The impact of industrial robots on EU employment and wages: A local labour market approach

Francesco Chiacchio, Georgios Petropoulos, David Pichler. The authors of this working paper study the impact of industrial robots on employment and wages in six European Union countries, which make up 85.5 percent of the EU industrial robots market. In theory, robots can   […]

Income redistribution through taxes and transfers across OECD countries

Orsetta Causa, Mikkel Hermansen. This paper produces a comprehensive assessment of income redistribution to the working-age population, covering OECD countries over the last two decades. Redistribution is quantified as the relative reduction in market income inequality achieved by personal income   […]

Excess liquidity and bank lending risks in the euro area

Zsolt Darvas, David Pichler. In this Policy Contribution prepared for the European Parliament’s Committee on Economic and Monetary Affairs (ECON) as an input to the Monetary Dialogue, the authors clarify what excess liquidity is and argue that it is not a   […]

High public debt in euro-area countries: comparing Belgium and Italy

André Sapir. This Policy Contribution looks at the evolution of public debt in Belgium and Italy since 1990 and uses the debt dynamics equation to explain the contrasting evolution in the two countries in the run-up to the introduction of   […]

The European Dimension of Regional and Cohesion Policies

Daniel Gros with Roberto Musmeci and Marta Pilati This contribution analyses the state of regional convergence within the European context. It finds that different country groups have had quite different experiences following the financial crisis and that in most cases there   […]

Structural reform waves and economic growth

Pasquale Marco Marrazzo, Alessio Terzi At a time of slow growth in several advanced and emerging countries, calls for more structural reforms are multiplying. However, estimations of the short- and medium-term impact of these reforms on GDP growth remain methodologically   […]

Why so low for so long? A long-term view of real interest rates

Claudio Borio, Piti Disyatat, Mikael Juselius, Phurichai Rungcharoenkitkul. Prevailing explanations of the decline in real interest rates since the early 1980s are premised on the notion that real interest rates are driven by variations in desired saving and investment. But based on data stretching back   […]

Brahmin Left vs Merchant Right: Rising Inequality and the Changing Structure of Political Conflict

Thomas Piketty. Using post-electoral surveys from France, Britain and the US, this paper documents a striking long-run evolution in the structure of political cleavages. In the 1950s-1960s, the vote for left-wing (socialist-labour-democratic) parties was associated with lower education and lower   […]

Financial Stability Implications of Increasing Interest Rates

Daniel Gros.  Ιncreasing interest rates appear to pose little risk to financial stability at present. The basic reason is simple: Monetary policy normalisation, which comes as a reaction to the ‘normalisation’ of the economy, should not lead to a deterioration   […]

Should we care about central bank profits?

Francesco Chiacchio, Grégory Claeys, Francesco Papadia. Central banks are not profit-maximising institutions; their objectives are rather of macroeconomic nature. The European Central Bank’s overriding objective is price stability. Nevertheless, there are three good reasons to conclude that it is preferable for central   […]