The Economics of Belonging is out! My book on how to rebuild an economy that works for everyone without giving up on globalisation is available from today in hard cover, as an e-book and in audio. Get yours here: tinyurl.com/EcBelong.
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Martin Sandbu
@MESandbu
I am the ’s European Economics Commentator & many other things. ft.com/martin-sandbu. Book: The Economics of Belonging (tinyurl.com/EcBelong). Views my own.
ft.com/martin-sandbuJoined February 2013
Martin Sandbu’s Tweets
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"Climate change is the biggest market failure the world has ever known and a subsidy race in green tech and carbon-free energy would be a race to the top not the bottom" @MESandbu 
The EU should welcome a green subsidy race ft.com/content/cb8c55
The EU should welcome a green subsidy race ft.com/content/cb8c552
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"Climate change is the biggest market failure the world has ever known and a subsidy race in green tech and carbon-free energy would be a race to the top not the bottom" 👉 The EU should welcome a green subsidy race
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Important exception there.
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Most commentators (1 exc. @MESandbu) emphasised that while inflation declined in January, it was to a still-hi 8.4% and that core inflation remained constant at 5.2%.
Most ignored the more important fact that the price level ACTUALLY FELL in Jan (on the flash estimate).
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Of course, the month-on-month rates can bounce around (& January figs are provisional estimates). But it is on these that policmakers, who need to be *forward-looking*, and commentators need to focus. The risk of 🇪🇺 monetary-policy overshoot is real.
À suivre.
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A tale of two policies:
as points out, in Jan 2022 miraculously expected output in 2024 was higher than in Jan 2020. Stimulus worked!
Now 2024 prediction is lower than in Jan 2020. Putin? Yup. But also dramatic rate hike. Overtightening is risk!
ft.com/content/469dc3
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🇪🇺⚡️Electricity Market Design: Review of the (non-)literature
The debate on electricity market design is now at the centre of EU energy policy, with the Commission to deliver a reform proposal by March.
Here’s a review of the key documents.
🧵Thread (with links).
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An excellent piece by . A complementary interpretation of IRA is that G20 countries with larger fiscal stimulus and trade deficits tend to take more protectionist measures. Evidence here:
drive.google.com/file/d/1nFWHt3
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Following up on this great piece by —
Buy-American provisions may actually push Europe to stop procrastinating on its own (huge) investment needs in green capital
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Extremely important.
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and that they cannot get what they want by force. They have to learn to be humble and that means they will have to be put in place. This brings us to Myth 2. All wars end with a diplomatic solution and therefore there will be a diplomatic solution to this war. 7/
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“The task is not to stop a European company from building a wind farm, battery factory or electric vehicle plant in the US, but to ensure they get built in Europe regardless.”
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"To see US spending on greening its energy, industry and transport as a threat reveals a European inferiority complex. The real threat is that the US fails to make good on its belated intention to address climate change."
<-- gets it
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Great piece
Must- read
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The EU should welcome a green subsidy race ft.com/content/cb8c55
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Sandbu always worth the read…
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The EU should welcome a green subsidy race ft.com/content/cb8c55
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The EU should welcome a green subsidy race ft.com/content/cb8c55
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Great analysis by on why healthy competition on green subsidies between US a& EU (and in general) should be welcome to tackle the global market failure of climate change.
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Interesting article by @MESandbu, particularly this part: “Climate change is the biggest market failure the world has ever known and a subsidy race in green tech and carbon-free energy would be a race to the top not the bottom. Europe’s embrace … on.ft.com/3RhEVQW
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1/ Russia substantially increased chip imports in 2022, past the pre-war peak. The value of chip imports is up from $1,8 bn recorded for Jan-Sept 2021 to $2,45 bn over the same period in 2022.
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The EU should welcome a green subsidy race - it's in everybody's interests, argues
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Important piece by :
"Climate change is the biggest market failure the world has ever known and a subsidy race in green tech and carbon-free energy would be a race to the top not the bottom."
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The EU should welcome a green subsidy race
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Think I'm with here - at least behind the headline. Just because a facility is built with subsidy in the US doesn't mean something similar won't be built in the EU.
The same, though, also applies to China...
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Interesting article by , particularly this part: “Climate change is the biggest market failure the world has ever known and a subsidy race in green tech and carbon-free energy would be a race to the top not the bottom. Europe’s embrace …
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: «Climate change is the biggest market failure the world has ever known and a subsidy race in green tech and carbon-free energy would be a race to the top not the bottom.»
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"The real bonus this year is keeping your job"
Goldman and other banks have taken the knife to bonus payments, but some traders still expect to be well rewarded. The FT's latest (anonymous) bonus survey awaits... #bonusseason
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In today's Free Lunch newsletter, I try to make sense of the world's least important migration crisis: Norway’s exodus of billionaires
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While high gas prices are lowering industrial output from Germany's chemical sector, employees do not appear to be working less (data upto Oct22).
Is this a sign that firms have outsourced gas-intensive, labour-light stages of value chains? Or something else?
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Interesting Free Lunch from on the Bank of Japan. He points out that yield curve control has bloated the BoJ's balance sheet less than the Fed and ECB's QE since implementation. ft.com/content/b3f035
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Next time Poland et al have to order tanks, what will they think of the geopolitical risk that German-made ones come bundled with?
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The #Leopards could be such a strategic asset for #Germany. For foreign policy, European security, even for the German economy. But if Germany continues its "Alleingang", insisting on its very own view of escalation risks, the Leopards become a liability for all three.
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In today's Free Lunch newsletter, I score the monetary situation in Tokyo as Bank of Japan 2 — Markets 1
Launched the first train connecting 🇺🇦 Ukraine and 🇷🇴 Romania.
Danger: long 🧵 ahead! :)
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🇵🇱⚖️🇪🇺💶 EU Recovery fund at work - judge Piotr Gąciarek, suspended from work by the now-defunct Disciplinary Chamber of the Supreme Court, has been reinstated by its replacement, the Professional Liability Chamber. 1/
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