While traditional economic approaches in international climate agreements differ in some respects, they are all based on three main principles:- Universality: Because the causes and consequences of climate change are global, all countries must participate in efforts to reduce greenhouse gas emissions, with no free riders.- Efficiency: To achieve the greenhouse gas (GHG) reduction objective at leas... Lire la suite
(Update on June 15, 2017)Back in 1989, the Brady Plan enabled developing countries to extricate themselves from a solvency crisis that had severely hampered their growth throughout the 1980s. Under the Plan bank loans to these countries were exchanged for bonds with lower face values and longer maturities. The success of the Plan marked a turning point for middle-income countries (MICs). They star... Lire la suite
The significant economic growth and the profound structural changes that occurred since the end of the 19th century have proceeded hand-in-hand with an unprecedented rise in temperatures as well as broader changes to global climate. At COP21 in Paris, the common realization that continuous global warming could lead to irreversible damage to the planet led the international community to confirm and... Lire la suite
Japan’s fall into deflation is explained by two sets of factors. The first were structural, such as the fading of the positive effects of technological catch-up and population ageing. The second were more cyclical like the economic downturns following the burst of the real-estate and stock-market bubble and the end-1997 economic crisis of the Asian countries. Since then, Japan has never experience... Lire la suite
The tendency towards international expansion of the value chain over the past three decades has gradually spread to research and development (R&D) activities, formerly located close to decision making centres. The trend appears to be stabilizing in most European countries, though it is impossible to say whether this slowdown is cyclical or structural. One channel for internationalisation is foreig... Lire la suite
The concept of secular stagnation was introduced in 1938 by Alvin Hansen, who was concerned that investment might be too low to achieve full employment. After being forgotten for decades, the concept was revived in November 2013 by Larry Summers, who defined it as a situation in which the economy is unable to approach its potential growth rate, for reasons that include the difficulty of sufficient... Lire la suite
World growth in 2016 is showing fresh of weakness, having contracted in 2015 on a slowdown in emerging economies. Global activity has been affected by a soft patch in the United States in the first half year. The pace is expected to quicken in 2017 as the US economy gathers momentum and Brazil and Russia gradually pull out of recession.The uncertainty generated by the UK referendum on remaining in... Lire la suite
Corruption has negative consequences for the economy because it affects the level, structure and calibre of public revenue and spending as well as private sector productivity.Indices that measure perceptions of corruption can be used to establish a rich – albeit imperfect and incomplete – country-by-country overview of the situation. Developed countries have lower levels of perceived corruption th... Lire la suite
Overweight and obese people make up just under half of the French population, but they account for a disproportionate share of healthcare expenditure (56% for outpatient care and probably more for inpatient care). Excess bodyweight has particularly negative consequences for human health, raising morbidity by the heightened risk of chronic disease, and raising mortality, as 13% of deaths recorded i... Lire la suite
France has two points-based pay-as-you-go compulsory complementary pension schemes for private-sector employees: AGIRC covers managerial and executive staff (cadres), and ARRCO covers non-executives (non-cadres). The schemes were established in the second half of the twentieth century and are managed directly by the social partners (trade unions and employer organisations).Without adjustments, bot... Lire la suite