Daily Archives: February 11, 2021

EU vows to work with international partners to be climate neutral by 2050

New Europe Online/KG – The Europe Union can be a powerful promoter of climate ambitions also because it can offer a model of a socially just Green Deal transition, which leaves no one behind. “We can share our experience of tools such as the Coal Regions in Transition Initiative, and the Just Transition Mechanism. We can show that economic and energy diversification is possible and can create better jobs and growth for societies,” Energy Commissioner Kadri Simson said on February 1 at the EsadeGeo Annual Energy Meeting “Geopolitics of the Green Deal Month”.

Europe accounts for around 8% of global emission. “So, to address global climate change, we need others to follow the same path – to become our partners in the clean energy transition,” Simson noted.

“Europe has two assets to advocate here: our high climate ambition and our just transition policy model. The European Union showed leadership announcing its climate neutrality goal for 2050. Last December EU leaders also agreed to step up commitment to reduce emissions by 2030. This is now the EU’s nationally determined contribution under the Paris Agreement,” the Commissioner said, adding that several other major international partners have announced as well net zero commitments. “We can look at 2021 with optimism. As a year of global climate action. Thanks to the COP 26 but also the actions of G20 and G7 led by the UK and Italy, Europe will be a driving force of this collective effort,” she said.

“So, as I said, we want to be leaders, but we have important work to do as partners. The Green Deal is not just an agenda to transform Europe’s economy and society. It has an impact beyond our borders, and most of all, on our closest partners and in our neighborhood. That’s why this must be a focus of our external energy action,” Simson stressed. more>

Rapid Money Supply Growth Does Not Cause Inflation

Neither do rapid growth in government debt, declining interest rates, or rapid Increases in a central bank’s balance sheet
By Richard Vague – Monetarist theory, which came to dominate economic thinking in the 1980s and the decades that followed, holds that rapid money supply growth is the cause of inflation. The theory, however, fails an actual test of the available evidence. In our review of 47 countries, generally from 1960 forward, we found that more often than not high inflation does not follow rapid money supply growth, and in contrast to this, high inflation has occurred frequently when it has not been preceded by rapid money supply growth.

The purpose of this paper is to present these findings and solicit feedback on our data, methods, and conclusions.

To analyze the issue, we developed a database of 47 countries that together constitute 91 percent of global GDP and looked at each episode of rapid money supply growth to see if it was followed by high inflation. In the majority of cases, it was not. In fact, the opposite was true—a large percentage of the cases of high inflation were not preceded by high money supply growth. These 47 countries all rank within the top 70 largest economies as measured by GDP and include each of the top 20 countries. If a country was not included, it was because we could not get a complete enough set of historical data on that country.

There are several reasons to want to better understand the causes of inflation. Currently, central banks in Japan, Europe and elsewhere are trying to engender a moderately higher level of inflation in order to stave off the drift toward deflation and under the belief that it will add to job and economic growth. Also, both public and private debt have reached such high levels in ratio to GDP that some policymakers are beginning to reflect on potential paths to deleveraging, and inflation is one such path. Lastly, a number of countries are trying to moderate levels of inflation that are deemed too high. For these countries, too, a deeper understanding of the mechanisms of inflation is important. more>

Updates from ITU

Regulating for resilience: Reigniting ICT markets and economies post-COVID-19
By Raúl Katz – As the COVID-19 pandemic continues its relentless spread, governments, regulators, academics, and the global information and communication technology (ICT) community keep rethinking policy and regulatory frameworks to mitigate the effects of the crisis and chart a way out of it.

The 7th Economic Experts Roundtable convened by ITU provided a platform to generate ideas and solutions to render ICT markets an even more important contributor to social and economic resilience in the face of COVID-19.

The current crisis has brought new challenges to the ICT sector. Regulatory frameworks need to be adjusted to stimulate investment while maintaining a moderate level of competition. Markets and consumer benefits are now examined by decision-makers through the lens of financial adversity and uncertain outlooks.

Amid disruption, policy-makers and regulators need evidence-based guidance that provides a solid ground for their reforms.

A new study released at the Roundtable provides fresh insights backed by authoritative data on the evolution of ICT regulation since 2007, the ICT Regulatory Tracker, and a global dataset on ICT markets economics.

The study shows that ICT regulation has had a measurable impact on the growth of global ICT markets over the past decade.

The analysis uses econometric modelling to pinpoint the impact of the regulatory and institutional frameworks on the performance of the ICT sector and its contribution to national economies.

It provides policy-makers and regulators with evidence to advance regulatory reform and address the challenges and gaps in current regulatory frameworks for digital services and applications. more>

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TThe US jumps on board the electric vehicle revolution, leaving Australia in the dust

By Jake Whitehead, Dia Adhikari Smith and Thara Philip – The Morrison government on Friday released a plan to reduce carbon emissions from Australia’s road transport sector. Controversially, it ruled out consumer incentives to encourage electric vehicle uptake. The disappointing document is not the electric vehicle jump-start the country sorely needs.

In contrast, the United States has recently gone all-in on electric vehicles. Like leaders in many developed economies, President Joe Biden will offer consumer incentives to encourage uptake of the technology. The nation’s entire government vehicle fleet will also transition to electric vehicles made in the US.

Electric vehicles are crucial to delivering the substantial emissions reductions required to reach net-zero by 2050 – a goal Prime Minister Scott Morrison now says he supports.

It begs the question: when will Australian governments wake up and support the electric vehicle revolution? more>