Financial Risk Management and Climate Change Risk – The Experience in a Central Bank
Edited by: Antonio Scalia – Banca d’Italia
This book shows how a national central bank in the Eurosystem has adapted its financial risk management principles and practices against the background of non-conventional monetary policy measures and following the introduction of sustainability criteria, with a special role for carbon-neutrality. The topics covered include a market-based approach to evaluating credit risk, the development of an independent credit rating system, and the properties and limitations of agencies’ sovereign ratings. Furthermore, the book analyzes the integration of sustainability principles into strategic asset allocation and describes the use of machine learning techniques for discerning the role of the E, S and G variables in equity returns. The authors also discuss the growth of the global green bond market and the greenium, as well as the sustainability indicators for large portfolios of corporate and government securities.
Arguing About Tastes – Modeling How Context and Experience Change Economic Preferences
By: David M. Kreps with Alessandra Casella and Joseph E. Stiglitz – Stanford University, Columbia University
Arguing About Tastes makes the case that economists should abandon the principle that preferences are fixed and instead incorporate into their work how context and experience shape individual tastes.
David M. Kreps argues that the discipline must account for dynamic personal tastes when it comes to understanding social exchange, emphasizing human resource management and on-the-job behavior. He develops formal models that illustrate the power of intrinsic motivation and show why applying extrinsic incentives can be counterproductive. Kreps weighs the advantages and disadvantages of the principle de gustibus non est disputandum: there is no arguing about tastes. He calls for a new era of economics in which preferences are taken into account—and not for granted.
MegaThreats – Ten Dangerous Trends That Imperil Our Future, And How to Survive Them
By: Nouriel Roubini – New York University
There are no fewer than ten overlapping, interconnected threats that are so serious, he calls them Megathreats. From the worst debt crisis the world has ever seen, to governments pumping out too much money, to borders that are blocked to workers and to many shipments of goods, to the rise of a new superpower competition between China and the U.S., to climate change that strikes directly at our most populated cities, we are facing not one, not two, but ten causes of disaster. There is a slight chance we can avoid them, if we come to our senses—but we must act now.
In the 1970s, the U.S. faced stagflation: high rates of inflation combined with stagnant employment and growth. Today, we are heading toward a Great Stagflation that will make the 1970s look like a walk in the park.
Unequal Democracies – Public Policy, Responsiveness, and Redistribution in an Era of Rising Economic Inequality
Edited by: Noam Lupu, Jonas Pontusson – Vanderbilt University, Université de Genève
While economic inequality has risen in every affluent democracy in North America and Western Europe, the last three decades have also been characterized by falling or stagnating levels of state-led economic redistribution. Why have democratically accountable governments not done more to distribute top-income shares to citizens with low- and middle-income? Unequal Democracies offers answers to this question, bringing together contributions that focus on voters and their demands for redistribution with contributions on elites and unequal representation that is biased against less-affluent citizens. While large and growing bodies of research have developed around each of these perspectives, this volume brings them into rare dialogue. Chapters also incorporate analyses that center exclusively on the United States and those that examine a broader set of advanced democracies to explore the uniqueness of the American case and its contribution to comparative perspectives.
This book is open access.
