Central Bank Digital Currency
Question A:
The Bank for International Settlements defines a central bank digital currency as follows: ‘In simple terms, a central bank digital currency (CBDC) would be a digital banknote. It could be used by individuals to pay businesses, shops or each other (a 'retail CBDC'), or between financial institutions to settle trades in financial markets (a ‘wholesale CBDC').’
For developed countries, a central bank digital currency that is available to the public at large would offer social benefits that exceed the associated costs or risks.
Question B:
Question C:
Responses
Central banks that do not introduce their own digital money risk losing the ability to conduct effective monetary policy.
Responses
The introduction of a central bank digital currency is unlikely to have major effects on the economy.
Responses
International Macroeconomics
Question A:
Question B:
Question C:
In an economy open to capital flows, monetary policy can only be effective with a floating exchange rate.
Responses
For emerging and developing economies open to the world capital market, a flexible exchange rate confers little advantage over a pegged exchange rate in terms of economic stability.
Responses
The key feature making the US a more natural optimum currency area than the euro area is higher labor mobility.
Responses
Vaccine Development and Distribution
This week's European Economic Experts Panel statements:
A) Removing intellectual property protections on Covid-19 vaccines would substantially improve availability of the vaccines in developing countries.
B) Removing intellectual property protections on Covid-19 vaccines would have a negative impact on vaccine development efforts for future variants of SARS-CoV-2 or for the next pandemic.
C) Without an international agreement that facilitates vaccine trade, countries’ incentives to limit exports of vaccines and/or key production inputs are likely to prolong the adverse effects of the pandemic in advanced countries.
A) Removing intellectual property protections on Covid-19 vaccines would substantially improve availability of the vaccines in developing countries.
B) Removing intellectual property protections on Covid-19 vaccines would have a negative impact on vaccine development efforts for future variants of SARS-CoV-2 or for the next pandemic.
C) Without an international agreement that facilitates vaccine trade, countries’ incentives to limit exports of vaccines and/or key production inputs are likely to prolong the adverse effects of the pandemic in advanced countries.
Vaccine Development and Distribution
This week's US Economic Experts Panel statements:
A) Removing intellectual property protections on Covid-19 vaccines would substantially improve availability of the vaccines in developing countries.
B) Removing intellectual property protections on Covid-19 vaccines would have a negative impact on vaccine development efforts for future variants of SARS-CoV-2 or for the next pandemic.
C) Without an international agreement that facilitates vaccine trade, countries’ incentives to limit exports of vaccines and/or key production inputs are likely to prolong the adverse effects of the pandemic in advanced countries.
A) Removing intellectual property protections on Covid-19 vaccines would substantially improve availability of the vaccines in developing countries.
B) Removing intellectual property protections on Covid-19 vaccines would have a negative impact on vaccine development efforts for future variants of SARS-CoV-2 or for the next pandemic.
C) Without an international agreement that facilitates vaccine trade, countries’ incentives to limit exports of vaccines and/or key production inputs are likely to prolong the adverse effects of the pandemic in advanced countries.
Short Selling
This week's European Economic Experts Panel statements:
A) Allowing short selling of financial securities, such as stocks and government bonds, leads to prices that, on average, are closer to their fundamental values.
B) Requiring investors to disclose short positions in a stock at the equivalent threshold as they are required to do for long positions would result in significantly less short selling.
C) Regulatory restrictions on short selling - such as no naked shorts, temporary bans in times of crisis - make it difficult for optimists and pessimists to have equal influence on asset prices.
A) Allowing short selling of financial securities, such as stocks and government bonds, leads to prices that, on average, are closer to their fundamental values.
B) Requiring investors to disclose short positions in a stock at the equivalent threshold as they are required to do for long positions would result in significantly less short selling.
C) Regulatory restrictions on short selling - such as no naked shorts, temporary bans in times of crisis - make it difficult for optimists and pessimists to have equal influence on asset prices.
Tackling Obesity
This week's US Economic Experts Panel statements:
A) Policies that aim to reduce obesity by increasing incentives for physical activity would improve social welfare more than policies that increase the financial costs of consuming calories.
B) A ban on advertising junk foods (those that are high in sugar, salt, and fat) would be an effective policy to reduce child obesity.
A) Policies that aim to reduce obesity by increasing incentives for physical activity would improve social welfare more than policies that increase the financial costs of consuming calories.
B) A ban on advertising junk foods (those that are high in sugar, salt, and fat) would be an effective policy to reduce child obesity.
Pricing Emissions
This week's US Economic Experts Panel statements:
Sound policy would involve increasing significantly the currently near-zero price of emissions of carbon dioxide and other greenhouse gases.
Sound policy would involve increasing significantly the currently near-zero price of emissions of carbon dioxide and other greenhouse gases.
Vaccines in Europe
This week's European Economic Experts Panel statements:
A) Offering substantially higher prices per dose would have resulted in larger capacity investments by vaccine makers and accelerated distribution in Europe significantly.
B) In the current situation, paying for more production capacity would be better than offering higher prices for vaccines.
C) If the EU started paying prices above 100 euros per dose, it would on net reduce the cost of the pandemic to the EU via more lives saved and shorter lockdowns.
A) Offering substantially higher prices per dose would have resulted in larger capacity investments by vaccine makers and accelerated distribution in Europe significantly.
B) In the current situation, paying for more production capacity would be better than offering higher prices for vaccines.
C) If the EU started paying prices above 100 euros per dose, it would on net reduce the cost of the pandemic to the EU via more lives saved and shorter lockdowns.
Short Positions
This week's US Economic Experts Panel statements:
A) Bans on the short selling of financial securities, such as stocks and government bonds, would lead to prices that are further, on average, from their fundamental values.
B) Requiring investors to disclose short positions in a stock at the equivalent threshold as they are required to do for long positions would improve the accuracy of stock prices.
A) Bans on the short selling of financial securities, such as stocks and government bonds, would lead to prices that are further, on average, from their fundamental values.
B) Requiring investors to disclose short positions in a stock at the equivalent threshold as they are required to do for long positions would improve the accuracy of stock prices.
