The recently approved labour market reform in italy is clearly inspired by the danish flexicurity model. However, despite the noble intention and some improvements, the reform is failing to bring the long- hoped-for change, especially regarding the dualisation of the labour market and the universalisation of welfare provision.
Topic:
Economics, International Trade and Finance, Markets, Regional Cooperation, and Financial Crisis
Kevin English, Xenia Menzies, Jacob Muirhead, and Jennifer Prenger
Publication Date:
09-2012
Content Type:
Policy Brief
Institution:
Centre for International Governance Innovation
Abstract:
The 2007–2009 global financial crisis demonstrated that the world required a much stronger framework for cooperation on financial and economic issues. In September 2009, G20 heads of state responded to this need at the Pittsburgh G20 Summit with the “Framework for Strong, Sustainable and Balanced Growth” (the Framework). The MAP was created to both monitor and support G20 countries in their follow- through on commitments made under the Framework.
Topic:
Economics, Globalization, International Organization, International Trade and Finance, Markets, Global Recession, and Financial Crisis
This paper considers the relevance of the Bretton Woods system for the prospects of reform of the international monetary system and in the context of the ongoing euro area financial crisis. It explores the challenges that must be met in attempting to reform the present international monetary system and euro area policies. After considering what resonates, and what does not, from the Bretton Woods regime of fixed exchange rates, it examines some of the key lessons from that era. The paper concludes that policy makers at Bretton Woods promised too much in terms of the stability and durability of the policy regime, and did not give sufficient thought to how the arrangement devised in the 1940s would actually function. They failed to instill the logic of collective action among their members. In particular, the Bretton Woods system failed because the agreement paid virtually no attention to governance issues. Finally, in terms of the current situation in the euro zone, policy makers have failed to recognize that the problems are not purely economic; domestic political considerations are important too. A political-economy approach is required for the design of new international monetary arrangements. The same principles apply today when we contemplate the survival of the euro zone. Politicians need to be more realistic and less ambitious, lest they create the preconditions for the next global crisis.
Topic:
Economics, Global Recession, Financial Crisis, and Governance
This chapter supplies, for the first time, a table that contains all 56 episodes of hyperinflation, including several which had previously gone unreported. The Hyperinflation Table is compiled in a systematic and uniform way. Most importantly, it meets the replicability test. It utilizes clean and consistent inflation metrics, indicates the start and end dates of each episode, identifies the month of peak hyperinflation, and signifies the currency that was in circulation, as well as the method used to calculate inflation rates.
Topic:
Economics, Globalization, International Trade and Finance, Markets, Monetary Policy, and Financial Crisis
This paper analyzes two claims that have been made about the Target2 payment system. The first one is that this system has been used to support unsustainable current account deficits of Southern European countries. The second one is that the large accumulation of Target2 claims by the Bundesbank represents an unacceptable risk for Germany if the eurozone were to break up. We argue that these claims are unfounded. They also lead to unnecessary fears in Germany that make a solution of the eurozone crisis more difficult. Ultimately, this fear increases the risk of a break-up of the eurozone. Or to paraphrase Franklin Roosevelt, what Germany should fear most is simply its own fear.
Topic:
Economics, Regional Cooperation, Monetary Policy, and Financial Crisis
There is currently no universal framework governing capital controls. As a result, a conflict has arisen due to the different approaches taken by various international organizations and many international investment agreements (IIAs). In particular, the International Monetary Fund (IMF) -- established to manage the international financial system -- preserves national autonomy over capital controls when such measures are deemed necessary; in contrast, IIAs, and especially bilateral investment treaties (BITs) -- crafted primarily to protect investors -- typically do not allow for the imposition of restrictions on capital outflows associated with foreign investments for balance-of-payments reasons.
Topic:
Development, Economics, International Monetary Fund, Foreign Aid, Foreign Direct Investment, and Financial Crisis
GDP expanded by 11% on the quarter in Q1 in seasonally adjusted terms, recovering strongly after contracting by more than 10% on the same basis in Q4 when flooding decimated the manufacturing sector. But compared with a year earlier, the economy expanded by just 0.3% in Q1, illustrating the scale of the catastrophe.
Topic:
Economics, International Trade and Finance, Markets, Foreign Direct Investment, and Financial Crisis
The German economy is clearly slowing in the face of the latest phase of the Eurozone crisis. We expect the impact of the crisis on business investment and exports to cause the economy to contract in Q2 before recovering slowly in H2. As a result, GDP growth is now forecast to slow to 0.7% in 2012 overall from 3.1% last year, before accelerating to 1.4% in 2013.
Topic:
Economics, Industrial Policy, Markets, and Financial Crisis
GDP fell by a larger than expected 1% on the quarter in 2012Q1 according to initial data released in mid-May. As a result, we now expect GDP will fall 1.1% in 2012. On the political side, the government has avoided a snap election by surviving a confidence vote on 27 April. However, it will find it harder to stick to its austerity plans as its majority was weakened by the vote. Under current policies, we now expect the fiscal deficit to rise to 3.6% of GDP in 2012 from 3.1% in 2011 due to the weakness of the economy.
Topic:
Democratization, Economics, Government, International Trade and Finance, Politics, and Financial Crisis