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861. Economic Survey of Poland, 2004

Publication Date:
06-2004
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Poland has made impressive progress in the transformation of its economy and the accession to the European Union on 1st May 2004 marks another historical event. It follows 15 years of profound change and accomplishment. More than 75 per cent of GDP is now produced in the private sector, the economy is well integrated with those of western European nations and inflation has been brought down to low levels. After an initial fall, output has been growing continuously for more than 10 years and, on average, Poles are much better off now than they were then. However, the striking drop in employment since 1998 is suggestive of serious remaining problems. To address these, much more needs to be done, notably in terms of raising productivity, expanding employment and increasing per capita income, which is 41 per cent of OECD levels.
Topic:
Development and Economics
Political Geography:
Europe and Poland

862. Economic Survey of the Netherlands, 2004

Publication Date:
05-2004
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
The economic downturn in the Netherlands, like the boom that preceded it, has been more marked than in most other European countries. This is partly attributable to greater exposure to international trade, especially with the US, and to greater sensitivity to international stock price movements. But there are also some structural policies – pension fund regulation, housing and wage setting institutions – that have undermined economic efficiency and contributed to the amplitude of the cycle. Furthermore there has been a marked deterioration in public finances, part of which is structural. Longer term growth trends too are unfavourable. In view of these developments, the main challenges are to reform those policies that have reduced efficiency and increased volatility, put public finances on a sustainable path, and, most importantly, increase trend growth by increasing both employment and productivity.
Topic:
Agriculture, Economics, Environment, Human Rights, International Organization, and Political Economy
Political Geography:
Europe and Netherlands

863. Is The Corporate Loan Market Globally Integrated? A Pricing Puzzle

Author:
Mark Carey and Gregory P. Nini
Publication Date:
08-2004
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
We offer evidence that interest rate spreads on syndicated loans to corporate borrowers are economically significantly smaller in Europe than in the U.S., other things equal. Differences in borrower, loan and lender characteristics associated with equilibrium mechanisms suggested in the literature do not appear to explain the phenomenon. Borrowers overwhelmingly issue in their natural home market, and bank portfolios display significant home “bias.” This may explain why pricing discrepancies are not competed away, but the fundamental causes of the discrepancies remain a puzzle. Thus, important determinants of loan origination market outcomes remain to be identified, home “bias” appears to be material for pricing, and corporate financing costs differ in Europe and the U.S.
Topic:
Economics, Government, and International Trade and Finance
Political Geography:
United States and Europe

864. Benefits and Spillovers of Greater Competition in Europe: A Macroeconomic Assessment

Author:
Tamim Bayoumi, Douglas Laxton, and Paolo Pesenti
Publication Date:
04-2004
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
Using a general-equilibrium simulation model featuring nominal rigidities and monopolistic competition in product and labor markets, this paper estimates the macroeconomic benefits and international spillovers of an increase in competition. After calibrating the model to the euro area vs. the rest of the industrial world, the paper draws three conclusions. First, greater competition produces large effects on macroeconomic performance, as measured by standard indicators. In particular, we show that differences in competition can account for over half of the current gap in GDP per capita between the euro area and the US. Second, it may improve macroeconomic management by increasing the responsiveness of wages and prices to market conditions. Third, greater competition can generate positive spillovers to the rest of the world through its impact on the terms of trade.
Topic:
Economics, Government, and International Trade and Finance
Political Geography:
Europe

865. The Optimal Degree of Discretion in Monetary Policy

Author:
Susan Athey, Andrew Atkeson, and Patrick J. Kehoe
Publication Date:
04-2004
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
How much discretion should the monetary authority have in setting its policy? This question is analyzed in an economy with an agreed-upon social welfare function that depends on the randomly fluctuating state of the economy. The monetary authority has private information about that state. In the model, well-designed rules trade off society's desire to give the monetary authority discretion to react to its private information against society's need to guard against the time inconsistency problem arising from the temptation to stimulate the economy with unexpected inflation. Although this dynamic mechanism design problem seems complex, society can implement the optimal policy simply by legislating an inflation cap that specifies the highest allowable inflation rate. The more severe the time inconsistency problem, the more tightly the cap constrains policy and the smaller is the degree of discretion. As this problem becomes sufficiently severe, the optimal degree of discretion is none.
Topic:
Civil Society, Economics, Government, and International Trade and Finance
Political Geography:
Europe

866. High-Tech Cluster Bombs: Why Successful Technology Hubs Are the Exception, Not the Rule

Author:
Scott Wallsten
Publication Date:
04-2004
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
Although success stories do exist, most high-technology cluster-development projects do little to enhance regional economic growth. The taxpayer costs for a wide array of tax incentives offered by politicians to corporations and research institutes as inducements to move facilities into their districts are rarely recouped, and often only wealthy organizations and developers benefit from the projects.
Topic:
International Relations, Foreign Policy, Democratization, and Economics
Political Geography:
Russia, Europe, and Asia

867. Go Back to Basics at the IMF

Author:
Desmond Lachman
Publication Date:
04-2004
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
The Europeans who will nominate a new managing director for the International Monetary Fund should view their task as an opportunity to return the Fund's focus to exchange-rate issues and assistance of countries in fiscal crisis.
Topic:
International Relations, Foreign Policy, Democratization, and Economics
Political Geography:
Europe

868. Holy War in Europe

Author:
Reuel Marc Gerecht
Publication Date:
04-2004
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
At an alarmingly increasing frequency, westernized Muslims and converted Christians in Western Europe are joining radical Islamic organizations to wage jihad against the United States and its allies. These young Muslim males funnel continental anti-Americanism and the alienation of centuries-old Islamic struggle against the Christian West into full-fledged rage that threatens to divide Western allies who together withstood the advance of the Islamic empires during the fifteenth and sixteenth centuries.
Topic:
International Relations, Foreign Policy, Democratization, and Economics
Political Geography:
United States, Europe, and Middle East

869. The Emptying of Russia

Author:
Nicholas Eberstadt
Publication Date:
02-2004
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
Russia, whose birth rates have declined and whose mortality rates have dramatically increased in the last several decades, faces a demographic crisis. Thus far, Russian political leaders have focused on trying to increase birth rates, but a greater sense of urgency must be applied to diminish mortality rates and to respond to health threats, including HIV/AIDS.
Topic:
International Relations, Foreign Policy, Democratization, and Economics
Political Geography:
Russia, Europe, and Asia

870. In Iraq with the Coalition of the Willing

Author:
Radek Sikorski
Publication Date:
02-2004
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
Although the American media seems to focus exclusively on American--and occasionally British--troops in Iraq, the coalition does include soldiers from Central and Eastern European nations, among others. The difficulties of forming ad hoc international coalitions for military operations, however, may lead the United States to rely in the future upon associations like NATO, which are already experienced in coordinating military operations.
Topic:
International Relations, Foreign Policy, Democratization, and Economics
Political Geography:
United States, Iraq, America, Europe, and Middle East