Archivi tag: coronavirus


Ghana’s economy is one of the fastest growing in Africa, and its recently established oil and gas industry has made it a gateway for foreign investment (as stated by the International Monetary Fund and The World Bank in 2019). However, while prospects for a continued expansion are good, the state faces a stubborn fiscal deficit and the longer-term challenge of reducing the nation’s reliance on a small number of exports due to the COVID-19 pandemic. Fiscal and economic reforms, therefore, remain top of the agenda in the election year of 2020.

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In Latin America, where economic problems tend to be more destructive than elsewhere of the Western world, the future economic, political and social stability will be highly dependent on governments’ responses to the coronavirus pandemic. As foreign capital and investments diminish and a global recession is looming, Latin American countries are facing a distressing outlook, which will inevitably lead to a major societal restructuring.

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Among the disastrous consequences of the Coronavirus, many people joyfully praised the reduction in CO2 emissions as a turning point in the fight for the environment. If we look at the past, unfortunately, they could be getting things very wrong.


Air pollution is one of the major causes of death all over the world: every year, more than four and a half million people die for causes directly related to poor air quality [1]. However, policymakers around the globe did not succeed to tackle the issue effectively.


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Among the intense debate about the European Stability Mechanism, some economists claim that under the ESM conditionalities Italy would finally implement the structural reforms it needs to enhance its productivity and competitiveness. Although economists have asked these measures for years, politicians have been too populist and selfish to endanger their popularity and approve unpopular policies in the short-term, but that would strengthen Italian economy in the long-term. This view is widely shared inside economics departments, also among many students. Despite its diffusion, this claim is wrong because it implies that economics oversteps its boundaries by imposing political decisions in an authoritarian way. In this article I explain my view after having briefly discussed the features of ESM and its effectiveness (when I talk about ESM borrowings I do not mention the unconditional borrowings up to 2% of GDP approved during the last Eurogroup).

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Have you ever wondered about how much your life is worth? Economists have always tried to give monetary value to people’s lives. Nowadays, this issue gets even hotter, since policymakers have to take into account all costs and benefits deriving from shutting down the world economy: when will the benefits of saving lives by ‘flattening the curve’ of infected individuals be outweighed by its costs?

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‘Eurobonds’ are debt securities denominated in a currency foreign to the country of issuing. Then, why everybody is so concerned, especially nowadays, about something that exists since 1963, the year when Autostrade issued the world’s first 60.000 Eurobonds denominated in U.S. Dollar? The answer is simple: the same word is also used to define another concept. The ‘Eurobond’ we are talking about is also called ‘stability bond’, a government bond, denominated in euro, issued jointly by the eurozone states. How is it different from the usual sovereign debt?
The point here is what is underlying the issues of common government securities, i.e. interest rates and collaterals.
In this series of articles, we will explain what Eurobonds are, why there are so many concerns around them and if they could be developed someday soon. In particular, we will go through European peculiarities and analyse all viable options to face extreme circumstances  as it is for COVID-19.

Why everybody messed up with debt

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