Turkey’s annual inflation rate hit 36.1% in 2021, the highest in President Erdogan’s 19 years in power. In the meantime, the Lira has lost more than 40% of its value. Maria Demertzis sits down with Elina Ribakova, Deputy Chief Economist of the Institute of International Finance, and Refet Gurkaynak, Professor of Economics at Bilkent University, to discuss the circumstances that have contributed to these developments and the outlook for Turkish economy.

AI is fundamentally changing the economy, it has the power to improve workers’ experience if AI uptake is done well, or it can create new inequalities depending on workers’ educational level. Giuseppe Porcaro and Mario Mariniello are joined by Teemu Roos, AI expert and founder of the online course Elements of Artificial intelligence. They talk about how AI education can improve work in Europe, Teemu’s AI course, and how educational systems can foster a more equal society.  This podcast was produced within the project “Future of Work and Inclusive Growth in Europe“, with the financial support of the Mastercard Center for Inclusive Growth.

2022 marks the 50th anniversary of the normalisation of diplomatic relations between Japan and China. As the world’s third largest economy, Japan cannot neglect the importance of economic and trade relations with China, despite tensions between two countries. How does Japan manage its economic proximity with China under the circumstances? Can Europe learn from Japan when it comes to juggling close economic relations with China when relations are bad? Giuseppe Porcaro and Alicia García-Herrero are joined by Yoshikazu Kato, Director of Trans-Pacific Group Institute and Research Fellow at Rakuten Securities Economic Research Institute, to talk about how Europe is seen by Japan and China, what Europe can learn from Japan’s economic relations with China and to explore the possibility of a common approach to China.  This episode is part of the ZhōngHuá Mundus series of The Sound of Economics. ZhōngHuá Mundus is a newsletter by Bruegel, bringing you monthly analysis of China in the world, as seen from Europe. Sign up now to receive it in your mailbox!

Happy New Year and welcome back to The Sound of Economics! In this first episode of 2022, Guntram Wolff is joined by Irene Tinagli MEP, Chair of the Committee on Economic and Monetary Affairs of the European Parliament to discuss what dominated European economic policy making in 2021 and what to expect from the coming year, in terms of both economic outlook and key challenges.

Following Bruegel’s end-of-year tradition, Giuseppe Porcaro invites Maria Demertzis, André Sapir and Guntram Wolff to review 2021 in economic policy and beyond, especially in pandemic preparedness, inflation as well as geopolitics. The guests also each introduce a book that has marked them this year and finally, their hopes and wishes for the upcoming 2022. Book list: Graeber, D. and David W. (2021) The Dawn of Everything: A New History of Humanity. Farrar, Straus and Giroux. Henrich, J. (2021) The Weirdest People in the World: How the West Became Psychologically Peculiar and Particularly Prosperous. Penguin. Perlroth, N. (2021) This Is How They Tell Me the World Ends: The Cyberweapons Arms Race. Bloomsbury Publishing. Ridley, M. (2020) How Innovation Works. HarperCollins.

Economic orthodoxy argues that the more connected two countries are, the less likely it is for conflict to arise. However, economic theory is starting to change regarding this premise. Guntram Wolff is joined by Mark Leonard, director of the European Council of Foreign Relations, to discuss his new book: The Age of Unpeace: how connectivity causes conflict. In his new book, Leonard argues a rather new and unique point: living in a globalised world creates new vulnerabilities due to this interconnection, and thus gives rise to unpeace. Guntram and Leonard explore how connectivity has caused fragmentation, the concept of unpeace, how we've gotten here, and what the EU should do moving forward.

This episode is part of the ZhōngHuá Mundus series of The Sound of Economics. ZhōngHuá Mundus is a newsletter by Bruegel, bringing you monthly analysis of China in the world, as seen from Europe. Sign up now to receive it in your mailbox! 2021 has been an eventful year for China and the world, to say the least. Bruegel has been following China's economic developments with our monthly China Newsletter ZhōngHuá Mundus, and in this last episode of the year, we feel the need to provide a bigger picture of its macroeconomic outlook. Sitting in Shanghai, J.P. Morgan’s Chief China Economist Haibin Zhu joins Giuseppe Porcaro and Alicia García-Herrero for a summary of China’s economic activities in the past year and what to expect in the future, namely the impacts of ‘common prosperity’ narrative, market regulations, pandemic restrictions and decarbonisation.

The Washington Consensus, first devised in 1989, is an economic paradigm that was reflected in the prevailing economic thinking as well as policy recommendations. However, as the world faces more fragilities and shocks than it used to, one might start wondering whether we should go further to address the acute and chronic issues that threaten the resilience of our societies. Economic orthodoxy might be shifting. In this episode, Thomas Wieser joins Maria Demertzis and André Sapir to talk about his recent report for the G7 'Global Economic Resilience: Building Forward Better' in which the authors present a new economic agenda, the Cornwall Consensus, to address the risk to economic resilience: environmental and health, and geo-political and socio-economic.

In this episode of The Sound of Economics Live, Bruegel’s own Simone Tagliapietra is joined by Li Shuo, Diederik Samsom and Laurence Tubiana to contribute to the global stocktake of the climate summit, to foster a clearer understanding of the game changers and the missed opportunities of the summit. Furthermore, they foster a fresh debate on what should be the next steps for global climate action after Glasgow.

Is technology change neutral? This question is essential in the discussion under the scope of the future of work. In this episode, Bruegel’s own Giuseppe Porcaro and Mario Mariniello speak to David Spencer about the nature of technology, its impact on the quantity and quality of work, the cost of the technological transition and how to make sure it benefits everyone. This podcast was produced within the project “Future of Work and Inclusive Growth in Europe“, with the financial support of the Mastercard Center for Inclusive Growth.

In this episode of The Sound of Economics, political theorist and historian Luuk van Middelaar joins us to talk about his latest book 'Pandemonium'. He argues that the COVID-19 pandemic is a test of the European Union's resilience, and its response demonstrates the union’s enduring strength and how it has learnt to deal with real-world events. Bruegel's Maria Demertzis and Guntram Wolff sit down with the author to discuss how and why the EU has stepped up in the wake of the pandemic and the journey it has taken from regulatory body to geopolitical actor.

This episode is part of the ZhōngHuá Mundus series of The Sound of Economics. ZhōngHuá Mundus is a newsletter by Bruegel, bringing you monthly analysis of China in the world, as seen from Europe. Sign up now to receive it in your mailbox! A wave of government regulations is being imposed on China’s digital sector, from gaming platforms to GDPR-like privacy regulations, to a draft regulation cracking down on recommendation algorithms. In the meantime, we have also seen a wave of crackdowns on big tech, from Jack Ma of Alibaba, to the case of Didi. What is going on in China's digital space? What is the general direction going forward? In this episode Giuseppe Porcaro is joined by Bruegel senior fellows Alicia García-Herrero and Mario Mariniello and by guest speaker Rui Ma, creator of Tech Buzz China which educates investors, funds and entrepreneurs on Chinese tech companies. 

Bruegel Director Guntram Wolff and Senior fellow Alicia García-Herrero welcome Bernd Lange MEP, Chair of the European Parliament's committee on International Trade to talk big issues in EU trade policy: EU-US trade relation, how to deal with China, strategy on the WTO as well as what trade can achieve in the area of climate change and human rights.

With COP26 around the corner, Bruegel Director Guntram Wolff hosts Italy's Minister for Ecological Transition Roberto Cingolani. In this live episode they discuss what the Italy G20 Presidency would like to see from Glasgow: the need for adaptation and mitigation, adequate financing of the transition for the most vulnerable and the need to focus on measuring data and metrics. 

The pandemic and subsequent downturn have seen EU countries deploy unprecedented fiscal support, while the EU as a whole complemented this with an architectural innovation in the form of the Next Generation EU fund. As European economies begin to recover, is it time to return to pre-pandemic fiscal rules or is it time to reform them? If yes, then what should be changed and how? Bruegel’s Deputy director Maria Demertzis takes a deep dive with Senior fellow Zsolt Darvas and Rolf Strauch, Chief economist of European Stability Mechanism.

This episode is part of the ZhōngHuá Mundus series of The Sound of Economics. ZhōngHuá Mundus is a newsletter by Bruegel, bringing you monthly analysis of China in the world, as seen from Europe. Sign up now to receive it in your mailbox! The concept of “common prosperity” has deep roots in the Chinese Communist Party. It was already used in the 1950s and the late 1970s under different leaderships. On August 17 2021, President Xi Jinping highlighted this concept again, calling for China to achieve "common prosperity", seeking to narrow a yawning wealth gap that threatens the country's economic ascent and the legitimacy of Communist Party rule. Since then, there have been simultaneous crackdowns on business sectors and individuals, many of which fall under the umbrella of ‘common prosperity’. Why is this term being brought up again? Why now? What policies have followed? What does the regime want to achieve? Giuseppe Porcaro is joined by Bruegel Senior fellow Alicia García-Herrero and Minxin Pei, Professor of Government at Claremont McKenna College and a non-resident senior fellow at the German Marshall Fund of the United States to discuss.

Today, work is often segregated by gender -- with great ramifications for women across the world. Will increased use of technology decrease or increase current discrepancies? What can we do today in our schools and workplaces to help women in the future? Bruegel's own Giuseppe Porcaro spoke to Bruegel Research Fellow Laura Nurski and the Technical University of Vienna's Professor Sabine Theresia Köszegi about the future of work and gender. Together, they explore the contemporary challenges women face in the workplace, and the potential for solutions in the future. Want to learn more about gender and the future of work? In this podcast, Sabine recommends the UNESCO report "I'd blush if I could" closing gender divides in digital skills through education." You can also learn more about our Future of Work project at our website, https://www.bruegel.org/the-future-of-work-and-inclusive-growth-project/

Past crises and consolidation episodes have resulted in major public investment cuts. However, in order to meet the European Union’s climate goals, the additional public investment needed is between 0.5 percent and 1 percent of GDP annually during this decade. How does the EU grapple with just how far-reaching the economic implications of the green transition will be? In a paper presented at the recent ECOFIN in September, Bruegel Director Guntram Wolff and Senior fellow Zsolt Darvas advocate for a ‘green golden rule’, that exempts net green public investment from the debt and deficit rules of the Stability and Growth Pact. They explain more in detail with Yuyun Zhan in today’s episode. Read more: Darvas, Z. and G. Wolff (2021) ‘A green fiscal pact: climate investment in times of budget consolidation’, Policy Contribution 18/2021, Bruegel

Wholesale gas prices have reached record highs in the past months, leaving EU governments scrambling for emergency aid to help households cope with their rising bills. However, this is not only about energy: though its origins might be environmental, there are diplomatic, social and economic consequences for governments and citizens. And less than two months after the EU’s bold ‘Fit-for-55’ climate initiative, a gas crisis is threatening the EU’s green agenda. In this episode of The Sound of Economics, Giuseppe Porcaro hosts Bruegel scholars Simone Tagliapietra and Georg Zachmann on the back of their recent blog post on the price of electricity. Recommended readings: Rethinking the security of the European Union’s gas supply (2016) Is Europe’s gas and electricity price surge a one-off? (2021)

On 15 September Ursula von der Leyen, President of the European Commission, delivered the State of the Union address before the European Parliament. She took stock of efforts of the past year to tackle the COVID-19 pandemic and presented priorities for the year ahead, addressed the most pressing challenges and propose ideas for shaping the future of the EU, from NextGenerationEU to the European Green Deal and Europe’s Digital Decade. In this episode of The Sound of Economics Live, Giuseppe Porcaro hosts Grégory Claeys, Maria Demertzis and Alicia García-Herrero to evaluate the State of the Union address.

This episode is part of the ZhōngHuá Mundus series of The Sound of Economics. ZhōngHuá Mundus is a newsletter by Bruegel, bringing you monthly analysis of China in the world, as seen from Europe. Sign up now to receive it in your mailbox! As the largest global emitter of greenhouse gases, China is key to the success of the upcoming COP26 and the global effort for climate neutrality by the mid-century. Yet two months ahead of the Glasgow convention, China has yet to present a concrete policy path to become net-zero by 2060. Why is China taking so long to announce its carbon reduction plan? Giuseppe Porcaro hosts Bruegel China expert Alicia García-Herrero, climate economist Simone Tagliapietra and Dr. Michal Meidan, Director of the China Energy Research Program from the Oxford Institute for Energy Studies, to discuss climate, Chinese affairs and energy economics. 

The recovery plan gives Europe a chance to emerge stronger from the pandemic, transform the economy and create opportunities and jobs. It is important that those plans are implemented in a manner that is efficient, fair and sustainable. Bruegel Director Guntram Wolff hosts a conversation between Nadia Calviño, First Vice-President and Minister for Economy and Digitalization of Spain and Karolina Ekholm, Professor in Stockholm University and member of the Bruegel board on the state of play and outlook of the EU recovery fund. Listen in to learn more details on the Spanish programme and the risks and success factors of the recovery programme for the EU as a whole! 

Sustainable investing is gaining in popularity as socially conscious clients consider environmental, societal and governance (ESG) criteria when deciding on potential investment. As a result, the financial world is offering more ESG compatible products on the market. While well intentioned, the ability and capacity of ESG criteria in corporate disclosure to achieve climate and social goals is questionable. Bruegel Director Guntram Wolff hosts a debate between Tariq Fancy, the BlackRock executive turned ESG whistleblower, and Non-resident fellow Rebecca Christie, on whether sustainable investing will make the world a better place, and how it differs between North America and Europe. For more Bruegel research on sustainable finance, visit: https://www.bruegel.org/tag/sustainable-finance.  For Tariq Fancy’s essay, The Secret Diary of a ‘Sustainable Investor’, visit: https://medium.com/@sosofancy/the-secret-diary-of-a-sustainable-investor-part-1-70b6987fa139

In the future, what forces will cause the economy to grow and stagnate? What impact will AI and automation have on the economy? Is capitalism a sustainable economic model? Today on The Sound of Economics, we're asking the big questions. In order to find answers, our own Giuseppe Porcaro hosts Aaron Benanav, recent author of Automation and the Future of Work. Benanav argues that the "rise of the robots" may not really explain future employment crises, or our failure to move into a post-scarcity era. Meanwhile, Bruegel Research Fellow Laura Nurski adds insight from her own research at Bruegel's Future of work and inclusive growth project, and Alexis Moraitis at Lancaster University considers how advances in technology could impact the international political economy. If you want to learn more about the possible robot uprising, check out our work on artificial intelligence in the workplace, or listen to our past podcast, The Skills of the Future.

On 14 July, the European Commission finally announced a large package of measures that will make the EU the first mover in the race limit global warming, with measures targeting all sectors in a deepening and broadening of the European decarbonisation process. In this episode of The Sound of Economics, Bruegel’s Director Guntram Wolff and Bruegel Senior fellow Andre Sapir and Simone Tagliapietra walk you through the 13 proposals and hundreds of pages designed to ensure the continent meets the goal of reducing carbon emissions by 55 percent in 2030 and net zero by 2050, compared with 1990 levels. How ambitious are the goals? How should they be distributed among the citizens, businesses and countries of the EU? How stringent should a new carbon border adjustment be? Recommend readings: How to make the European Green Deal work (2019), GRÉGORY CLAEYS, SIMONE TAGLIAPIETRA AND GEORG ZACHMANN https://www.bruegel.org/2019/11/how-to-make-the-european-green-deal-work/  Fit for 55 marks Europe’s climate moment of truth (2021), SIMONE TAGLIAPIETRA https://www.bruegel.org/2021/07/fit-for-55-marks-europes-climate-moment-of-truth/ The geopolitics of the European Green Deal (2021), MARK LEONARD, JEREMY SHAPIRO, JEAN PISANI-FERRY, SIMONE TAGLIAPIETRA AND GUNTRAM B. WOLFF https://www.bruegel.org/2021/02/the-geopolitics-of-the-european-green-deal/ How to extend carbon pricing beyond the comfort zone, GEORG ZACHMANN https://www.bruegel.org/2021/04/how-to-extend-carbon-pricing-beyond-the-comfort-zone/

Here's what's clear: public spending is on the rise. Public expenditure ratios have quadrupled since 1870, and increased even more in the recent COVID-19 pandemic. Is that good or bad? What does responsible public spending look like? How should governments institute reforms in order to improve their public spending agendas? These questions are less clear. Bruegel's Director, Guntram Wolff, sits down with Former Deputy Secretary-General of OECD, Ludger Schuknecht to discuss the issues surrounding public spending in post-pandemic economies.

This episode is part of the ZhōngHuá Mundus series of The Sound of Economics. ZhōngHuá Mundus is a newsletter by Bruegel, bringing you monthly analysis of China in the world, as seen from Europe. Sign up now to receive it in your mailbox! On July 1st, 2021, the Chinese Communist Party celebrated its 100th anniversary. Today, Bruegel's Giuseppe Porcaro speaks with Bruegel Senior Fellow Alicia García-Herrero and Professor Steve Tsang, Director of SOAS China Institute at University of London about the past, present, and future of the Party. What are the Party's successes and failures? What is the "China model"? Will it ever be exported to other nations? Can the country's economic success continue? 

When COVID-19 struck last spring, European governments rapidly implemented measures to keep businesses afloat. Did those policies support productive firms that bolster the economy? Or, did the policies merely enable the survival of "zombie" firms that ought to have gone bankrupt? One year into the pandemic, Bruegel Deputy Director Maria Demertzis speaks with professors Steffen Müller, Filippo di Mauro, and Carlo Altomonte about whether or not fiscal policy has been successful throughout the pandemic, and how governments can deftly adapt their measures to revitalize their economies as more people across Europe receive COVID-19 vaccinations. Relevant event: The impact of COVID-19 on productivity: preliminary firm evidence with Carlo Altomonte, Agnès Bénassy-Quéré, Maria Demertzis, Filippo di Mauro and Steffen Müller.

‘Technological change is revolutionising the workplace’, ‘the future is automated’ and ‘a robot will be doing my work before long’ are phrases we hear a lot when it comes to discussing the impact of technological advancement on the labour market and skills. But what is the real impact of robots or AI on the workforce? And, how can we steer technological change in a direction that is labour-complementing and welfare enhancing? How can governments and businesses help workers to adapt to technological change, through reskilling and transitioning initiatives? As part of Bruegel’s Future of work and inclusive growth project, Bruegel fellow Laura Nurski and Dimitrios Pikios, ESCO Project coordinator at DG Employment, Social Affairs and Inclusion at European Commission joined Giuseppe Porcaro to talk about the risks of automation, deskilling but also the opportunities for new learning that come with technology and what policymakers can do to facilitate this.

As the only global international organisation dealing with the rules of trade between nations, the World Trade Organisation should be the place where governments sort out the trade problems they face with each other. However, in recent years, WTO members have not managed to conclude new agreements to liberalise trade in goods and services. The organisation has not played a significant role in defusing and addressing the trade conflict between the US and China. It was also largely ‘missing in action’ during the first stages of the global COVID-19 pandemic. All these lead to the conclusion that reform is necessary – whether the political will exists to re engage multilaterally and pursue it is another question. In this live podcast, Giuseppe Porcaro and Niclas Poitiers are joined by Bernard Hoekman, Professor and Director of Global Economics at the Robert Schuman Centre for Advanced Studies, European University Institute in Florence; Petros C. Mavroidis, Edwin B. Parker Professor of Law at Columbia Law School in New York and Anna Dias, Lawyer and partner at Gide Loyrette Nouel in Paris. Together they discuss what areas of reform the WTO should prioritise, and what challenges it would face. Revelant Publications: China and the WTO: Why Multilateralism Still Matters, Book by Petros C. Mavroidis and André Sapir. Avoiding a Requiem for the WTO, Article by Petros C. Mavroidis and Bernard Hoekman. *This article is part of the Revue européenne du droit (RED) issue on global governance, which you can read here. This podcast is organised together with the editorial team of RED which we thank for the support.

President Biden is visiting Brussels for the first time since his inauguration on 14 June, with great expectations by European commentators to forge a closer transatlantic cooperation.  Prior to his visit, Giuseppe Porcaro and Simone Tagliapietra are joined by Ana Palacio, Former Minister of Foreign Affairs of Spain to discuss why the two sides of the Atlantic should form a climate alliance, which are the challenges the EU and the US will have to overcome; and most importantly, if this joint cooperation would be enough to leverage the rest of the world.  Relevant publications: A transatlantic climate alliance, Opinion by Ana Palacio and Simone Tagliapietra

This episode is part of the ZhōngHuá Mundus series of The Sound of Economics. ZhōngHuá Mundus is a newsletter by Bruegel, bringing you monthly analysis of China in the world, as seen from Europe. Sign up now to receive it in your mailbox! Since 2010, the landscape of China’s largest companies has shifted away from the dominance of state-owned enterprises towards a more diverse and complex landscape with an increasing number of mixed-ownership enterprises and non-public enterprises. This evolution, however, has been far from linear with Chinese private companies facing several challenges. In this episode, SHAN Weijian, Chairman and CEO of PAG, joins Giuseppe Porcaro and Alicia García-Herrero from Hong Kong, to share his insights on how the private sector has progressed and the road ahead.

The recent forced landing of an internal EU flight to arrest opposition activist Roman Protasevich is the latest escalation by a President who is consolidating power in the wake of unrest following the disputed results of the 2020 presidential election. The EU and international community reacted with further retaliatory sanctions and a flight ban over and by Belarussian airlines. Where does EU external action go from here? This week, Bruegel Director Guntram Wolff is joined by Sławomir Dębski, Director of the Polish Institute of International Affairs (PISM), to discuss Belarus’ fractious relationship with its neighbours and put the events of the last year into the wider historical and European context.

The idea of a global corporate tax has been floating around for decades, but a US proposal for a 15% of a global minimum tax rate means the proposal is now a serious possibility. This would affect both direct and indirect taxation, broader tax policy issues, and tax administration. In this live episode of The Sound of Economics, Giuseppe Porcaro is joined by Bruegel scholars Rebecca Christie and Niclas Poitiers, to discuss the outlook of global corporate tax and its possible outcomes. Relevant publication: Christie, R. (2021) ‘International tax debate moves from digital focus to global minimum,’ Bruegel Blog, 27 May

European strategic autonomy is probably the single most used watchword in European circles, if only because of lack of consensus about what it entails. US bashing for some, a more confident and independent EU for others, the concept has well and truly moved out of the security and defence area into every area of EU policy. This is most apparent in the debate around the international role of the euro, where institutional thinking has shifted fast in the past couple of years. Is it inevitable? In this episode of The Sound of Economics, Bruegel Director Guntram Wolff is joined by Franziska Brantner, Member of the Bundestag and Europe spokesperson for Alliance 90/The Greens’ parliamentary group, to talk about sovereignty, the international role of the euro and the geopolitical repercussions of the EU’s green deal. Relevant publications: Claeys, G. and G. Wolff (2020) ‘For the euro, there is no shortcut to becoming a dominant currency’, Bruegel Blog, 13 October Claeys, G. and G.B. Wolff (2020) ‘Is the COVID-19 crisis an opportunity to boost the euro as a global currency?’ Policy Contribution 11/2020, Bruegel Or maybe you’d like to watch our event with President of the European Council ‘From playing field to player: Europe’s strategic autonomy as our generation’s goal’ on the importance of Europe’s strategic autonomy

This episode is part of the ZhōngHuá Mundus series of The Sound of Economics. ZhōngHuá Mundus is a newsletter by Bruegel, bringing you monthly analysis of China in the world, as seen from Europe. Sign up now to receive it in your mailbox! China’s growing economic power is causing great anxiety in the West: European regulators are tightening the rules on takeovers by Chinese state-owned giants, while the United States is imposing aggressive sanctions on leading Chinese technology firms such as Huawei, ByteDance (TikTok) and Tencent (WeChat). In this episode of The Sound of Economics, Bruegel’s Alicia García-Herrero, Mario Mariniello and Giuseppe Porcaro make the virtual trip to the enclave of Hong Kong, where they are joined by Angela Huyue Zhang, an expert on Chinese law and the author of “Chinese Antitrust Exceptionalism: How the Rise of China Challenges Global Regulation”. She draws on her experience of examining how Chinese exceptionalism, as manifested in the way China regulates and is regulated, is reshaping global antitrust regulation to impose extraterritoriality and counter western sanctions and influence.

IMF Chief Economist Gita Gopinath joins Bruegel Director Guntram Wolff for this Live recorded session. They were able to discuss the uneven recovery from the pandemic. In the latest World Economic Outlook, the IMF warns that even though the global economy is on firmer ground, recoveries are diverging dangerously across and within countries, as economies with slower vaccine rollout, more limited policy support, and more reliance on tourism do less well. Global prospects remain highly uncertain one year into the pandemic. The outlook depends not just on the outcome of the battle between the virus and vaccines—it also hinges on how effectively economic policies deployed under high uncertainty can limit lasting damage from this unprecedented crisis. Bruegel would like to thank the International Monetary Fund for co-hosting this recording. This podcast was recorded with a live audience on clubhouse. Follow The Sound of Economics club on Clubhouse for the latest and regular rooms and high level policy conversations on everything from geoeconomics to energy and climate change.

What is a central bank digital currency (CBDC)? How is it different from the money in a private bank account, or from cryptocurrencies? What do consumers stand to gain from CBDCs? Have cryptocurrencies enabled the creation of the technology needed to guarantee anonymity, privacy and security? To debunk the myths and get to the bottom of the hows and the whys of CBDCs, this week Giuseppe Porcaro is joined by Bruegel Deputy Director Maria Demertzis and Senior Fellow Gregory Claeys who will tell us just how likely digital currency is to replace the money under our mattress.   Relevant publications and event: Demertzis, M. (2021) ‘Central bank currencies going digital’ Claeys, G. and M. Demertzis (2019) ‘The next generation of digital currencies: in search of stability’, Policy Contribution, European Parliament Disruption or transformation: the impact of a digital euro on the financial system with Guntram Wolff and Fabio Panetta See more relevant Bruegel research on Digital Currencies.

Before the pandemic, Africa was experiencing unprecedented economic growth and poverty reduction. While many economies have faced disruption around the globe, emerging economies face an even tougher challenge because they lack the tools at the disposal of developed countries, whether that be vaccines, macroeconomic liquidity or the ability of the labour market to work from home.  The global nature of the pandemic requires a global response. This January, Bruegel Director Guntram Wolff and Vera Songwe, Executive Secretary of the Economic Commission for Africa were appointed by the Italian G20 Presidency to the High Level Independent Panel on financing the global commons for pandemic preparedness and response, tasked with identifying gaps in the financing system for the global commons for pandemic prevention, surveillance, preparedness and response; and proposing actionable solutions to meet these gaps on a systematic and sustainable basis. In this episode of The Sound of Economics, Vera shares her insight on how Africa has been handling the spread of COVID-19 and its economic implications. Together they discuss how to ensure necessary financing available to all, that can ensure that the world is better prepared for the next pandemic. 

In a recent set of two Bruegel publications Giuseppe Porcaro, Emmanuel Mourlon-Druol, Enrico Bergamini and Francesco Papadia set out to understand exactly how europeanised public debate in national conversations actually is. With no quantitative indicators, they used a whole set of 'imperfect proxies' such as analysis of national newspapers to give them additional elements alongside the voters turnout, and existing eurobarometers surveys to understand just how strong citizens’ attachment to the European Union is. In this episode of The Sound of Economics LIVE, Giuseppe and Emmanuel are joined by two guests who with hands on experience in finding this 'European public sphere': Jaume Duch Guillot, the Spokesperson and Director General for Communication at the European Parliament, and Mick ter Reehorst, founder of 'Are We Europe', a pan-European publication that focuses on 'border-breaking' stories. Relevant publications: Bergamini, E. and E. Mourlon-Druol (2021) ‘Talking about Europe: exploring 70 years of news archives’, Working Paper 04/2021, Bruegel Papadia, F., E. Bergamini, E. Mourlon-Druol and G. Porcaro (2021) ‘Interest in European matters: a glass three-quarters full?’ Working Paper 05/2021, Bruegel

This episode is part of the ZhōngHuá Mundus series of The Sound of Economics. ZhōngHuá Mundus is a newsletter by Bruegel, bringing you monthly analysis of China in the world, as seen from Europe. Sign up now to receive it in your mailbox! A digital currency has been a heated discussion among central banks around the globe, and China is no exception. Where does Renminbi stand in the debate, what's next and what would be the implications of a digital yuan? Professor ZHU Min, Chair of the National Institute of Financial Research at Tsinghua University and former Deputy Managing Director of the International Monetary Fund, shares his insight with Bruegel Director Guntram Wolff and Senior Fellow Alicia García-Herrero. Relevant event: Disruption or transformation: the impact of a digital euro on the financial system with Guntram Wolff and Fabio Panetta

Recent sanctions and counter-sanctions between the EU and China have put the future of the Comprehensive Agreement on Investment (CAI) in doubt. Where do the parties go from here? In this episode of the Sound of Economics, Bruegel Director Guntram Wolff is joined by Mikko Huotari, Executive Director of MERICS - Mercator Institute for China Studies, to talk about the future of the agreement, the geopolitics at play and the role of the United States.

This is a very special moment for space exploration. The beginning of April will see the maiden flight of the first helicopter to another planet. The Artemis accords will mean that man will be back on the moon before long. The European Space Agency is building Daedalus, the first robot that will crawl inside lunar caves. The United Arab Emirates and India have successfully entered Mars’ orbit on their first try. Elon Musk has just stated that he will land his starship there before 2030. We are in the midst of a new space race, this time not as a proxy of the Cold War of the 60s, but as a multiplication of the actors, both private as well as state actors across the globe enter the realm of space. This week, Giuseppe Porcaro host of The Sound of Economics (and self acclaimed 'space geek') and Reinhilde Veugelers, senior fellow at Bruegel, have the pleasure of hosting Michel Praet, Head of the European Space Agency (ESA)’s Brussels Office, Jérôme Béquignon and Eleni Paliouras, also from ESA’s EU Relations Office for this episode. They discuss the position of the European Space sector in this brave new world, what the consequences are for industrial and innovation policy, and also take a closer look at the institutional set up which should foster this innovation. A transcription is available for this episode. Disclaimer: Due to the COVID-19 pandemic, all our podcasts are recorded remotely. We apologise in advance for the sound quality and thank you for your understanding.

Women are less financially literate than men. But does this gap reflect a lack of knowledge or a lack of confidence? To find out Maria Demertzis, deputy director of Bruegel is joined by Annamaria Lusardi, Professor of Economics and Accountancy at the George Washington University and non-resident fellow at Bruegel and Maarten van Rooij, senior economist at the Dutch Central Bank in The Sound of Economics. Annamaria and Maarten explain their findings in a recently published paper that about one-third of the financial literacy gender gap can be explained by women’s lower confidence levels. Relevant publication: Bucher-Koenen F., R. Alessie, A. Lusardi and M. Rooij (2021) ‘Fearless woman: financial literacy and stock market participation’.

Pandemic aside, the past year has seen renewed discussions in Europe on transparency and good governance as the EU takes an unprecedented role in health policy and procurement and in the creation of common debt.  As part of an ongoing effort to capture a wide range of views from the European Parliament, this week in The Sound of Economics Guntram Wolff talks to Vice President of Renew Europe and MEP for Hungary, Katalin Cseh to discuss all things governance, human rights, and transparency of vaccine purchasing.  

Maria Demertzis and Nicola Vegi join Giuseppe Porcaro to talk about their recent research on low interest rates, declining productivity growth and how to tackle this. In both Europe and the United States, interest rates have been declining for more than fifteen years. For much of this period, real interest rates have been negative and they are expected to remain negative for at least another decade. The literature associates this decline in interest rates with a similarly protracted decline in productivity. But the decline in productivity appears paradoxical given major technological advances. The structural factors behind the downward pressure on interest rates imply that macroeconomic policy will have a reduced role in managing aggregate demand. Monetary policy in the euro area will be more about preventing financial fragmentation and less about stimulating demand. Equally, fiscal policy will have more of a supporting rather than stimulating role. Tackling the structural decline in market dynamism and therefore in real rates will require structural policies to reduce market power globally and ensure the creation of capital markets in the EU.

This podcast episode is part of Bruegel’s macroeconomic outlook series of The Sound of Economics, in which we bring you regular analysis of all things macro and fiscal policy. This February, the European Commission published the Winter 2021 Economic Forecast with the estimation of a 3.7% increase in GDP in the EU in 2021. While this means a recovery from the pandemic, economic uncertainty still remains significant. On the other side of the globe, the Biden administration has announced a $1.9 trillion fiscal package. Would this result in inflation risks? How will this affect European economies? And, what fiscal intervention is needed in the euro area? Maria Demertzis, Deputy director of Bruegel, is joined by Elina Ribakova, Deputy Chief Economist at the Institute of International Finance, Christian Odendahl, Chief economist at the Centre for European Reform and Grégory Claeys, senior fellow at Bruegel to discuss the Commission forecast, recent US fiscal package and their insights of the macroeconomics outlook in the EU and globally. Relevant publications: Demertzis, M. (2021) ‘A K-shaped recovery and the role of fiscal policy’ Claeys, G. and M. Demertzis (2021) ‘The productivity paradox: policy lessons from MICROPROD’, Policy Contribution 01/2021, Bruegel Demertzis, M., M. Domínguez-Jiménez and A. Lusardi (2020) ‘The financial fragility of European households in the time of COVID-19’, Policy Contribution 2020/15, Bruegel

This episode is part of the ZhōngHuá Mundus series of The Sound of Economics. ZhōngHuá Mundus is a new newsletter by Bruegel, bringing you monthly analysis of China in the world, as seen from Europe. Sign up now to receive it in your mailbox! The middle-income trap describes a situation in which a country, having attained a certain income level, gets stuck there (due to given advantages). The high-income trap is of a similar nature, because although the positioning of these economies might be more advantageous to begin with, they find it difficult to promote innovation in manufacturing or upgrade to higher value-added services to remain competitive and provide benefits to a wider spectrum of society. In this episode of The Sound of Economics, Giuseppe Porcaro and Alicia García-Herrero are joined by Syaru Shirley Lin, Compton Visiting Professor in World Politics at the Miller Center of Public Affairs at the University of Virginia. They discuss the middle/high-income trap in East Asia, and especially in China. Is the high-income trap different between East Asia and Western Europe, especially in terms of their economic relationship with China? How has COVID-19 changed the economic landscape?