Category Archives: Education

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>

Finance Is Not the Economy

An economy based increasingly on rent extraction by the few and debt buildup by the many is a feudal model
By Dirk Bezemer and Michael Hudson – Why have economies polarized so sharply since the 1980s, and especially since the 2008 crisis? How did we get so indebted without real wage and living standards rising, while cities, states, and entire nations are falling into default? Only when we answer these questions can we formulate policies to extract ourselves from the current debt crises. There is widespread sentiment that this crisis is fundamental, and that we cannot simply “go back to normal.” But deep confusion remains over the theoretical framework that should guide analysis of the post-bubble economy.

The last quarter century’s macro-monetary management, and the theory and ideology that underpinned it, was lauded by leading macroeconomists asserting that “The State of Macro[economics] is Good” (Blanchard 2008, 1). Oliver Blanchard, Ben Bernanke, Gordon Brown, and others credited their own monetary policies for the remarkably low inflation and stable growth of what they called the “Great Moderation” (Bernanke 2004), and proclaimed the “end of boom and bust,” as Gordon Brown did in 2007. But it was precisely this period from the mid-1980s to 2007 that saw the fastest and most corrosive inflation in real estate, stocks, and bonds since World War II.

Nearly all this asset-price inflation was debt-leveraged. Money and credit were not spent on tangible capital investment to produce goods and non-financial services, and did not raise wage levels. The traditional monetary tautology MV=PT, which excludes assets and their prices, is irrelevant to this process. Current cutting-edge macroeconomic models since the 1980s do not include credit, debt, or a financial sector (King 2012; Sbordone et al. 2010), and are equally unhelpful. They are the models of those who “did not see it coming” (Bezemer 2010, 676).

In this article, we present the building blocks for an alternative. This will be based on our scholarly work over the last few years, standing on the shoulders of such giants as John Stuart Mill, Joseph Schumpeter, and Hyman Minsky. more>

Updates from McKinsey

How capital markets keep us connected
Nasdaq’s 50th anniversary reminds us that markets should be more inclusive, share more information, inspire innovation, and bring the world together.
By Tim Koller – Fifty years ago this February 8, a UNIVAC 1108 mainframe computer blinked on in sleepy Trumbull, Connecticut. Thus was born the National Association of Securities Dealers Automated Quotation system, or Nasdaq, the world’s first all-electronic stock exchange, where securities could be bought and sold online in real time.

Well, almost.

While the network did flash “bids” and “asks” of prices, users could not actually buy or sell through their computers. Instead, dealers sat before individual Nasdaq terminals and made their trades by telephone—as they would for the next 13 years. The Nasdaq came into being not as a platform for execution but as a source of information and innovation to help facilitate trades by participants across distant locations.

In that way, Nasdaq took its cues from the first modern stock market, the Amsterdam Stock Exchange (now known as Euronext). It didn’t convene at a single or set address during its early years, nor did it actually sell stock certificates, at least in present-day terms. Founded in 1602, the Amsterdam Stock Exchange arose initially as a means for people to subscribe to, and then to sell, percentages of Dutch East India Company net profits. The selling and reselling of these interests, in an iterative series of individual, bargained-for trades, aggregated into “the market.” Trades took place wherever merchants happened to meet, at any hour of the day.

As trading proliferated, the imperative for information did, too. Prices weren’t imposed by fiat; they couldn’t be. Why part from your money or your shares if you didn’t believe you would come out ahead in the bargain? Within a few decades of its founding, the Amsterdam Stock Exchange included trades by forward contracts (already well in use in Europe and around the world for commodities transactions), selling securities short and even buying on margin. Investors understood that the value of their trade relied on the probability of future profits, which meant that the advantage tilted to the diligent, the perceptive, and the informed.

Early stock market investors (there were more than a thousand of them, right from the start) were eager to subscribe when the Dutch East India Company “went public” because, as merchants and traders themselves, they could perceive the potential for high returns. It wasn’t unusual for ships sailing back from East India to realize profits of 100-fold. It also wasn’t unusual for profits to be zero; when fleets set out from Amsterdam, Delft, Rotterdam, and Zeeland, all might be lost to weather, pirates, or scurvy. That vessels did manage to travel the thousands of miles and back was a triumph of innovation and risk taking. Pooling investments and sailing multiple times allowed more investors to create wealth. It also helped protect against losing everything in a single, misbegotten voyage. 1

Soon, stock exchanges were forming or emerging out of existing bourses across the Atlantic and Mediterranean. The more people the better. Larger markets meant greater liquidity, the opportunity to sell and resell equity interests to an ever-growing pool of investors. More markets also meant more opportunity to be closer to the action, as shipping, trade, and commerce brought continents and cultures together. more>

Updates from Ciena

Adaptive Learning is the Future of Education. Are Education Networks Ready?
Educators are increasingly leaning on EdTech and Adaptive Learning tools that personalize and improve the student learning experience. Ciena’s Daniele Loffreda details the critical role the network plays in making these disruptive new learning tools a reality.
By Daniele Loffreda – As teachers and administrators strive to improve student performance and graduation rates, they’re increasingly leveraging new Educational Technology (EdTech) to deliver a higher quality learning experience. Digital applications such as streaming video, mixed-reality, gamification, and online global collaboration enable a “learning beyond the classroom walls” environment.

However, educators are quickly realizing that even with EdTech innovations, the traditional “one-size-fits-all” approach to education fails to make the grade. Student populations are increasingly diverse in terms of culture, location, economic background, and learning styles. Educators are increasingly aware that not everyone can absorb the lesson plan in the same way, and that teaching needs to be more personalized to the individual student. To provide more personalized learning experience to students, while ensuring adherence to government performance standards, educators are turning to Adaptive Learning systems.

Adaptive Learning uses computer artificial intelligence algorithms that adjust the educational content to the student’s learning style and pace. Based upon a student’s reaction to content, algorithms detect patterns and respond in real-time with prompts, revisions, and interventions based upon the student’s unique needs and abilities. Combining Adaptive Learning platforms with predictive analytics and other EdTech applications helps to transform the learning experience for both the student and the teacher. more>

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Updates from Chicago Booth

Don’t kill a company to collect a debt
By Emily Lambert – There’s a sizable gap between what a company is worth in liquidation and what it’s worth while still operating, according to University of California at Berkeley’s Amir Kermani and Chicago Booth’s Yueran Ma. Companies going through Chapter 11 restructuring are worth about twice as much when they are going concerns rather than liquidated, they write.

The finding is part of a larger study of corporate debt, in which Kermani and Ma examine the size and composition of the debt loads held by nonfinancial companies. They distinguish between asset-based debt (issued against discrete assets) and cash flow–based debt (issued against the operating value of a company). In doing so, they wondered about companies’ cash-flow and asset values—essentially, how much more a company might be worth alive rather than dead.

It took the researchers more than a year to amass the data needed to answer the question. They hand-collected information from 387 public, nonfinancial companies that filed for Chapter 11 restructuring between 2000 and 2016, plus pulled from other databases including Compustat.

Assessing the value of assets took quite a bit of effort, Ma says. She and Kermani were able to find comprehensive appraisals that were disclosed in court cases. They also performed extensive checks using data from other sources. more>

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Public Sees Black People, Women, Gays and Lesbians Gaining Influence in Biden Era

Half of Americans say evangelical Christians will lose influence
pewresearch.org – As Joe Biden navigates the first few weeks of his presidency, Americans have distinctly different views of which groups will gain influence – and which ones will lose influence – in Washington during his administration.

Nearly two-thirds of U.S. adults (65%) say Black people will gain influence in Washington with Joe Biden taking office. Just 14% say Black people will lose influence, while 20% say they will not be affected.

Large shares of adults also expect women (63%) and gay and lesbian people (60%) to gain influence over the next four years. Only about one-in-ten expect each of these groups to lose influence.

Other groups expected to gain influence include younger people (54%), Hispanic people (53%), poor people (50%) and unions (48%). Relatively small shares – no more than about quarter – say any of these groups will lose influence during Biden’s presidency.

By contrast, evangelical Christians are expected to lose influence with Biden as president: 50% say they will lose influence, while just 9% expect them to gain influence; 39% say they will be unaffected.

By sizable margins, more Americans also say business corporations and the military will lose than gain influence, though about a quarter (24%) say corporations will be unaffected and 32% say the same about the military. more>

Updates from McKinsey

Transformation in uncertain times: Tackling both the urgent and the important A sprint-based transformation approach can help organizations achieve full potential.
By Darius Bates, David Dorton, Seth Goldstrom, and Yasir Mirza – In ordinary times, successful leaders continually strive to master the balance between the urgent and the important, both in their organizations and their daily schedules. But today’s CEOs face unprecedented financial, health and safety, and operational challenges. For them, the problem isn’t balancing the urgent with the important. It’s that most everything is both urgent and important and, given the ongoing uncertainty about COVID-19 and its aftershocks, that’s not likely to change anytime soon.

To address these challenges in the present and in the next normal, some leaders will instinctively pick two or three top priorities. Then, on the assumption it’s better to focus an already-stressed organization on must-win battles, they will launch major efforts to realize such goals.

Choosing your priorities is a good idea, but that’s just the starting point. To sustainably transform an organization’s trajectory, leaders will need to efficiently implement improvements across the whole of the organization. Our research has shown that bold programs focused on a granular set of initiatives achieve more than limited efforts do: for example, our analysis of 100-plus transformations shows that 68 percent of their initiatives are worth $250,000 or less and that, on average, each initiative owner manages no more than two of thousands of initiatives. In our experience, the best-performing transformations focus on driving change by moving pebbles, not just boulders.

So how does a company tackle the urgent and the important while also delving into sufficient detail to achieve a step change in performance and value creation? In recent years, we’ve seen several organizations achieve these goals through a structured, sprint-based approach we refer to as “road-mapping.” more>