International Relations

372 Items

Policy Brief

Supporting a Public Purpose in Research & Development: The Role of Tax Credits

    Author:
  • Jake Taylor
| June 2021

In this policy brief, we consider the existing mechanism of tax credits. We see how they can encourage private sector risk-taking to enable research and development (R&D) outcomes. However, our goal is to go beyond economic growth benefits, and to include the less tangible considerations of public good and public purpose in the research and development domain. We then suggest an expansion of tax credits focused on supporting the researchers involved in the R&D and encouraging innovation in both large organizations and in startups and small businesses. This approach builds upon the existing framework of agency-led, mission-defined support of the private sector used by the U.S. government, as occurs in other programs such as America’s Seed Fund (sometimes known by its acronyms, SBIR and STTR). The integration of specific agency- and mission-focused elements to the credit system ensures that these additive credits support research and researchers whose R&D outcomes will improve the health, prosperity, and opportunity for the U.S. as a whole.

Blog Post - Views on the Economy and the World

Will the GameStop Game Stop?

| Feb. 06, 2021

Whether one thinks that the overall equity market is currently valued properly or not, something very unusual happened in the last week of January to GameStop stock.  Its price rose 323 percent for the week, and 1,700 percent for the month (that is, an 18-fold increase). This was a speculative bubble. That is, the price departed from fundamentals.

Some investors who got in early and got out early made a lot of money. Just as many people, who got in too late or stayed in too long, lost a lot of money, as valuations came back to earth.

We focus on GameStop, an ailing bricks-and-mortar retailer of video games and consoles, for concreteness.  But a similar phenomenon has affected the prices of a number of other assets.

Participating in a speculative bubble is like playing roulette in a casino.  The role of “the house” in this casino is played by brokers such as retail-investment platform Robinhood or financial-services company Charles Schwab.  So far, not so unusual. Speculative bubbles happen from time to time.

Airbus A350 planes on the assembly line in Toulouse, western France, Tuesday, March 6, 2018.

AP Photo/Fred Scheiber

Policy Brief - Project on Europe and the Transatlantic Relationship and the German Council on Foreign Relations

Transatlantic Action Plan: Economics and Trade

    Author:
  • Anthony Gardner
| February 2021

Whereas the Trump administration worked effectively with Europe in some areas, including energy security and law enforcement, the U.S-EU relationship disintegrated in many other areas, above all in trade following U.S. tariffs on imports of aluminum and steel and threats to restrict car imports. While some members of the United Kingdom’s Conservative Party have appreciated President Trump’s endorsement of Brexit, the core interests of the United Kingdom (including free trade, the fight against climate change and defense of multilateral institutions) diverge from those of the Trump administration.

The next U.S. administration will face the challenge of re-engaging with Europe on matters of joint concern, not only on climate and Iran but also on concluding a trade agreement, resolving outstanding economic disputes and leading efforts to reform the World Trade Organization (WTO).

Rupiah coins in Medan, North Sumatra, Indonesia.

Binsar Bakkara/AP

Analysis & Opinions - Global Policy

Closing the Equity Financing Gap during the COVID-19 Crisis: The Emergence of Sovereign Wealth Funds with Expiration Dates

| May 29, 2020

Juergen Braunstein and Sachin Silva argue that sovereign wealth funds may be central to governments' efforts to balance public responsibility with private interests in post-pandemic economies.

teaser image

Analysis & Opinions - Global Policy

Factoring Pandemic Risks into Financial Modelling

| Apr. 01, 2020

Today’s economic crisis leaves us with an unsettling and perplexing regret. Why weren’t financial portfolios already adjusted for risks that stem from health events such as pandemics? After all, financial portfolios are adjusted for liquidity risks, market risks, credit risks, and even operational and political risks.

Blog Post - Views on the Economy and the World

Black Swans Like COVID-19 are Predictable

| Mar. 30, 2020

Events like the COVID-19 pandemic of 2020, the US housing crash of 2007-09, and the terrorist attack of September 11, 2001, are called “black swans”: in each case, few people were able to predict them reliably, at least not with precision.  But they were known unknowns, not unknown unknowns.  That is, in each case, knowledgeable analysts were fully aware that such a thing could happen, even that it was likely to happen eventually.  They could not predict that the event would happen with high probability in any given year.  But the consequences of each of these events were severe, and predictably so.  Thus, policymakers should have listened to the warnings and should have taken steps in advance. They could have helped avert or mitigate disaster if they had done so.

teaser image

Analysis & Opinions - The Economist

COVID-19 Pandemic Accelerates the Rise of Digital Payments

| Mar. 20, 2020

Could using the cash in your pocket have the potential to spread covid-19? That question has rarely appeared in the news, but many governments and leaders in the digital payments industry are wondering how the virus might impact the use of cash. Several countries have already taken drastic measures to limit circulation of bank notes. Could such interventions lead to the end of cash payments?