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'Economic Papers' best paper prize 2014

iain fraser 120x120An article by the School’s Professor Iain Fraser and co-authors Harry Clarke and Robert George Waschik, has been selected as the winner of the Economic Papers  Best Paper Prize for 2014. The paper titled 'How Much Abatement Will Australia's Emissions Reduction Fund Buy?' was officially announced as the winner at the 2015 Australian Conference of Economists in Brisbane in July.

Abstract: The economic implications for Australia for replacing its carbon tax policy with an Emissions Reduction Fund (ERF) scheme are examined. A computable general equilibrium model is used to show that the budget allocated for the ERF provides about 50 per cent of that required to meet Australia’s greenhouse gas abatement commitments.

The full article can be viewed on the Wiley website at


Researchers engage with key policymakers in Bangladesh

east west seminarProfessor Niaz Asadullah from the University of Malaya and Dr Zaki Wahhaj, a senior lecturer from Kent’s School of Economics, gave the keynote speech at a seminar titled ‘Child Marriage in Bangladesh: Current Situation and Potential Remedies’ on 3 September at East West University in Dhaka.

Niaz Asadullah and Zaki Wahhaj presented findings from the 2014 Women’s Life Choices and Attitudes Survey (WiLCAS) and Brac Adolescent Development Programme Baseline Survey. Invited guests at the event included the Bangladesh Minister for Cultural Affairs, Asaduzzaman Noor, and MP and Member of the Parliamentary Standing Committee on Women and Children’s Affairs, Mahbub Ara Begum Gini.

MaGHiC PhD Workshop

MaGHiC 120x120The Macroeconomics, Growth and History Centre (MaGHiC) is holding its first PhD Workshop today (Tuesday 1 September 2015). The morning session will provide general guidance for PhD students to become successful macroeconomists, while the afternoon session will consist of presentations by senior MaGHiC students in a conference format. The workshop is designed for MaGHiC member students and supervisors but anyone is welcome to attend.

The final programme can be viewed here.

Monetary policy at the zero lower bound

jagjit chadha squareDoes monetary policy really face a zero lower bound or could policy rates be pushed materially below zero per cent? And would the benefits of reforms to achieve negative policy rates outweigh the costs?

A column in Vox, which reports the views of the leading UK-based macroeconomists, including the School’s Professor Jagjit Chadha, suggests that there is no strong support for reforming the monetary system to allow policy rates to be set at negative levels. Click here to read the full article…

US cities and productivity in the railroad era

alex klein 120x120There is increasing evidence that cities offer externalities that raise labour productivity. A column in Vox by Professor Nicholas Crafts from the University of Warwick and the School’s Dr Alex Klein looks at the contribution of US cities to productivity growth at the turn of last century. The findings show that increased specialisation, promoted by improved transportation, was the key to productivity growth. Today's policymakers should heed this lesson. You can read the complete Vox article here.

The Vox piece was mentioned by Paul Krugman in his New York Times blog on 31 July. Click here to read his comments in full.

Greece: when is it time to forgive debt?

jagjit chadha squareAn article on Greece and the Eurozone by Jagjit Chadha, Professor of Economics at the School, has been published today in The Conversation

“Greek citizens preparing to vote in a referendum have been implored by their coalition government to reject a deal with the country’s creditors which, in actual fact, might have worked to keep the country afloat and on the road to some form of recovery. The offer that was on the table did miss out on something crucial, however. And it’s something which has become an established part of the narrative around the management of indebted nations: debt relief.

Click here to read the full article.

Testing for level shifts in fractionally integrated processes: a state space approach

stefano grassi

A new discussion paper by Davide Delle Monache, Stefano Grassi and Paolo Santucci de Magistris, KDPE 1511, June 2015

Non-technical summary

The phenomenon of long memory has been known for years in fields like hydrology and physics. The hydrologist Hurst (1951) was the first to formally study that long periods of dryness of the Nile river were followed by long periods of floods. A formal theory on long memory processes was subsequently formulated by Mandelbrot (1975), who introduced the fractional Brownian motion and studied the so called self-similarity property.

Work on banking system stability wins best paper prize

miguel leon ledesma 120x120Miguel Leon-Ledesma, Professor of Economics in the School, together with colleagues from the School of Engineering and Digital Arts, has won a best paper award at the 5th International Conference of the Financial Engineering and Banking Society (11-13 June 2015).

The work was motivated by the financial crisis and the two Schools have been developing a model of the banking system, which includes the interconnections between banks and their effect on the stability of the overall system.

German wage moderation and European imbalances: Feeding the global VAR with theory

miguel leon ledesma 120x120

A new discussion paper by Timo Bettendorf and Miguel A. León-Ledesma, KDPE 1510, June 2015

Non-technical summary

It is widely acknowledged that internal current account imbalances in Europe were an important factor behind the financial distress experienced by countries in the Eurozone. What is more controversial, however, is what the main drivers of these imbalances were. Several institutions mention the increase in German competitiveness since the late 1990s as an important determinant of these imbalances driven by German labor market reforms. Particularly, the decline in German real wages, relative to the Euro Area partners, is cited as a key factor.

'The new art of central banking' by Jagjit Chadha

jagjit chadhaFollowing the Long Expansion and the global financial crisis, money and monetary policy is now firmly linked (again) to both financial and fiscal stability. So how do we re-write the monetary rule book? Specifically, how many instruments do we have to control so many variables? And how should we deal with the unknowable threats that lurk in the nightmares of policy makers? And how much current growth are we prepared to give up in order to meet these threats?