The Sound of Economics

This is a summer feature of the Sound of Economics in cooperation with the Reopening Europe project. In June 2020, as Europe exited the COVID-19 Lockdown, we traveled more than 2700 kilometres through the Netherlands, Germany, France, Austria, Slovenia and Italy to collect voices from the ground as the borders were reopening. In this introductory episode, Giuseppe Porcaro chats with Michael Leigh. Their conversation was recorded in Florence on the 23rd of June. Michael is a Bruegel Senior Fellow and also Academic Director of the Masters in European Public Policy at the John Hopkins University in Bologna. Michael told him about his experience locally in Bologna and they discussed the impact of the pandemic on various levels of government and the future of Europe. Giuseppe gave Michael some insight about the journey and reveals which border was the only one on the trip where the crew were asked to produce papers.

As the Brexit negotiations are entering their final straight line, the question of trade agreements is heating up. Economists talk about the “cost of non Europe”. How much each country has gained from belonging to the EU’s single market? How much would it have missed out on if it didn’t belong to the single market?In this week’s episode, we will look at the economic impact of the EU's last enlargement and ask who benefited the most: the old 15 or the new 13 members?

In their toolkit against a pandemic that knows no borders, several EU countries have bet on new technology from our era of globalisation: digital contact tracing COVID-19 apps. But the way they've been rolled out illustrate troublesome limits to the EU digital single market.

In this episode we discuss financial fragility in European households in the time of COVID-19. Before the pandemic hit, a substantial share of households reported that they would be unable to handle a financial emergency. In some EU countries, many had savings equivalent to just a few weeks of basic consumption. Giuseppe is joined by Maria Demertzis, deputy director at Bruegel, and Anna Maria Lusardi, Academic Director of the George Washington University Global Financial Literacy Excellence Center who have authored a paper published by Bruegel on the topic What did they find out, about how households finances have been impacted by the pandemic so far? Episode's guests: Maria Demertzis, Deputy Director, Bruegel Anna Maria Lusardi, Academic Director of the George Washington University Global Financial Literacy Excellence CenterHosted by:Giuseppe Porcaro, head of outreach and governance at Bruegel

In a special live edition podcast of an event we organised recently with EU3D, we discuss how the current situation brought upon by the pandemic could shift the ‘Conference on the Future of Europe’ debate, whether EU treaty changes are back on on the agenda and what this would imply for the relation of the EU with its closely affiliated non-members.Guntram Wolff is joined by Gabriele Bischoff, Member of the European Parliament, John Erik Fossum, Professor at the ARENA Centre for European Studies, University of Oslo and EU3D coordinator Kalypso Nicolaïdis.

The response to COVID crisis necessitates a lot of cash. So will the upcoming green transition. But with Brexit, Europe lost its easy and practical access to the world’s largest financial market. So is today the right time to create a European capital markets union, with only one rule to ring them all; one rule to bind all 27 capital markets in the EU?

Since the end of May and throughout the month of June, many European Countries have lifted or loosened the lockdown measures set in place to fight the spread of the virus. One of the last measures still in place is the closure of international borders, which to some extent brought back to the memory a closed Europe, and border checkpoints, which many of our listeners that born after 1989 probably bene experienced, at least on the scale we have had. As this is somewhat an atypical and historical moment, we are going to embark in a peculiar journey, starting on Friday 12 June. Bruegel is supporting a project driving across 7 Countries and more that 2.500 kilometres to collect facts about how the border closure affected the economy and society, take a “temperature reading” of the perceptions of people, and make an analysis out of it. It is an exciting endeavour that sees Bruegel on the road, after these months of lockdown and countless zoom livestreams. It will provide a snapshot of the impact on the ground also of the European policies which we are more of a commonplace in our studies and in this podcast. You will be able to follow us on the road on the Bruegel channels, as well as the project website www.reopeningeurope.com This episode provides a background overview of the impact of the reopening on European value chains, future of work, and innovation. GuestsScott Marcus, senior fellow, BruegelNiclas Poiters, research fellow, BruegelReinhilde Veugelers, senior scholar, BruegelHostGiuseppe Porcaro, head of outreach and governance, Bruegel

The euro is, by definition an international currency. However, since being established in the late 90s the single currency has always been somewhat less than the sum of it's parts and has yet to challenge the US dollar for global dominance. Its international status declined with the euro crisis of 2008. Could the reform of the institutional setup of the monetary union that many are arguing for in the wake of the covid-19 crisis boost the euro's status as a global currency?Episode guests: Guntram Wolff, Bruegel Director Alicia Garcia Herrero, senior fellow at Bruegel Grégory Claeys, senior fellow at BruegelHosted by:Giuseppe Porcaro, head of outreach and governance at Bruegel

The pandemic is hurting emerging economies in at least three ways: by locking down their populations, damaging their export earnings and deterring foreign capital. Even if the pandemic will fade in the second half of the year, gdp in developing countries, measured at purchasing-power parity, will be 6.6% smaller in 2020 than the IMF had forecast in October. In this episode we dig into the topic and sketch the possible tools that emerging economies can use to face the liquidity crisis. The conversation presents the analysis of the authors of a Bruegel Policy Contribution the topic. Episode's guests: Alicia Garcia Herrero, senior fellow at Bruegel Elina Ribakova, deputy chief economist of the Institute for International Finance Hosted by: Giuseppe Porcaro, head of outreach and governance at Bruegel

China’s financial sector has grown massively in size and has become systemically important. In addition, it has also become much more complex with increasing systemic risk. The cyclical -beyond the structural – deceleration that the Chinese economy is undergoing is one of the key risks that the Chinese financial system is facing. At the same time, China has decided to open up its financial sector to foreign competition. What can foreign banks expect to find? Should they grab this opportunity? Giuseppe Pocarro is joined by independent economist Gary Liu and Bruegel Senior Fellow, Alicia García-Herrero.

Faced with the COVID-19 outbreak, governments have needed to act swiftly to combat the virus. Many countries currently have lockdown or measures alike in place. Yet, different countries approach the crisis in a noticeably different way. Dr. Vivian Balakrishnan, Minister for Foreign Affairs of the Republic of Singapore, join this live podcast recording and explain Singapore’s approach and the various measures taken in dealing with the COVID-19 pandemic.

COVID-19 has triggered a severe recession and policymakers in European Union countries are providing generous, largely indiscriminate, support to companies. As the recession gets deeper, a more comprehensive strategy is needed. This should be based on four principles: viability of supported entities, fairness, achieving societal goals, and giving society a share in future profits. The effort should be structured around equity and recovery funds with borrowing at EU level.In this episode we discuss the proposal for a recovery plan outlined in a recent paper by Julia Anderson, Simone Tagliapietra and Guntram Wolff which can be read here https://www.bruegel.org/2020/05/rebooting-europe-a-framework-for-a-post-covid-19-economic-recovery/ Participating to this episode:Maria Demertzis, Deputy Director, BruegelGiuseppe Porcaro, Head of Outreach and Governance, BruegelSimone Tagliapietra, Research Fellow, BruegelGuntram Wolff, Director, Bruegel

The first country to be hit by the current pandemic, China has been at the forefront of the fight against COVID-19. What have been its impacts on the Chinese economy? What does it represent, more broadly, to the global economy? Are global supply chains really starting to be put into question? Today, Giuseppe Porcaro is joined by Alicia García-Herrero and Yiping Huang, Professor of Economics and Finance at the Peking University.This podcast is a member of the Europod network.

The German Constitutional called today on the ECB to justify its bond-buying program. What does today's ruling of the German Constitutional Court mean for the ECB's QE program? Could such a decision open a precedent when it comes to contesting EU law? Today, Giuseppe Porcaro and Guntram Wolff are joined by Franz Mayer, chair of Public Law at the University of Belefield, to analyse the German Constitutional Court's ruling.This podcast is a member of the Europod network.

Without a robust healthcare system and lack of medical equipment, emerging market economies are vulnerable to the current COVID-19 pandemic. How can developed countries help tackle the issue? Is international cooperation more needed than ever? This week, Giuseppe Porcaro and Guntram Wolff are joined by Barry Eichengreen to discuss the impact of COVID-19 on emerging markets.

On April 23, EU leaders met virtually to try to come to an agreement for a common European response to the COVID-19 pandemic. What were the measures taken? Will they be sufficient? Did Europe come together for a coordinated response to the crisis? Or did the meeting further highlight the cracks between member states? This week, Guntram Wolff and Giuseppe Porcaro are joined by Maria Demertzis and André Sapir to comment on the EU Council meeting. This podcast is a member of the Europod network.

In this episode of The Sound of Economics Live, we discuss European coordination, national responses, and local effects in moving on the next phase of containment of the COVID-19 pandemicMaria Demertzis, Deputy Director Thomas Hale, Associate Professor in Global Public Policy, Blavatnik School of Government; Fellow of St Antony's College, University of Oxford Jean Pisani-Ferry, Senior Fellow Giuseppe Porcaro, Head of Outreach and Governance Additional speakers to be confirmed

After its longest meeting ever, the Eurogroup reached an agreement yesterday evening. What does the agreement say? What does it mean in terms of the emergency reaction to the economic fallout of the COVID-19 pandemic? What does it mean, more broadly, for the future of Europe? This week, Giuseppe Porcaro is joined by Maria Demertzis, André Sapir and Guntram Wolff to discuss whether the Eurogroup can save the day.This podcast is a member of the Europod network. The podcast started by the participants giving their view on the deal that was closed last night by the Eurogroup. Guntram Wolff noted that is was good to have a deal, even if it is small in his view. André Sapir also expressed reserved satisfaction for the deal. He was however not surprised, as more could only come from the heads of state and that it is part of the Eurogroup’s habits to increase firepower over time. Maria Demertzis found it is surprising that the longest ever Eurogroup meeting led to such a small result and though this was a bad signal. She did agree with her co-panellists that some agreement was better than no agreement in this case. Jumping into the debate, the panellists were asked to reflect on what the measures meant in more detail. André Sapir started by mentioning that of the €540 billion announced, about half (€240 billion) would be provided by the European Stability Mechanism (ESM), each Member State would have access to a credit line equivalent to 2% of their GDP. He added that it was clear however that not all Member States would use the ESM credit line making the €240 billion a maximum rather than the actual amount deployed. Guntram Wolff agreed with this and noted that the ESM was after all a stopgap in case borrowing from the markets became less accessible for a certain country. He added that the ESM package also reflected a movement towards a larger role for fiscal policy in the Euro Zone which was positive. In addition, he noted that it was still the ECB, which through its interventions, is keeping the yields of countries like Italy down and allows them to implement ambitious economic support packages. On the same line, Maria Demertzis agreed and stated that while countries like the Netherlands and Germany do not need ESM credit lines, even countries such as Italy or Span might not use them, as they do not which to be subjected to the conditionality that is attached to it. Afterwards, the panel went on to discuss the other measures that were part of the package agreed upon by the Eurogroup. Maria Demertzis expressed her satisfaction about the common unemployment insurance, temporary Support to mitigate Unemployment Risks in an Emergency (SURE), which putting aside its relatively small size, is a step in the right direction. Indeed, it provides an automatic stabilizer and could set a good precedent. André Sapir expressed more reservation about whether SURE would one day become a permanent tool, given that its temporary nature is clear in the text. Guntram Wolff agreed that SURE was a good tool as it operates through credit guarantees and through the Commission’s budget. This means that money could be better directed at countries that need it the most. The panellists followingly discussed issues related to the Italian economy and whether this would lead to debt sustainability issues. Guntram Wolff mentioned that the economic downturn in Italy is likely to be huge, not so much because it was badly affected by the pandemic, but because tourism represents a large share of its economy. He did not think, however, that Italian debt would become unsustainable, at least not as long as yields remained low thanks to the ECB. He therefore argued that Italy should have a large economic support programme. Maria Demertzis was less convinced that Italy did not run any debt sustainability risks due to the current crisis. She noted that while yields mattered, the stock of debt and economic growth were also key determinants of debt sustainability. While the ECB would have to roll over Italian debt indefinitely and probably further expand its Italian debt holdings, low growth could still lead to a bad equilibrium. She called for a deeper reflection into options to monetize debt in order to keep it sustainable. Guntram Wolff agreed and added that the real limits were political and legal in this discussion. The panellists were asked to conclude with some final thoughts. André Sapir noted that it was important to keep in mind the needs of non-Euro Zone EU Member States, even if they appeared less affect by the pandemic for the moment. Maria focused on a quote from the final text of the agreement that she was positive about: “a response commensurate with the size of crisis”. She explained that it was reflective of the new awareness of the Eurogroup about the urgency of the situation. Guntram Wolff concluded with two final remarks. First, that one should not only look at the size of the Eurogroup’s package but rather at the size of fiscal suppo

Economics seems to be full of myths that are hard to debunk. Will robots take our jobs? Are trade deficits bad? Is China such a big economy simply because of the size of its population? This week, Nicholas Barrett, Maria Demertzis, Marta Domínguez-Jímenez and Niclas Poitiers put on the detective cap and become Bruegel's own economic mythbusters.Disclaimer: this podcast was recorded on the 3rd of March 2020, before the COVID-19 lockdown was put in place in Europe and the US. Hence, some parts of it are no longer applicable. This podcast is a member of the Europod network.

From the European Stability Mechanism (ESM) to "coronabonds", the EU seems to be struggling to find an appropriate mechanism to tackle the economic crisis created by the COVID-19 pandemic. What is really the best option? And how do we ensure that, once the pandemic is over, we return to sustainable debt levels and competitive economies? This week, Giuseppe Porcaro is joined by Lucrezia Reichlin, professor of Economics at the London Business School, Grégory Claeys and Guntram Wolff to discuss the macroeconomic policy response to the COVID-19 crisis.This podcast is a member of the EuroPod network.

The current pandemic is shaking the financial system. How can banks react ? Is a consolidation of the financial system in Europe needed in order to respond to this crisis ? Will our economies suffer from this pandemic as much as they did in 2008 ? This week, Giuseppe Porcaro is joined live by Guntram Wolff and Nicolas Véron to discuss banks and loan losses in the pandemic turmoil. This podcast is a member of the EuroPod network.

From flights cancelled and restaurants closed to companies either slowing or stopping their production, COVID-19 is shutting our economies down. How can the EU reboot them? What should be our fiscal and monetary response to the pandemic? Will our economic system ever be the same once everything is over? This week, Guntram Wolff is joined by Jean Pisani-Ferry and Maria Demertzis to discuss the EU's response to the coronavirus. This podcast is a member of the EuroPod network.Disclaimer: due to the current circumstances, this episode was recorded remotely. Therefore, the sound quality isn't the same as in our previous episodes.

The field of economics, like many others, seems to be biased towards men. How are women disadvantaged? Makfire Alija and Katja Knezevic join Nicholas Barrett and Niclas Poitiers to discuss the systematic hurdles.

The coronavirus is going to hit the global economy hard, but how hard? What can policymakers plan for the months ahead? Nicholas Barrett asks Guntram Wolff and Maria Demertzis about economic symptoms and treatments

When it comes to global carbon emission is a tax the best form of defence? To make the European Green Deal work, the EU is considering a levy on carbon-intensive goods manufactured beyond its borders. But will a carbon border tax spawn a massive bureaucracy and lead to accusations of protectionism? To find out, Nicholas Barrett talked to Georg Zachmann and Ben McWilliams from Bruegel and Gabriel Felbermayr, President of the Kiel Institute for the World Economy

As China and the US battle for global supremacy, the EU seems to remain in the shadows. But what if the EU had been shaping the world economy all along without anybody noticing? Could its soft power be strong enough to shape regulations all over the world? What impact does such influence have over its own economy? This week, Giuseppe Porcaro and Guntram Wolff are joined live by Ashoka Mody, Professor in International Economic Policy at the Princeton University, and Anu Bradford, author of the book "The Brussels Effect: How the European Union rules the world".

As the Coronavirus continues to spread, schools have closed, flights have been canceled and entire towns have been quarantined. Most of those who contract the virus will undoubtedly survive, but can the same be said for globalisation? Is it time for economists to question the virtue of international supply chains? Should policymakers in the west be thinking twice about our material dependency on Chinese manufacturing? And is an economic contagion as dangerous as its medical equivalent? To discuss this, Nicholas Barrett is joined by Nicolas Veron and Niclas Poitiers, and down the line from Spain, by Alicia Garcia Herrero.

The European Green Deal is one of the landmarks of Ursula von der Leyen's Commission. But, without an ambitious investment behind it, what could be its potential implications for the EU? Could it go as far as to threaten the EU's single market? This week, Renew Europe's vice-president, MEP Luis Garicano, joins Guntram Wolff and Maria Demertzis to discuss not only the European Green Deal but also the EU Budget and the Banking Union. Disclaimer: this episode was recorded on the 20th of February, before Bruegel hosted the event "The Ressurection of the European Banking Union".

Despite the political antagonism, the EU and Russia are not only geographically, but also economically, reliant on each other: European houses are heated using Russian natural gas and Russia is highly dependent on European investment. Should the EU develop closer political ties with Russia? How much leverage does the EU have when dealing with the Kremlin? This week, Nicholas Barrett is joined by Niclas Poitiers and Marta Domínguez-Jímenez to discuss European foreign direct investment in Russia.

From cashless payments to digital banking, finance has become intangible and global. But, while speed and convenience have made our international transactions easier, have we become more vulnerable? How can the EU respond to the increased risk of hybrid threats? This week, Nicholas Barrett is joined by Jukka Savolainen, Director of Community of Interest “Vulnerabilities and Resilience” at the European Centre of Excellence for Countering Hybrid Threats, and Maria Demertzis, to discuss the risks that hybrid threats pose to the financial system.

While the US and China have been setting the pace when it comes to Artificial Intelligence, the European Union seems to be lagging behind. What are the Commission's plans to finally catch up? Will AI increase the gap between big and small companies? Nicholas Barrett asked Julia Anderson and Guntram Wolff

AI promises a new industrial revolution but history warns us that industrial revolutions aren't always that fun for people in the eye of the storm. This week, Nicholas Barrett and Maria Demertzis spoke with Dr. Carl Frey, author of the book "The technology trap: capital, labor, and power in the age of automation", and Robert D. Atkinson, President of Information Technology and Innovation Foundation (ITIF), about how artificial intelligence will affect the job market.

On Saturday morning, the United Kingdom will wake up outside the European Union. After 37 years of collaboration, how will Brexit affect research and innovation in Europe and in the UK? What should be the next steps undertaken by both in order to maintain the same level of cooperation? This week, Nicholas Barrett is joined by Maria Demertzis, Guntram Wolff and Michael Leigh, Senior Adjunct Professor of European Studies at the Johns Hopkins University, to discuss a post-Brexit agreement for research and innovation.

It seems almost inevitable that Google will be big part of Europe's future. And Europe will be a huge part of Google's too. This week, Alphabet, Google's parent company, hit $1 trillion market cap for the first time. Can Google's AI be socially beneficial? Are big tech companies intrinsically bad? This week, Guntram Wolff talked to Google and Alphabet's CEO, Sundar Pichai.

Will Brexit damage Britain's financial services industry? Or is talk of its diminished status just a storm in a teacup? The City of London could move closer to Wall Street or it might become "Singapore-on-Thames". Nicholas Barrett talks to Rebecca Christie about banking after Brexit.

The European Commission has presented its Just Transition Fund to help regions still dependent on fossil fuel as they move towards green energy. But where does the money come from and is it enough to make Europe carbon neutral by 2050? Should the EU re-write its fiscal rules to encourage sustainable investment? And should environmentalists be optimistic? Nicholas Barrett asked Simone Tagliapietra and Grégory Claeys.

Last Friday, Qassem Soleimani, head of the Iranian Revolutionary Guards’ QUDS force, was killed by an American airstrike outside Baghdad airport. Tehran has promised to retaliate. At the time of recording, the world is still waiting to see how Iran will respond. Some have speculated that they could disrupt the world’s oil markets by closing the Strait of Hormuz, which acts as a vital artery for around a third of the world’s liquefied natural gas and almost a quarter of the world’s oil. Today, oil prices surpassed $70 a barrel and if tensions continue to escalate the price is bound to grow. How dependent is the global economy on affordable Middle Eastern fossil fuel? This week, Nicholas Barrett is joined by Maria Demertzis and Niclas Poitiers to discuss how the US-Iran hostilities are affecting the global economy.

2019 is coming to an end and so is the decade. How did economics change the world over the last ten years? And how did the world change economics? Which economics books defined the last ten years? And what should we anticipate in the decade to come? Today, Nicholas Barrett discusses the past and the future with Niclas Poitiers and Maria Demertzis.

Will AI exacerbate the gap between big companies and small ones? Do ordinary Europeans gain anything from having European tech giants? This week, Nicholas Barrett and Guntram Wolff went to the Berlaymont to interview Margrethe Vestager, the Executive Vice President of the European Commission for a Europe Fit for the Digital Age.

How do states exercise power through global economic networks? The multilateral world order is supposed to be harmonious, but by seizing the nodes of production, powerful forces can control access to the global economic system and threaten to lock their rival out. This week, Nicholas Barrett and Guntram Wolff are joined by Henry Farrell, Professor of political science and international affairs at the George Washington University, and Abraham L. Newman, Professor of Government at the Georgetown University, to discuss their theory of weaponised interdependency

This week, the WTO's Appellate Body, the dispute settlement body, became inoperational: it no longer has the necessary number of judges to render verdicts. What does this mean for international trade and multilateralism? Are we now living in a world without dispute settlement? This week, Guntram Wolff is joined by Alan Beattie, the author of the FT's new Trade Secrets newsletter, and Alicia García-Herrero to discuss the crisis of the Appellate Body.

President Ursula Von der Leyen has presented her European Green Deal before the European Parliament. How will it work? What are its implications? And will it make Europe carbon neutral by 2050? Nicholas Barrett asks Simone Tagliapietra what's inside the Green Deal.

The UK goes to the polls on Thursday to decide who (and if) they want to "get Brexit done". But, as soon as Britain leaves, it will have 11 months to agree a trade deal with the EU. Is it possible? Nicholas Barrett is joined by Maria Demertzis and Niclas Poitiers to discuss post-Brexit trade deals with the EU and the USA.

Is the Belt and Road initiative a global development plan or is it just a trade project? How concerned should the international community be with what is called the "project of the century"? This week, Guntram Wolff discusses the Belt and Road Initiative with Prof. He Fang, from the Shanghai Jiao Tong University, Dr. Jing Gu, director of the Centre for Rising Powers and Global Development, and Suman Bery, from Bruegel. This podcast was recorded in Berlin at the Asia Europe Economic Forum (AEEF): https://bruegel.org/events/eu-asia-trade-and-investment-connectivity/

Russia wants to export more gas to China, should the EU be concerned? This week, Nicholas Barrett is joined by Georg Zachmann to discuss the EU-Russia-China energy triangle.

Will EU tech regulations undermine its ability to innovate? From facial recognition to the production of “deep fakes”, artificial intelligence poses many ethical questions. In a world where China and the US are investing massively in AI, how can the EU protect its values while harnessing technology? These are some of the questions we discuss with Brent Mittlestadt, from the University of Oxford, and Andre Loesekrug-Pietri, from the Joint European Disruptive Initiative, in our new Sound of Economics podcast. The podcast is hosted by Guntram Wolff and Nicholas Barrett.

Guntram Wolff is joined by Alan Beattie, the author of the FT's new Trade Secrets newsletter, and by Andre Sapir, Bruegel's very own trade expert to discuss President Trump's tariffs and whether or not they're working

Don't worry if you missed part one because all of Bruegel's pillars for a European Green Deal are created equal. This time, Nicholas Barrett and Guntram Wolff discuss industrial policy and the social consequences of the green deal with Grégory Claeys and Simone Tagliapietra. To read the paper in full, visit Bruegel.org

The European Green Deal will be a defining feature of Ursula Von der Leyen's incoming Commission. But will carbon border taxes and single carbon prices be enough to make Europe carbon-neutral by 2050? This week, Nicholas Barrett and Guntram Wolff discuss Bruegel's new paper 'How to make the European Green Deal Work' with Grégory Claeys and Simone Tagliapietra.

Digital banking has made our lives easier, but why are people use mobile banking more likely to be overdrawn? This week Maria Demertzis and Nicholas Barrett are joined by Annamaria Lusardi, Denit Trust Endowed Chair of Economics and Accountancy from George Washington University School of Business to discuss financial literacy