The Sound of Economics

European banking supervision has developed and matured by moving from being predominantly rules-based and heavily codified, to becoming more risk-focused and adaptable to rapidly changing economic circumstances. Backstage at the Bruegel Annual Meetings 2023, Giuseppe Porcaro and Nicolas Véron speak with Sharon Donnery, Deputy Governor, Central Bank of Ireland, to discuss the evolution of European banking supervision, the increasingly central role of risk assessment, as well as the prospects for the near future.

This year’s BRICS annual summit delivered the headline announcement of the group’s expansion: in January 2024, Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates will join the grouping of Brazil, Russia, India, China, and South Africa .In this episode of The Sound of Economics, Giuseppe Porcaro and Alicia García-Herrero are joined by Jim O’Neill, who coined the acronym BRIC, to discuss how the grouping has developed since its formation in 2009, the reasons behind this new expansion and the consequences it may have on the global economic and geopolitical landscape.

China has become a world leader in making and buying Electric Vehicles (EV), somehow under the radar. In fact, China today produces 54% of total EVs globally and with an even higher share for EV batteries. How did China get there? In this episode of The Sound of Economics, Giuseppe Porcaro sits down with Alicia García-Herrero and Zeyi Yang to explore China’s EV industry. Together they discuss the country’s rapid rise in the market, its advancement on battery technology, as well as geopolitical implications with a growing chorus calling for de-risking. 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!

Artificial Intelligence (AI) is changing the international balance of power. In the field of defence, beyond weaponry, AI is instrumental for various Intelligence, Surveillance and Reconnaissance (ISR) tasks at the strategic, operational and tactical level, as well as automated reasoning, logistics, training, and much more.In this episode of The Sound of Economics, Giuseppe Porcaro invites Sarah Shoker to discuss the evolving role of AI in defence. They highlight AI's role in foreign policy decision-making and prediction, but stress that balanced human judgment is crucial due to AI's limitations. Speakers urge caution in AI integration, complementing, not replacing, human reasoning. International cooperation for responsible AI norms and regulations is also needed.

The forced mass-scale shift to work-from-home during the COVID-19 pandemic has changed both employees’ and employers’ perspectives on work location, demonstrating that more jobs could be done remotely than we could have imagined before. Since we emerged from the pandemic, there is an ongoing debate about a full-scale return to office, as well as hybrid and remote work. Employee surveys across different countries consistently indicate that employees prefer to remain working remotely and do not want to return to the office full time. At the same time, many companies are trying to bring their employees back to the office. In this episode of The Sound of Economics, Giuseppe Porcaro speaks to Tatiana Andreeva about her latest work researching employers’ experience of working fully remotely during the pandemic and their approaches to returning to the office following the pandemic. Relevant publication: Mulcahy, D., and T. Andreeva (2023) ‘Employer perspectives on employee work location: collaboration, culture and control’, Working Paper 05/2023, Bruegel This was produced within the project "Future of Work and Inclusive Growth in Europe" with the financial support of the Mastercard Center for Inclusive Growth.

The Sound of Economics is bringing you a summer 2023 special series, 'Read with Bruegel.' In this series, we have the pleasure of hosting renowned authors who will discuss various economic issues based on their insightful books. We hope this conversation will inspire you to explore their books and offer you some food for thought during your summer break. In this episode of the series, Nicolas Véron welcomes Ulrich Bindseil to discuss his latest book ‘Central Banking before 1800: A Rehabilitation’. Véron and Bindeil ponder the definition of central banking, whilst analysing pre-1800 central banking and the role of numerous other institutions across the European continent. They discuss the long and colourful history of central banking before 1800, from which important lessons for today's debates can be drawn.

The Sound of Economics is bringing you a summer 2023 special series, 'Read with Bruegel.' In this series, we have the pleasure of hosting renowned authors who will discuss various economic issues based on their insightful books. We hope this conversation will inspire you to explore their books and offer you some food for thought during your summer break.In this episode of the series, Simone Tagliapietra welcomes Daniel Yergin to discuss his book ‘The New Map: Energy, Climate, and the Clash of Nations’. The global energy order is being shaken by climate change, the COVID-19 pandemic, Russia’s invasion of Ukraine and the rising tension between the West and China over critical raw materials. The discussants explore how these developments shape global supply chains, international co-operation and the course of technological advancement. They delve into what energy security might entail in different parts of the world and how varying national priorities can influence the speed of the green transition.

The Sound of Economics is bringing you a summer 2023 special series, 'Read with Bruegel.' In this series, we have the pleasure of hosting renowned authors who will discuss various economic issues based on their insightful books. We hope this conversation will inspire you to explore their books and offer you some food for thought during your summer break.In this episode of the series, Bruegel Senior fellow Maria Demertzis welcomes Agathe Demarais, Global forecasting director, Economist Intelligence Unit, to discuss her latest book ‘Backfire: How Sanctions Reshape the World Against U.S. Interests’.From Russia’s invasion of Ukraine to Iran’s COVID response and China’s cryptocurrency ambitions, they discuss how sanctions are transforming geopolitics and the global economy—as well as diminishing U.S. influence. They also exchange views on global fragmentation and how to save multilateralism and cooperation.

The Chinese economy is at a crossroads. The investment-driven growth model, which the government had relied on for the last four decades, is running out of steam. Fiscal deficits are widening and public debt is rising. Furthermore, population aging is becoming more visible and the pandemic had some scarring effects which have taken a toll both on consumer and business confidence. The very rapid rise in wages since the global financial crisis is pushing China to get ahead in its production capabilities so it will be productive enough to continue to raise wages and avoid the middle-income trap. Pressure on the economy is further intensified by the recent increase in geopolitical tensions and fears of decoupling between the US and China. As the Chinese economy continues to decelerate, the central government is investing heavily in innovation, doubling down on research and development (R&D) spending and STEM-oriented human capital. In this episode of The Sound of Economics, Giuseppe Porcaro invites Alicia García-Herrero and Robin Schindowski to discuss the challenges China faces, including three potential bottlenecks that might be hindering the translation of China’s innovation efforts into productivity growth, with a specific focus on whether Chinese growth can defy gravity. Relevant publication Schindowski, R. and A. Garcia-Herrero (2023) ‘China’s quest for innovation: progress and bottlenecks', Working Paper 08/2023, Bruegel Garcia-Herrero, A. (2023) ‘Can Chinese growth defy gravity?’ Policy Brief 14/2023, 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! This is an output of China Horizons, Bruegel's contribution in the project Dealing with a resurgent China (DWARC). This project has received funding from the European Union’s HORIZON Research and Innovation Actions under grant agreement No. 101061700.

In June 2018, the US Trump administration introduced tariffs on European steel and aluminium exports, starting a long-time dispute between the two trade partners. On 31 October 2021, the European Union and the United States agreed on temporary measures to settle their dispute over US Section 232 ‘national security’ tariffs on EU steel and aluminium products. In addition to opening tariff rate quotas for historical EU export volumes, the joint EU-US statement mandates negotiations on a “global steel and aluminium arrangements to restore market-oriented conditions and address carbon intensity”, with a deadline of 31 October 2023. As this deadline approaches, negotiators from Brussels and Washington are scrambling to get a deal. At the same time the discussions have been overlapping with the broader goals of supporting the green transition and need to be considered against the backdrop of the geopolitical rivalry between the USA and China. In this episode of The Sound of Economics, Giuseppe Porcaro invites Kimberly Clausing and David Kleimann to disentangle the ongoing negotiations and explore the legal, diplomatic and economic consequences of these negotiations through a transatlantic perspective. Relevant publication: Kleimann, D. (2023) ‘Section 232 reloaded: the false promise of the transatlantic ‘climate club’ for steel and aluminium’, Working Paper 11/2023, Bruegel This research output received funding from Pool Fund on International Energy (PIE), within the European Climate Foundation.

Today, the mitigation of climate change is one of the most important issues worldwide. However, governments also need to prioritise geopolitical resilience and economic growth when designing their industrial policies. In this episode of the Sound of Economics, Giuseppe Porcaro is joined by Philippe Aghion, Simone Tagliapietra and Reinhilde Veugelers to discuss what an innovative, European-level industrial policy would look like and how it could address all those competing objectives. They propose that the EU should engage in ‘co-opetition’ with the United States and China, which includes co-operation and maintaining economic ties to facilitate global decarbonisation most efficiently. At the same time, they argue that investing in new technologies in the EU is key to ensure its competitiveness and economic stability. Relevant publication: Aghion, P., K. Ahuja, C. P. Bown, U. Cantner, C. Criscuolo, A. Dechezleprêtre, M. Dewatripont, R. Hausmann, G. Lalanne, B. McWilliams, D. Rodrik, S. Tagliapietra, A. Terzi, C. Trasi, L. Tyson, R. Veugelers, G. Zachmann and J. Zysman (2023) Sparking Europe’s new industrial revolution: a policy for net zero, growth and resilience.

The Sound of Economics is bringing you a summer 2023 special series, 'Read with Bruegel.' In this series, we have the pleasure of hosting renowned authors who will discuss various economic issues based on their insightful books. We hope this conversation will inspire you to explore their books and offer you some food for thought during your summer break.In this episode, Giuseppe Porcaro invites Isabella Hermann and Laura Horn to discuss their latest book, ‘The Palgrave Handbook of Global Politics in the 22nd Century’. The book mirrors the format and style of existing handbooks, combining outlines and discussions of theories, structures, processes and core issues in international relations with an academic science fiction account of how these might play out over the course of the next century.

The Sound of Economics is bringing you a summer 2023 special series, 'Read with Bruegel.' In this series, we have the pleasure of hosting renowned authors who will discuss various economic issues based on their insightful books. We hope this conversation will inspire you to explore their books and offer you some food for thought during your summer break.In the first episode of the series, Bruegel Director Jeromin Zettelmeyer welcomes Martin Wolf, Chief economics commentator at the Financial Times to discuss his latest book ‘The Crisis of Democratic Capitalism’.Liberal democracy is in recession and authoritarianism is on the rise. Together, Jeromin and Martin discuss why democracy and capitalism are mutually sustaining in a world like this. They define the concept of democratic capitalism, explain why it is in a crisis and outline the proposed solutions.

China's economic ties with the Gulf States have undergone significant changes in recent years. Although historically there was little interaction between China and the Middle East, the past decade has seen a transformative shift with far-reaching implications for trade, business and politics. According to the IMF, trade between China and the Gulf countries has doubled from approximately $90 billion to $180 billion between 2010 and 2021. Additionally, the Gulf region has become a significant recipient of China's Belt and Road Initiative (BRI) funding.In this episode of The Sound of Economics, Giuseppe Porcaro sits down with Karen E. Young and Alicia García-Herrero to discuss the growing economic relations between China and the Gulf States. They mention the changing dynamics of trade, investment, currency as well as potential political alliance shifts in the region. They also discuss the changing dynamics of foreign policy with a stronger focus on energy security, leaving an opportunity of leverage for the Gulf States.

In recent years, European Commission borrowing on behalf of the European Union has changed significantly in both scale and nature. This is mainly due to the financing of the Support to mitigate Unemployment Risks in an Emergency (SURE) and NextGeneration EU (NGEU) instruments introduced in response to Covid-19.For the first time, the EU is now faced with its own debt, which will have to be paid for through the EU budget. When these programmes were launched, interest rates were at historic lows. However, they have since risen rapidly, both in absolute terms and as compared to sovereign borrowers like Germany and France.In this episode of The Sound of Economics, Maria Demertzis invites Grégory Claeys and Conor McCaffrey to discuss the causes of this rise in EU borrowing costs, as well as its wider implications on the EU budget, indicated in their latest paper.Relevant piece: Claeys, G., C. McCaffrey and L. Welslau (2023) ‘The rising cost of European Union borrowing and what to do about it’ Policy Brief 12/2023, Bruegel

China’s astounding growth has slowed down over the last decade. Despite enormous progress and investment in research and development, China’s medium-term GDP growth is expected to fall to 2.4% by 2035. The Chinese economy will not grow much larger than the US economy in the foreseeable future, which has important geopolitical implications. In this episode of the Sound of Economics, Giuseppe Porcaro is joined by Alicia García-Herrero and Max Zenglein to talk about the interconnectedness of China’s long-term growth prospect and its demographics. They discuss how economic deceleration impacts innovation, productivity and the wider society, as well as potential economic and foreign policy responses from the country’s leadership. The importance and possible effects of China’s future economic trajectory on the European Union are explored too. 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!This is an output of China Horizons, Bruegel's contribution in the project Dealing with a resurgent China (DWARC). This project has received funding from the European Union’s HORIZON Research and Innovation Actions under grant agreement No. 101061700.

Digitalisation, robotisation and automation are changing the nature of jobs at an unprecedented rate. Newly emerging technologies are not only reducing the jobs performed by humans but also transforming the way people work. EU economies are undergoing a significant transition leading to the displacement of workers across all industries and workers find themselves in need of reskilling and upskilling to switch to jobs which are high in demand. The European Commission has named 2023 as its European Year of Skills with the stated goal to give fresh impetus to lifelong learning, empowering people and companies to contribute to the green and digital transitions, while supporting innovation and competitiveness.In the new Skills series of The Sound of Economics, we discuss how we can utilise upskilling and reskilling initiatives to protect vulnerable groups of the workforce, how to build a resilient workforce and a create better functioning EU labour market. In the first episode of the series, Giuseppe Porcaro sits down with Duygu Güner and El Iza Mohamedou to discuss the critical importance of reskilling and upskilling, examining the obstacles workers face in adapting to this new reality, all while exploring the pathways to achieving a resilient workforce.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 2022, Europe managed to safeguard the security of energy supply during a turbulent time for the energy sector. Moreover, the EU industry has, also thanks to public support, remained resilient beyond expectations. As the peak of the crisis seems to be behind us, Europe now needs to assess its longer-term industrial repercussions.In this episode of The Sound of Economics, Jeromin Zettelmeyer invites Georg Zachmann and Giovanni Sgaravatti to explore the impact of energy crises on European industry and how to address these challenges. Relevant publication:Sgaravatti, G., S. Tagliapietra and G. Zachmann (2023) ‘Adjusting to the energy shock: the right policies for European industry’ Policy Brief 11/2023, Bruegel

The tech sector has become key player in the internal interconnection between economics and geopolitics. It is an essential industry that plays a critical role in shaping national security, supply chains and the consumer side of the economy. However, navigating through the geopolitical and economic challenges facing the tech industry requires an understanding of the bigger picture.In this episode of The Sound of Economics, Giuseppe Porcaro invites Alicia García-Herrero to discuss the ongoing trend of tech bifurcation between China and the US, the growing divide of two ecosystems and its implications on the world.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!

EU finance ministers met at the April 2023 informal ECOFIN meeting to discuss the reform of the fiscal governance framework as proposed by the European Commission. Bruegel researchers were asked to contribute to this discussion by providing information on the long-term fiscal needs that countries will have and how well they may be able to meet these needs. In this episode of The Sound of Economics, Maria Demertzis invites Zsolt Darvas and Jeromin Zettelmeyer to share their insights on the implications of long-term fiscal challenges facing the European Union. In their latest report, the authors identify that the pandemic and subsequent price shocks triggered by Russia’s invasion of Ukraine have increased longer-term fiscal pressures in the European Union through higher debt, higher expected real interest rates and higher public investment needs. Relevant publication: Zettelmeyer, J., G. Claeys, Z. Darvas, L. Welslau and S. Zenios (2023) ‘The longer-term fiscal challenges facing the European Union’ Policy Brief 10/2023, Bruegel This Policy Brief is a version of a paper prepared for the Working Session II of the Informal Meeting of EU Economy and Finance Ministers and Central Bank Governors, Stockholm, 29 April 2023.

The collapses in rapid succession of Credit Suisse in Switzerland along with the Silicon Valley Bank (SVB) and Signature Bank in the United States have reawakened debates on banking policy. In this episode of The Sound of Economics, Giuseppe Porcaro is joined by Silvia Merler and Nicolas Véron. Together they explore the lingering effects of the recent banking turmoil and how this controversy may nudge the EU towards better compliance with international banking capital standards. They also discuss the Commission's recently adopted bank crisis management and deposit insurance (CMDI) framework, as well as the prospects of completing a European banking union.Relevant publication:The US and Swiss messes may nudge the EU towards better international bank capital standards compliance, First glance, Nicolas Véron

Cryptocurrencies have become more popular and established in recent years. Simultaneously, crypto financial services, like lending, have also emerged.Given the increasing importance of digitalisation, it is fair to ask whether these digital decentralised services will become established and normalised. In this episode of The sound of economics, Giuseppe Porcaro invites Maria Demertzis and Catarina Martins to discuss the current and future role of decentralised finance in the financial system. Together they examine whether and how the crypto world contributes to the main objectives of the financial system: reducing search costs and financing growth.Relevant publication: Demertzis, M. and C. Martins (2023) ‘Decentralised finance: good technology, bad finance’ Policy Brief 09/2023, Bruegel

Since the end of the Chinese civil war in 1947, Africa has been crucial to China’s foreign policy. First, China supported several African liberation movements during the Cold War. Second, in November 2003, the Forum for China-Africa Cooperation (FOCAC) was created to improve cooperation between China and African states and third, Xi Jinping announced China's Belt and Road Initiative (BRI) in 2013, which aimed to reinvigorate the old silk trading route along the East African coast. Furthermore, a relatively unknown fact is that China has made significant investments in Africa's digital space.In this episode of The Sound of Economics, Giuseppe Porcaro is joined by Alicia García-Herrero and Iginio Gagliardone to talk about China’s image and digital influence in Africa. They discuss specific examples of successful and unsuccessful media narratives built by China and assess the role that Europe plays in relation to China and Africa's digital influence.Relevant publication: The Belt and Road Initiative transformation makes it a more – not less- useful tool for China Imperial Remains and Imperial Invitations: Centering Race within the Contemporary Large-Scale Infrastructures of East Africa Comparing North-South technology transfer and South-South technology transfer: The technology transfer impact of Ethiopian Wind Farms 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! This is an output of China Horizons, Bruegel's contribution in the project Dealing with a resurgent China (DWARC). This project has received funding from the European Union’s HORIZON Research and Innovation Actions under grant agreement No. 101061700.

Since the outbreak of the COVID-19 pandemic, a record number of people have begun to work from home. However, the seeming flexibility of remote positions is not without its limitations, since the spatial distribution of such roles is vastly uneven. In this episode of The Sound of Economics, Giuseppe Porcaro is joined by Fabian Stephany and Monica Stephens to explore how remote work contributes to continued urbanisation. They give special focus to the importance of digital infrastructure and the proximity of service providers, as well as the gendered dimensions of working from home and how this can affect people’s ability to work remotely. Relevant publication: The ‘anywhere’ jobs are not everywhere – they’re in cities, blog post by Fabian StephanyThis 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 March 2023, the European Central Bank (ECB) launched its quantitative tightening (QT) policy, to unwind its portfolio of assets that resulted from its quantitative easing (QE) policy of the last decade. Despite the scarce evidence on the effects of QT, it was never attempted in the Euro area. Most lessons can only be drawn from the 2017-19 experience in the United States.In this episode of The Sound of Economics, Maria Demertzis invites Grégory Claeys and Megan Greene to discuss why the ECB has decided to go down the route of quantitative tightening and what it could mean for the future of the euro area.Relevant publication: Finding the right balance (sheet): quantitative tightening in the euro area, report by Grégory Claeys, requested by the ECON Committee, European Parliament

The Critical Raw Materials Act, proposed by the European Commission on the 16 March 2023, sets clear benchmarks for domestic capacities along the strategic raw material supply chain and to diversify EU supply. In this episode of The Sound of Economics, Giuseppe Porcaro sits down with Bruegel researchers Marie Le Mouel and Niclas Poitiers to discuss critical raw materials and the role they play in the EU’s industrial policy, examining whether the proposed Act would help the bloc advance in its green and digital transformation.

When the Belt and Road Initiative (BRI) was first announced in 2013, its official objective was to improve connectivity. However, many things have happened since then, from the US-China trade war to US containment of China’s technological rise, as well as China’s much more belligerent approach to the West. How is the BRI changing in this new reality?In this episode of The Sound of Economics, Giuseppe Porcaro is joined by Alessia Amighini and Alicia García-Herrero. They share the latest findings from their research, showing that the BRI has transformed itself from an economic to a much broader strategy with a political security-oriented focus. It serves as one of several devices uniting the Global South in a new and comprehensive narrative, one with a clear anti-Western tone. Beyond the BRI, this new narrative also features cooperation in the fields of digital governance, as well as academic and cultural exchanges.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! This is an output of China Horizons, Bruegel's contribution in the project Dealing with a resurgent China (DWARC). This project has received funding from the European Union’s HORIZON Research and Innovation Actions under grant agreement No. 101061700.

What is happening with the Silicon Valley Bank? In this episode of The Sound of Economics, Giuseppe Porcaro invites Rebecca Christie and Nicolas Véron to unpack the ongoing SVB crisis and what it entails for global financial markets.

On International Women’s Day 2023, Giuseppe Porcaro is joined by Nancy Folbre, one of the pioneering economists in the area of feminist economics. Together they discuss the findings published in Folbre’s latest book The rise and decline of patriarchal systems, where she examined the contradictory effects of capitalist development. She explains why the work of caring for others is under-valued and under-rewarded in today's global economy, calling attention to the organisation of childrearing, the care of other dependants and the inheritance of assets.

Europe has survived the energy crisis in the past year; however, it is time to look forward and prepare for winter 2023-24. In this episode of The Sound of Economics, Jeromin Zettelmeyer invites Simone Tagliapietra and Ben McWilliams to present their latest paper, where they explore in detail the future of LNG imports, how much natural gas demand must be reduced to avoid crisis. They discuss the sectors which could take cuts in their energy consumption to aid in this preservation. McWilliams and Tagliapietra paint a sober picture of Europe’s gas supply-demand balance, stating that it will remain on a tightrope walk for the next two years. They also describe the strong and decisive actions that policymakers must continue to take to avoid emergency.Relevant publication:McWilliams, B., S. Tagliapietra, G. Zachmann and T. Deschuyteneer (2023) ‘Preparing for the next winter: Europe’s gas outlook for 2023’, Policy Contribution 01/2023, Bruegel

When the sanctions against Russia were first implemented, Giuseppe Porcaro invited Nicolas Véron and Elina Ribakova on The Sound of Economics to discuss the possible implications of those sanctions.On 24 February, it will be one year since the invasion of Ukraine. As this anniversary approaches, they revisit this topic to reflect on how effective the sanctions have been, its implication on the international financial and banking system and how Russia has responded to the sanctions. Check our special podcast series, War in Ukraine, which reflect on the implications of Russia's war in Ukraine in EU energy storage, macroeconomic implications, international finance system and more.

As China moves closer to fully re-emerging from three years of government imposed Covid isolation and as they begin to reintegrate with the rest of the world, economic expectations are high. Beijing’s recent pivot from its stringent zero-Covid strategy — which had long choked businesses — is expected to inject vitality into the world’s second-largest economy next year.But what will this reopening mean for the Chinese economy? How will it affect Chinese society and China’s relations with the rest of the world in areas such as energy consumption and price pressures?In this episode of The Sound of Economics, Giuseppe Porcaro is joined by Bruegel’s Alicia García-Herrero and Steven Ying, the founding Managing Partner of High Impact Capital Advisor, to discuss the global implications of China’s reopening after their Covid isolation, China’s economic outlook in 2023 and the consequences this may have for Europe and the rest of the world.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 Inflation Reduction Act (IRA) of 2022 is a milestone in US climate policy. Unfortunately, it also contains protectionist elements, such as linking green subsidies to local content requirements (LCRs). This is prohibited under WTO rules. Legislating such LCRs is a first for the United States, and a blow to the multilateral trading system.In this episode of the Sound of Economics, Bruegel director Jeromin Zettelmeyer invites Kimberly Clausing and Sébastien Jean to discuss the policies laid out in the IRA and the impact it will have on the United States and other countries. They also discuss the global responses to the act and how EU policy makers in particular should react.Our new policy brief explains what is in the IRA, the impact on the EU and other economies, and how the EU should react.

In this episode of The Sound of Economics, Giuseppe Porcaro invites Uri Dadush to discuss whether deglobalisation is happening worldwide. They discuss the impacts of this on the global economy and what it may mean for internal relations. In his recent research, Uri detailed how, despite the current bleak rhetoric surrounding deglobalisation, most countries have seen increased international integration across nearly all goods, services and factor markets. He acknowledges, however, that geopolitics could prevail over economics in the future of globalisation.Relevant publication:Dadush, U. (2022) ‘Deglobalisation and protectionism’ Working Paper 18/2022, Bruegel

It has been 60 years since the foundation of the Élysée Treaty, which was signed on the 22 January 1963. The treaty aimed to create close bilateral collaboration between France and Germany, to help reconcile past conflicts between the two countries and to allow them to emerge as one of the ‘engines’ of European integration.This year also marks the 20th anniversary of Bruegel’s concept as a Think Tank. The concept was developed jointly by Nicolas Véron and Jean Pisani-Ferry in 2003. The idea was later endorsed by French President Jacques Chirac and German Chancellor Gerhard Schröder, who jointly declared that to help “contribute to international debates on economic, financial and trade policy, France and Germany have decided to launch a European initiative for the creation of a centre for the international economy devoted to those subjects.In this episode of The Sound of the Economics, Nicolas Véron and Jean Pisani-Ferry, two Frenchmen and founders of Bruegel, invite their German colleague, Cornelia Woll, President of the Hertie School, to revisit Franco-German relations from the signing of the Élysée Treaty, discussing the importance of those relations in European integration and how to redefine them in a modern context.

While China’s property market has been a key driver of its economy, concerns around the sustainability of the sector have circulated for many years. In this episode of the Sound of Economics, Giuseppe Porcaro and Alicia Garcia-Herrero invite Yunpeng Zhang, Lecturer and Assistant Professor from University College Dublin, to discuss the country’s urban development, the misalignments of interests between local and central government and its impact on China’s economy as well as the society. 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!

For the first time in over ten years, the euro area has a new member. Croatia is the latest country to join the monetary union, starting 1 January 2023. In this episode of the Sound of Economics, Jeromin Zettelmeyer sits down with Boris Vujčić, Governor of the Croatian National Bank, to discuss the implications of Croatia’s accession, the challenges they faced during the process, and the advantages they gain by now being a part of the monetary union. As the person shepherding Croatia’s accession into the euro area, Boris Vujčić will discuss the impact euro membership will have on Croatia and give his thoughts on the past, present and future of the euro.

Russia’s invasion of Ukraine changed the course of the year 2022. In this episode of The Sound of Economics, Giuseppe Porcaro invites Maria Demertzis, André Sapir and Jeromin Zettelmeyer to unfold the impact of the war, energy crisis and inflation, European responses to these incidents, continued confrontations on the global stage and their implications on the world.Following Bruegel’s end-of-year tradition, the guests also each introduce a book, movie or TV series that resonated with them in 2022. Publications mentioned in the podcast: National fiscal policy responses to the energy crisis, Dataset by Giovanni Sgaravatti, Simone Tagliapietra and Georg Zachmann The European Commission's fiscal rules proposal: a bold plan with flaws that can be fixed, Blog by Olivier Blanchard, André Sapir and Jeromin Zettelmeyer Is the EU fiscal rules reform going in the right direction? Podcast with Grégory Claeys, Zsolt Darvas, Maria Demertzis and Jeromin Zettelmeyer Rewriting the rulebook of the EU fiscal framework, Event with Carlos Cuerpo, Karolina Ekholm, Vitor Gaspar, Alenka Jerkič, Maarten Verwey and Jeromin Zettelmeyer Santa’s book/movie/series list Chums: How a Tiny Caste of Oxford Tories Took Over the UK, book by Simon Kuper How to Be Animal, A new history of what it means to be human, book by Melanie Challenger Nights of Plague, book by Orhan Pamuk The Brexit effect: how leaving the EU hit the UK, FT Film The Swimmers, film directed by Sally El Hosaini This England, TV series directed by Michael Winterbottom, Julian Jarrold, Anthony Wilcox and Mat Whitecross Enjoy a selection of highlighted podcasts and publications to keep you informed over the winter break. We wish you a lovely holiday season and look forward to bringing you more economic analysis in the upcoming year.

ChatGPT is the latest example of technology that appears to be able to execute tasks that would have required the services of high level academics not too long ago. Similar AI initiatives are taking place across the world, which begs the question: is automation coming for knowledge work next?In this episode of the Sound of Economics, Giuseppe Porcaro invites Maria Savona, Professor of Applied Economics at the Department of Economics at LUISS University, Rome and Professor of Economics of innovation at SPRU, Science Policy Research Unit at the University of Sussex, UK, and David Autor, Ford Professor in the MIT Department of Economics, to discuss different perspectives and lessons from the US and Europe on the design of digital automation technologies and their implications for the future of work. This podcast was produced within the project "Transatlantic expert group on the future of work", with the financial support of the European Union. Its contents are the sole responsibility of Bruegel, AISBL and The German Marshall Fund of the United States and do not necessarily reflect the views of the European Union.

India has recently surpassed the United Kingdom to become the fifth largest economy in the world, standing directly behind the US, China, Japan and Germany. As its GDP growth is estimated to be between 8% to 10.5%, India is certainly rising into the ranks of stable economic growth like China succeeded to do in the 1990s.But what do these two countries have in common, and what do their bilateral relations mean for the rest of the world?In this podcast, Giuseppe Porcaro invites Alicia García-Herrero, Senior fellow at Bruegel and Jagannath Panda, Head of the Stockholm Centre for South Asian and Indo-Pacific Affairs, to discuss the growing importance of China-India relations, and why they matter for Europe and the rest of the world. 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!

95 percent of the world economy (measured by GDP) is exploring the idea of launching a central bank digital currency (CBDC), and many countries including Nigeria and China are entering into the close-to-launch or fully launched phase. But what is the hype about?In this episode of the Sound of Economics, Maria Demertzis invites Grégory Claeys and Josh Lipsky to discuss the purpose of having a CBDC from both a retail and a wholesale perspective. Particularly, they raise the geopolitical importance of CBDCs, with the example of the G7’s financial sanctions against Russia that ruled out several Russian banks from the SWIFT system and froze Russian Foreign Exchange Reserves.However, if CBDCs are largely implemented, whilst they could help the EU achieve more autonomy in international finance, they could also be used by countries to bypass western sanctions and challenge the dollar hegemony in the current international financial system.

Authoritarianism is becoming increasingly normalised in the 21st century. As anti-democratic movements take root globally in a wide range of demographic and socioeconomic groups, democracy is constantly under threat. In many countries, democratically elected autocratic movements threaten to erode the foundations of the systems they work within, aiming to sow division while offering no real change. Will this be the final retreat of global democracy?In this episode of the Sound of Economics, Giuseppe Porcaro invites Pranab Bardhan who is a Distinguished Professor Emeritus of Economics at the University of California, Berkeley and Heather Grabbe who is a senior adviser to the Open Society Foundations, to discuss democratic backsliding in the world, its economic underpinnings and what can be done to combat these challenges.

In this episode of the Sound of Economics Live, Giuseppe Porcaro invites John Murton, Johanna Nyman and Simone Tagliapietra look at what was said and decided at this year's COP27 in Egypt. What are the preliminary impressions? Are we delivering on the Paris Agreement and how efficient is COP in getting there? They discuss these and more questions while unpacking the meeting.

On 9 November, the European Commission presented its long-awaited proposal for a reformed EU economic governance framework. The proposal intends to focus on medium-term risks to debt sustainability and to allow flexibility to boost growth and investments and move away from yearly micro-management of unobservable public finance variables. Maria Demertzis invites Jeromin Zettelmeyer, Grégory Claeys and Zsolt Darvas to share their views on the reform proposal.

From cars and phones to satellite technology, semiconductors play a key role in many of our modern utilities and consumer goods. As such, semiconductors are China’s main import item and an essential component of a lot of its exports. Since the US push to restrict this trade, China has been investing heavily on its semiconductor industry, to reduce their dependence on the rest of the world. In this episode of The Sound of Economics, Giuseppe Porcaro is joined by Bruegel’s Alicia García-Herrero and Jason Hsu, a Senior Research Fellow at The Ash Centre for Democratic Governance and Innovation Harvard Kennedy School, to discuss China’s semiconductor policies, as well as its implications and lessons for Taiwan and the rest of the world. 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!

Social protection is the mechanism that addresses amongst other issues, poverty reduction, education, health, social inclusion, and empowerment. In the United States and in Europe social protections were initially designed between 1880 and 1945 with the full-time, dependent employee in mind.In this episode of The sound of economics, Giuseppe Porcaro invites Anke Hassel and Kathleen Romig to discuss the challenge that confronts the United States and Europe, in the context of a changing labour market and the increase in nonstandard work.This podcast was produced within the project "Transatlantic expert group on the future of work", with the financial support of the European Union. Its contents are the sole responsibility of Bruegel AISBL and The German Marshall Fund of the United States and do not necessarily reflect the views of the European Union.

The Internet was supposed to liberate us from powerful institutions. But the reality might be he who fights too long against dragons becomes a dragon himself. In this episode of the Sound of Economics, Giuseppe Porcaro and Fabian Stephany invite Vili Lehdonvirta to present his latest book, Cloud Empires, where he explains how Silicon Valley technologists end up recreating digital forms of the very institutions that they were trying to render obsolete. They also discuss the labour market. 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, Maria Demertzis and Grégory Claeys are joined by Ayhan Kose, Chief Economist of Equitable Growth, Finance, and Institutions (EFI) and Director of the Prospects Group at the World Bank, and co-author of the report ‘Is a Global Recession Imminent?’. Together they look at the global trends of rising inflation and slowing growth, discuss whether the world is heading into a recession; or, if a recession is inevitable, whether a soft-landing would be possible and how it could be achieved. (This podcast was recorded on 6th October 2022)

The 20th National Party Congress of the Chinese Communist Party commenced on 16 October and will run for seven days. The Congress takes place every five years and is the most important political event in the People’s Republic of China. Giuseppe Porcaro and Alicia Garcia-Herrero invite Chenggang Xu, Senior research fellow at Stanford Center on China’s Economy and Institutions to navigate the decisions that are to be taken in this gathering and whether they meet the predictions.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 rise in Chinese influence in the Western Balkans over the last decade is among the most significant geopolitical developments in Europe. As an element of Beijing’s wide internationalisation efforts to expand its global footprint, the country has been working to improve its position in several key sectors, from energy and infrastructure to culture, education and media. A lot of these investments are linked to the Belt and Road initiative. Giuseppe Porcaro and Alicia García-Herrero invite Mira Milosevich-Juaristi to help navigate the Chinese investments in the Balkans and their strategic importance and what this means for Europe. 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!