Carbon Prices, not Monetary Policies, Are the Tools to Fight Climate Change

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January 23, 2020 —  Everyone agrees that Climate Change is at the top of the list of most important policy issues that we face – everyone, with a few exceptions such as Trump supporters who call it a hoax.  Identifying the problem, however, is not much use unless we also identify the appropriate tools to address the problem.

Financial institutions

In my own field of specialization, central bankers have caught Climate Change fever.  Perhaps the first was Governor Mark Carney — recently departed from the Bank of England.   Christine Lagarde – newly arrived at the ECB from the International Monetary Fund —  has declared the global environment to be “mission critical” for her institutions. read more

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Most important global event of 2020? The US election

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January 1, 2020 — An interview question from Chosun Ilbo (the #1 Korean newspaper) for the New Year:   Which political event of 2020 should concern us the most? (E.g., the U.S. presidential election, the geopolitical crisis on the Korean Peninsula, Brexit…?)

My response:

Perhaps I am too US-centric.  But out of all events in 2020, I see November’s presidential election in the United States as warranting the greatest concern, not just for my home country but for the world.

The global system read more

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Six Practical Proposals for Progressive Tax Policy

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December 20, 2019 —  It was quite a surprise, three years ago, when Donald Trump won a majority in the US Electoral College, thus becoming the 45th president.  In the search for explanations, one immediately dominated:  Democrats had not been sufficiently aware of the problem of income inequality or had neglected to propose good solutions to it.

This is presumably the logic behind radical proposals coming from some of the leading contenders for the Democratic nomination in the 2020 presidential election. Senator Elizabeth Warren, for example, has proposed an annual tax on the wealth of the wealthiest Americans (originally to be 2 % per year, but now up to 6 %). read more

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