular, the Euro Area. There is a third economic policy area in which reform is under way, but in Europe needs to intensify its efforts and make careful, evidence-based choices: finance. The specific features and dysfunctionalities of economic governance in Europe have exacerbated the crisis but this, it should not be forgotten, was originally triggered by problems in the financial sector. Since then national governments, not only in Europe but across the world, have been struggling to establish a sensible regulatory framework for the financial sector, one that permits, even promotes, low-cost lending for real investment and maintains an efficient payments system, while avoiding the pathologies that have caused instability and rising inequalities. Because of the transnational nature of the financial sector, the EU-level has also been heavily involved in developing the regulatory framework. The two main “building sites” are Banking Union, on which considerable progress has already been made, and the incipient Capital Markets Union. In this concluding chapter we first consider the problem of non-performing loans and discuss the policy options availbe for addressing the problem. We then turn to Capital markets Union, describing the initiatives under discussion, with a focus on proposals to reactivate the securitization market in Europe