The Unassuming Economist

From a paper by Baioni Tomás:

“This paper addresses the macroeconomic effects of subnational carbon pricing initiatives, fo- cusing on California’s cap and trade. Using high-frequency data and regulatory news, I construct a carbon policy surprise series to understand the aggregate effects of a carbon policy shock using impulse response functions from a SVAR model. Results on a monthly basis suggest that a shock tightening the carbon pricing regime leads to an immediate significant reduction in carbon emis- sions by 0.05%, albeit this reduction in emissions comes at the expense of an immediate temporary fall in economic activity by 0.01%. On the other hand, results suggest that increasing carbon prices do not transmit to either household energy prices or consumer prices. Likewise, estimations suggest that a positive shock to carbon prices decreases the monetary policy rate and increases unemploy- ment, albeit not statistically significant at the 10%. I resort to local projections as robustness checks and find that the prior conclusions hold, i.e., that the California’s cap and trade initiative has significant macroeconomic effects. I check as well my prior results on a weekly basis and find strong support of my initial results: higher carbon prices decrease California’s economic activity by 0.5% after 17 weeks (4 months). Similar content being viewed by others”

From a paper by Vicente Ferreira, Alexandre Abreu, and Francisco Louçã:

“Over the period of 2021–2024, inflation has resurged and then retreated in most industrialized countries. Economists were divided into two main camps: team transitory, which argued that inflationary pressures were primarily cost-push and would tend to fade away as supply disruptions eased, and team permanent, which viewed it as a predominantly demand-pull process and warned about the risks of persistent second-round effects associated with an overheated labor market. This paper covers this theoretical debate on the origins of inflation and contrasts it to the available empirical evidence for the Euro Area, laying out several inconsistencies in the New Keynesian argument proposed by team permanent. Since that was, nevertheless, the predominant interpretation among central bankers, including the ECB, this paper also discusses the impacts of monetary policy decisions informed by the New Keynesian view, arguing that there is good reason to believe that it has had regressive consequences in terms of the functional distribution of income as well as differentiated impacts across Euro Area core and periphery countries.”

From a paper by Sommarat and Yana, Songsak Sriboonchitta:

“Environmental damage has become a pressing concern for researchers and policymakers worldwide, receiving significant attention in global discussions. Among the various contributors to environmental degradation, the emission of greenhouse gases, particularly carbon dioxide, stands out as a primary driver. CO₂ emissions arise predominantly from the burning of fossil fuels for energy, industrial processes, and deforestation, making them a central focus in efforts to combat climate change. The accumulation of GHGs in the atmosphere intensifies the greenhouse effect, leading to global warming, rising sea levels, and disruptions in weather patterns. This research examines the impact of corruption on carbon emissions in six ASEAN countries, incorporating indicators such as economic growth, renewable energy usage, and urbanization. Economic growth, while crucial for development, often leads to increased energy consumption and industrial activities, resulting in higher carbon emissions. Conversely, renewable energy adoption can mitigate these emissions by replacing fossil fuels with cleaner energy sources. Urbanization, a common feature of ASEAN countries, presents a dual challenge: while it drives economic development, it also increases energy demand and emissions, especially in the absence of sustainable urban planning. By analyzing the interplay between these factors, the research aims to provide insights into the role of governance in shaping environmental outcomes. The findings are expected to guide policymakers in designing strategies to reduce carbon emissions, enhance renewable energy adoption, and address the challenges posed by corruption in achieving sustainable development goals. The research findings reveal the presence of an Environmental Kuznets Curve in the studied ASEAN countries, characterized by an inverted U-shaped relationship between economic growth and carbon emissions. This suggests that at lower levels of economic development, emissions increase with growth, but beyond a certain income threshold, emissions begin to decline as economies adopt cleaner technologies and stronger environmental policies. The analysis shows that renewable energy has a significant negative impact on carbon emissions, highlighting its critical role in mitigating environmental degradation. Conversely, urbanization positively influences emissions, indicating that unplanned urban growth leads to increased energy consumption and pollution. Promoting sustained and inclusive economic growth while prioritizing investments in renewable energy is vital to reducing emissions. Urbanization must be managed with sustainable urban planning and infrastructure to minimize its environmental footprint.”

From The Economic Times:

“India Inc Friday condoled the passing away of former Prime Minister Manmohan Singh, saying he had conceptualised India’s resurgence with pathbreaking reforms across all areas of the economy.

The Federation of Indian Chambers of Commerce and Industry (FICCI) termed Singh as the architect of India’s economic liberalisation and the father of economic reforms, recognising his contribution to introducing the Liberalisation, Privatisation and Globalisation (LPG) reforms in 1991.

“With his visionary leadership, he set India on a new journey of growth, all-round development and global engagement. Alwa ..

Under his leadership as finance minister and later as prime minister, India witnessed unprecedented economic growth and emerged as a global economic powerhouse, FICCI said in a statement.

“His visionary policies and unwavering commitment to inclusive growth have left an indelible mark on India’s economic landscape,” it said.”

Continue reading here.

From Devdiscourse:

“The World Bank Group Scorecard FY24, published by the World Bank Group, offers a comprehensive plan to tackle today’s most critical global challenges. From addressing poverty and inequality to combating climate change and strengthening infrastructure, the report serves as a key guide for achieving sustainable growth and shared prosperity. It highlights the institution’s role in fostering global resilience amid ongoing economic uncertainties, pandemics, and geopolitical shifts.

A Renewed Focus on Poverty Eradication and Shared Prosperity

The World Bank Group continues to lead global efforts to eradicate extreme poverty and promote equitable economic opportunities. Aligning its strategies with the Sustainable Development Goals (SDGs), the Scorecard underscores the importance of fostering inclusive growth.

The report highlights the growing urgency to address systemic inequalities while building robust safety nets for the most vulnerable populations. These measures are critical for achieving stability and equitable access to education, healthcare, and economic resources, ensuring that no one is left behind.”

Continue reading here.