Winter 2021-22 Newsletter

Economics

COP26 – all hot air?

The Conference of the Parties 26 – more commonly known as COP26 – came  and went. Was the event a success or a failure? In COP26 – genuine progress or hot air? Frank  Eich and colleagues from CRU argue that the event itself didn’t deliver major breakthroughs but at  least established a platform for further progress. As predicted, the financial markets took centre  stage, suggesting that green finance is coming of age. The UK government’s green bond issuance  programme launched in 2021 and the new Green Savings Bond offered to households by  government-backed National Savings and Investments (NS&I) scheme are further proof that green  is going mainstream. If you want to understand more about Green Finance, consider our course, see  details below. 

Vaccines versus virus – freedoms for the vaccinated only?

Early 2021 was all about the rapid  rollout of vaccines in the fight against the Coronavirus. In January 2021 we discussed the economics  of the Covid pandemic and – applying economic principles – suggested that policymakers might end  up having to discriminate between the vaccinated and non-vaccinated to promote the public good.  We feel it is worth re-reading Special privileges for the vaccinated? as what then seemed farfetched  is now top of the policy agenda in many countries. Where compulsion is not attractive how do  governments incentivise vaccination? When are governments happy to leave restrictions to local  businesses or sports associations? As Australia’s Prime Minister is finding out with regards to entry  for the 2022 Australian Tennis Open, leaving the choices locally doesn’t always make the challenge  easier.  

Economics in action – inflation can something be permanently temporary?

When does  temporary become permanent? Can something be permanently temporary? What sounds like silly  semantics has become the top economic policy issue globally: the sharp rise in inflation in 2021,  much of it reflecting a bounce back from record-low energy prices in 2020 and disrupted global  supply chains. Central banks are increasingly concerned that supply chains will remain disrupted for  longer and inflationary expectations are drifting upwards. In June 2021 we argued in Crossing a line:  Is current inflation a threat to central bank independence? that central banks would try to “see  through” this period of inflation but might also raise interest rates modestly to signal that they were  in control of the situation. The Bank of England’s recent rate rise is a move in that direction for  example. Will inflation turn out to be temporary or permanent? We don’t know but what might be today’s big story might turn out to be yesterday’s news tomorrow – only five years ago policymakers  considered deflation – falling prices – as the biggest risk to the global economy. 

Strategic Career Development New Year, New Career?

There is something about the turn of the  year and your career. Perhaps it’s the natural break from work that gives you the space to reflect or  the realisation of a whole year ahead that gives you the feeling of possibilities for change. As part of  your thinking take a moment to reflect on your career in 2021. Did you have any career goals for  2021 and did you achieve them? Do you feel you steered your career in 2021 or did stuff just  happen? Either way, were the outcomes good? What was your best achievement or moment? Were  there any low points? A moment of reflection can give you insights to shape any changes you might  be considering for 2022 – good luck! 

Upcoming events and courses 

All economicsense courses are currently delivered online. The courses are interactive, fun and you  can learn from your home or office. 

Cost-benefit analysis for non-economists

9.30am–12pm 28th February, 1st, 2nd March 2022

Ideal for government analysts (outside economics), and policy and finance professionals who are  involved in preparing and reviewing business cases and impact assessments. The course will give  participants the skills to critique CBA analysis quickly and effectively. To book: Cost benefit analysis  for non-economists 

Introduction to Green Finance

9am-1pm 9th March 2022

The capital markets are playing an  increasingly important role in facilitating the shift towards a low-carbon economy – a fact reflected  by their prominent role at the COP26 in November 2021. This course gives participants an  understanding of what Green Finance is, why it matters, and what the future might hold. Course  participants will learn how financial markets function, who the key stakeholders are, and become  familiar with concepts such as stranded assets, green bonds or ESG investing. No prior knowledge  of economics or financial markets is required. To book: Introduction to Green Finance 9 March 2022 

Strategic Career Development

10am-1pm 31st March, 7th April and 16th June 2022

This course  is designed to support strategic career development for experienced analysts. Whether you are  considering promotion, looking to deepen your knowledge as an expert in your analytical field or  simply deciding what to do next, the course will provide you with tools to develop a fulfilling career. To book: Strategic Career Development

Economics for non-economists

9.30am–12pm 4th, 5th and 6th April 2022

This course provides  an accessible overview of economics. Topics include market structure and competition, market  failure and government failure, and international trade. At the economy-wide level we will discuss  growth, fiscal policy, and monetary policy. To book: Economics for non-economists