News

Interactions of fiscal and monetary policies under waves of optimism and pessimism

Professor Paul De Grauwe and Dr Pasquale Foresti have published a new article in the Journal of Economic Behavior & Organization, examining fiscal and monetary policies interaction under the assumption that agents have limited cognitive capabilities. To this aim, they employ a behavioral New Keynesian model in which agents’ beliefs generate endogenous waves of optimism and pessimism. 

Read the full article here.

The De-Institutionalisatoin of Power Beyond the State

Professor Jonathan White has been awarded Best Article in the European Journal of International Relations 2023 for his article on how crisis politics has seen institutions such as the European Union subordinated to and reshaped by individuals and the networks they form.

Read it here. 

The EU’s Increasingly Complex Finances: A Ticking Bomb?

Professor Iain Begg has recently published a paper for CESifo that looks at the challenges facing the EU's finances and how they have become more complex because of a proliferation of off‑budget mechanisms alongside the traditional budget. 

Read here.

A New Era for Europe

Dr Orkun Saka has recently contributed to a policy report published by the European Commission on "A New Era for Europe: Emerging Challenges". Based on their joint research, Dr. Saka and his co-authors discuss in the report how Covid-19 crisis may impact public trust in EU institutions in the long-term. Final report is publicly available and can be downloaded here. 

Book Review - Alt Finance: How the City of London Bought Democracy

Joseph Ganderson has reviewed a book co-authored by Marlène Benquet and Théo Bourgeron that traces the influence of a class of ultra-Eurosceptic financiers on the Brexit referendum for the LSE Review of Books.

Click here to read the review.

Turkey’s Economic Problems and Solutions

Dr Orkun Saka co-organised a workshop along with Professor Yaprak Gusroy (Chair, LSE Contemporary Turkish Studies) and the LSE Systemic Risk Centre on Turkey's economy, politics and institutions.

Read the full programme here.

Rising Rates, Spiralling Costs

Dr Angelo Martelli hs been interviewed by the Italian newspaper La Stampa on the European Central Bank and labour markets in the Eurozone.

Read the interview here.

'Glocalisation' of Music Streaming within and across Europe 

A new paper has been published under the EI's EIQ discussion paper series authored by Will Page and Chris Dalla Riva.

They write: "British artists accounted for all the Top Ten of the end-of-year singles chart of 2022 – for the first time since the charts were published over 50 years ago. A quick glance across the continent uncovered a similarly intriguing trend. Many of the top ten acts in Germany were German, many in Italy were Italian and all the top ten songs in Spain were in Spanish, although the vast majority were Latin American. These observations prompted us to ask a pertinent question: has the ubiquity of streaming increased or decreased the threat of homogenisation?"

Read the full paper here.

Criminalising the sex buyer

Dr Niina Vuolajärvi has penned a piece for LSE's social science magazine, Research for the World. In it she examines the debate of legalisation of sex work as legislation is presented in the European Parliament. Vuolajärvi urges policy makers to distance themselves from ideological stances and centre the experiences of sex workers in the design of policies and services.

Read here.

The extraordinary generosity of central banks towards banks

Along with Yumei Ji of University College London, Professor Paul de Grauwe has penned a piece for the Centre for Economic Policy Research (CEPR). They look at the policies Central Banks have adopted in Europe in relation to private banks in order to tackle inflation.

Read here.

The Myth of Peace and Statehood in European Integration Theory

Dr Eva Polonska-Kimunguyi has published a new article in the peer-reviewed journal, European Foreign Affairs Review. The article looks at early EU integration through the postcolonial lens and argues that both EU self-image and EU theory do not consider colonialism and empire and have silenced the violence committed outside Europe.

Read here.

Reconciliation by Stealth

Dr Denisa Kostovicova has a new book out, published by Cornell University Press. The work advances a novel approach to evaluating the effects of transitional justice in postconflict societies.

Buy the book here.

The Welfare States of Hungary’s Fidesz and Poland’s Law and Justice: Explaining the Surprisingly Divergent Trajectories

A new paper has been published under the EI's EIQ discussion paper series authored by Jakub Tomášek.

They write: "the Fidesz-led government in Hungary and the Law and Justice-led government in Poland have shared important similarities since assuming power in the last decade, from party ideology to selective engagement with collective bargaining institutions. Yet, their approach to the welfare state has markedly contrasted, with Poland expanding and Hungary retrenching welfare provision. This paper uses the method of difference to address this conundrum."

Read the full paper here.

Trauma as Revelation

For the April/May issue of The World Today, Professor Yaprak Gürsoy has penned an article looking at the effects the February earthquakes may have on President Erdoğan and the upcoming Turkish elections.

Read here.

The Risk of Isolating China

Lorenzo Codogno, Visiting Professor in Practice, has written an article for Domani on the the greater risks posed to the world economy of the isolation of China over Russia.

Read the original article here, and English translation here.

The Impact of Russia's Invasion on European Attitudes

A new paper has been published under the EI's EIQ discussion paper series authored by Margaryta Klymak and Tim Vlandas.

They write: "Despite historically low levels of interstate conflicts in the second half of the 20th century, the European continent is once again facing the threat of war at its doorstep. Public opinion plays a crucial role in shaping public policies so whether and how the Russian invasion has affected the attitudes and views of citizens in other countries will be an important factor in European governments’ continuing humanitarian and military support to Ukraine."

Read the full paper here.

Accounting for Net Zero

Gijs de Vries, Visiting Senior Fellow, for the IMF Blog looks at the existential risks of climate change, biodiversity loss and pollution and how they should lead influential bodies to upgrade their audits and join the global net-zero coalition.

Read more.

Brothers no more?

Serbia and Kosovo have both given approval to an EU-brokered agreement on normalising their relations. Dr Denisa Kostovicova assesses the significance of the agreement and what a resolution to the Kosovo dispute would mean for Russia’s power in the Balkans in a new EUROPP Blog entry.

Read more.

Earthquake economics 

Dr Orkun Saka has recently been interviewed by Arirang News (a Korean news channel broadcasting in English) on the potential economic consequences of the recent earthquakes in Turkey.

The interview and the related news can be watched on YouTube here.  

Social tracking methodology for the EU budget

Professor Iain Begg has completed a recent study requested by the European Parliament's Committee on Budgets (BUDG) that explores what the current state of social tracking in the MFF and RRF is, how it could be improved & put forward a proposal for a theory-based monitoring for EU social spending tracking.

Read more from the study here.

Do cultural stereotypes influence bank investment? 

For his research paper on “Cultural Stereotypes of Multinational Banks” published under the EIQ discussions series, Dr Orkun Saka has recently been interviewed by Tim Phillips in a podcast episode of VoxTalks Economics.

Listen here.

The Zelensky Effect

EI alum Dr. Olga Onuch has co-authored a book with Dr. Henry E. Hale called "The Zelensky Effect" that explores Ukraine’s national history. Interweaving social and political background with compelling episodes from Zelensky’s life and career, the book shows how its now-iconic president reflects the hopes and frustrations of the country’s first ‘independence generation’. 

Buy the book here.

Tactics for taming inflamation

Professor Paul De Grauwe and Dr Yuemei Ji (UCL) have co-written another article on their research, this time for Project Syndicate, that argues the best way to avoid a windfall for bankers – and a burden for taxpayers – is to shrink the central bank’s balance sheet by selling government bonds while implementing a temporary increase in minimum reserve requirements.

Read more here.

Monetary policies, bank subsidies 

Professor Paul De Grauwe and Dr Yuemei Ji (UCL) have co-written a new column for The Centre for Economic Policy Research (CEPR) that looks at how central banks pay interest on commercial banks’ holdings of cash reserves at the central bank. This column argues that a better policy would be to combine sustained sales of government bonds with higher minimum reserve requirements.

Read more here.

Professor Kevin Featherstone awarded honorary Greek citizenship

Professor Kevin Featherstone was granted honorary Greek citizenship for his academic work on Greece and for his significant contribution to the promotion of research and debate on contemporary Greece and Cyprus.

In a special ceremony held at Maximos Mansion, on Tuesday 21 February, he took the Greek Citizen oath before the Prime Minister, Kyriakos Mitsotakis and the Secretary General of Citizenship, Athanasios Balerbas.

“I was born English - surely some mistake - but today I became Greek, and it is a great honour for me to be Greek now; it means a lot to me, and I am very proud. Thanks to everyone who helped me on my journey. Greece is a country, a people, an idea that I have learned to love very much. It has given me so much. Thank you very much.”

Watch the video of the ceremony here and read the press release.

Cultural Stereotypes of Multinational Banks

A new paper has been published under the EI's EIQ discussion paper series: "Cultural Stereotypes of Multinational Banks", authored by Barry Eichengreen and Dr Orkun Saka.

They write: "The effect of stereotypes is persistent over time, stronger for less diversified banks, and weaker for target countries whose bonds appear more frequently in bank portfolios. Cultural stereotypes are particularly salient when governments are hit by sovereign debt crises."

Read the full paper here.

Community is the Strategy

A new episode from Visiting Fellow Dr Idil Elveris on her podcast "We Can Find A Way" featuring Emily May, co-founder of the NGO "Right To Be" which tackles street harassment through education and training including bystander intervention programmes.

Listen here.

Re-Politicising Merger Policy: Regulating Foreign Takeovers in Britain and Italy

A new paper has been published under the EI's EIQ discussion paper series: "Re-Politicising Merger Policy: Regulating Foreign Takeovers in Britain and Italy", authored by Bernardo Rangoni and Mark Thatcher.

They write: "While much attention has been given to ‘de-politicisation’, its reversal through ‘repoliticisation’ is also possible. We examine ‘institutional re-politicisation’ - increases in the formal powers and discretion of elected politicians’ - in hard cases - policies for regulating Cross-Border Mergers and Acquisitions (CBMAs), focusing specifically on Britain and Italy."

Read the full paper here.

Cultural stereotypes of multinational banks: how biases spread and affect bank lending to governments

Dr Orkun Saka has had an article and book recommendation included in January's LSE Research for the World.

In his article, 'Cultural stereotypes of multinational banks', Dr. Saka writes: "Experts in finance tend to characterise the investment decisions of financial institutions as driven by careful evaluation of hard information. We emphasise, in contrast, that the international investment of multinational banks are also influenced by deeply held cultural stereotypes about the trustworthiness of different nationalities."

Read the article here and find Dr. Saka's book suggestion on the recommended reading list here.

Completing a Genuine Economic and Monetary Union

Professor Iain Begg has published a new short book with Cambridge University Press, Completing a Genuine Economic and Monetary Union.

The book examines efforts to strengthen Economic and Monetary Union in the European Union, especially over the last decade, asking if enough has been done to render it more sustainable and resilient. Drawing on a survey of 111 leading experts on the economics and politics of EMU, this Element reviews the wide-ranging reforms undertaken since the crises of the early 2010s and assesses whether they go far enough.

Find it here.

The phone tappings shouldn’t be an excuse to disempower a PM

Professor Kevin Featherstone has written a new article for eKathimerini, discussing the impact a phone-tapping scandal might have on the next election in Greece.

He writes: "The phone-tapping scandal may determine the outcome of the next election in Greece. It ought not to reverse the changes made to the i

Bank lending to governments influenced by cultural stereotypes in Europe

A recent research paper co-authored by Dr Orkun Saka has been featured by The Banker. The paper outlines how culturally-motivated trust biases of bank managers affect their banks’ sovereign debt investments.

Interviewed by The Banker, Dr Saka commented: “We think that the best remedy to counteract such cultural biases is to improve the national diversity of these managerial teams at headquarters making sure that all cultural views are represented in decision-making. As some cultures have positive and others have negative perceptions of the same target investment (e.g. government bonds of a target country), this would tilt decision-making towards a more balanced perspective”. 

The full story can be read here and the related research paper could be accessed here.

4th LSE Workshop on Political Economy of Turkey

The European Institute, Systemic Risk Centre and Contemporary Turkish Studies at the London School of Economics and Political Science are jointly organising the 4th LSE Workshop on Political Economy of Turkey.

The workshop will be hybrid (at LSE campus & online), and will take place on 2nd June 2023. It will feature around 7 selected presentations, and culminate in a public keynote lecture by Sebnem Kalemli-Ozcan (University of Maryland). The event is co-organised by Dr. Orkun Saka alongside a programme committee including EI faculty members Prof. Chris Anderson, Prof. Paul De Grauwe and Prof. Yaprak Gursoy.

The call for papers can be found here and the workshop website here.

UK Strikes

Dr Orkun Saka has recently been interviewed by TRT Haber (news channel of Turkish State TV) on the issue of ongoing labour strikes in UK.

He commented that the potential bans on certain professions (such as nursing) will not be sufficient to prevent the strikes in the short-term and the increased push on wages due to labour shortages in the post-Brexit period will continue to affect the country in the medium-term.

Policy-makers must not look to the “Nordic model” for sex trade legislation

The “Nordic model” of sex trade legislation purports to target sex buyers and third-parties, ostensibly removing sex sellers from criminalisation. However, this approach leaves sex sellers, in particular migrant workers, ever more vulnerable to violence and exploitation, according to a report published by Dr Niina Vuolajärvi.

The report’s conclusions are based on 210 formal interviews with sex workers, police, social workers, and policymakers in Sweden, Norway and Finland, alongside policy and legal analysis.

Read Dr Vuolajärvi's report here.

Cultural Stereotypes of Multinational Banks

Dr Orkun Saka has published a new working paper at the National Bureau of Economic Research (NBER) on Cultural Stereotypes of Multinational Banks.

With his co-author Barry Eichengreen, they employ hand-collected data spanning more than a decade on European banks’ sovereign debt portfolios and show that the trust of residents of a bank’s countries of operation in the residents of a potential target country of investment has a positive effect on the bank's cross-border exposures. They go on to trace how cultural stereotypes could spread from bank branches to headquarters through internal managerial flows within banks and illustrate how negative stereotypes become more salient during times of sovereign debt crises.

The NBER working paper can be accessed here. You can also read it on CEPR here.

‘I’m in crisis every day’: prices outpace Belgians’ inflation-matched pay

Paul De Grauwe has been featured in an article from the Guardian, discussing the impact of inflation on the cost of living in Belgium.

"Paul De Grauwe, an economist at the London School of Economics and former Belgian MP and senator, does not see much evidence of a wage-price spiral. Belgian inflation is close to the European average, he points out, and its consumer prices index in November was slightly lower than Germany’s (11.3% as estimated by Eurostat).

Indexation could prove tricky for some firms, however. “The adjustment will be 10-11% all at once in January, so that is potentially a big shock,” De Grauwe said."

Read the full article here.

Broken Britain feeling the pinch as RMT leads Christmas strikes

Professor Bob Hancké has been quoted in an article from the National News, discussing the forthcoming strike action over the Christmas period.

He said: "Trade unions have understandably not been very happy with 12 years of Tory government. The austerity of the first seven years, and the incompetence of the last five, including some of the corruption and sleaze, has now also cut through to the public at large, and unions in the sectors on strike are capitalising on the combination of labour market power and a broad sense of political malaise."

Read the full article here.

Lessons from Italy’s economic decline: Exploring how some of Italy’s traps may become future challenges for the UK economy

Is the British economy following Italy’s declining growth path, as The Economist recently suggested for politics?

In a recent comparative paper with Giampaolo Galli on “Lessons from Italy’s economic decline: Exploring how some of Italy’s traps may become future challenges for the UK economy”, Lorenzo Codogno discussed what (negative) lessons could be drawn from Italy’s experience.

It is a chapter of a book published by the LSE’s Centre for Economic Performance and Resolution Foundation as part of a large-scale project called the “Economy 2030 Inquiry”, which will set out ideas for the UK as it navigates economic challenges in coming years. Mr Codogno recently presented the paper at a round table on “Britain’s next decade: Lessons from overseas” at the “Festival of Economics 2022” in partnership with Economics Observatory and Bristol Ideas, Bristol, 17 November 2022.

 Read more here.

The world is in a mess… it usually is

Professor Kevin Featherstone has written a new article for eKathimerini, discussing the impact and state of various global situations.

He writes: "After a period of uncertainty and speculation as to his whereabouts, Oscar Wilde responded to journalists’ questions by declaring, “Reports of my death have been greatly exaggerated.” Those convinced that current international threats and instability presage the decline of the West warrant a similar response."

Read the full interview here.

Book Review: Europe: A Philosophical History, Parts 1 and 2 by Simon Glendinning

Professor Simon Glendinning's new two-volume book has been featured for a review by LSE Blogs.

"In his two-volume work Europe: A Philosophical History, Simon Glendinning explores how emblematic European philosophers have understood Europe and detected a pattern or trajectory to its development. Full of illuminating detail, there is much to be gained from reading these books, writes Jonathan Wolff, as Glendinning’s skill as reader, expositor and critic shines throughout."

Read the full review here.

Economic Challenges for Europe After the Pandemic

Lorenzo Codogno has contributed a chapter to a new book recently published: Economic Challenges for Europe After the Pandemic.

His chapter, titled 'Assessing Next Generation EU', looks at the unprecedented fiscal package adopted by the European Council in Summer 2020. Learn more here.

Restorative walk: healing through interaction with abuser

LSE European Institute Visiting Fellow Dr Idil Elveris has shared a new episode of her podcast WeCanFindAWay, covering issues relating to conflict. In this episode, guest Gemma Maria Varona Martinez describes “restorative walks” as a concept, especially in times of human rights violations.

Gemma explains why a concept like restorative walk is needed for a person’s search for justice, not only in political violence cases but also in environmental cases, and how an activity like walking could repair harm for victims.

Listen to the episode here.

Trust and Monetary Policy

Professor Paul De Grauwe will be awarded an Honorary Doctorate from the University of Murcia, Spain on 7 October. Congratulations!

He will also give a seminar on "Trust and Monetary Policy" during his stay in Murcia.

Financing higher education : A strategy and lessons from the UK

Professor Nicholas Barr gave an online lecture on 'Financing higher education: A strategy and lessons from the UK' at the Sixth panel of scholars and academics: Rethinking the funding system of higher education: A new public education for Chile on 4 October.

Pension: What have we learned since 2000?

An article co-authored by Professor Nicholas Barr has been published in a Spanish language paper reflecting on 20 years of pension reform.

Read it here, on pages 51-95: Prosperidad Y Pensiones

30th Anniversary of the Maastricht Treaty International Conference

Professor Paul De Grauwe gave a keynote lecture on the governance of the Eurozone, while attending the 30th Anniversary of the Maastricht Treaty International Conference in Maastricht on 29 September.

Reforming pensions to protect adequate and sustainable benefits

Professor Nicholas Barr has written an article discussing the reformation of pension design, to protect workers close to retirement.

He writes: "Given the number of people and the costs involved, it is important that pensions adjust to changing economic and demographic circumstances. The design of a country’s pension system, including benefit levels, pension age, and incentives that influence the choices individuals face when planning for their retirement, matter both for safeguarding old-age security and to protect the long-term financial stability of the system."

Read the full post here.

Perpetuating Crisis as a Supply Strategy

Natascha Zaun has published a new journal article, titled: "Perpetuating Crisis as a Supply Strategy: The Role of (Nativist) Populist Governments in EU Policymaking on Refugee Distribution".

She writes: "We still know very little of how populist governments behave as compared to mainstream governments in Council decision-making. Studying the ‘crucial case’ of negotiations around refugee distribution in the EU, an issue which allows populists to mobilize both anti-EU and anti-immigrant sentiment, we demonstrate that populist governments differ from mainstream ones in three important ways."

Read it here.

Trussonomics for dummies

Professor Nicholas Barr has published a blog discussing the recent mini-budget revealed by the Government.

He writes: "In the face of high inflation, the government’s mini-budget on 23 September was concerned mainly with the largest tax cuts in 40 years, projected at nearly £45bn by 2027, together with an increase in government borrowing of £72bn (see also analyses by the Institute for Fiscal Studies and the Resolution Foundation)."

Read the full post here.

Reconciliation must be part of peace

LSE European Institute Visiting Fellow Dr Idil Elveris has shared a new episode of her podcast WeCanFindAWay, covering issues relating to conflict. This time, she spoke with the women from the Parents Circle, an organization that consists of more than 600 bereaved families from Palestine and Israel who believe in non-violence and reconciliation.

Guests Robi Damelin and Layla Alsheikh talk about the importance of reconciliation and seeing the other as human and developing empathy despite the ongoing occupation and warfare in their countries.

Listen to the episode here.

Perpetuating Crisis as a Supply Strategy

Dr Natascha Zaun has published a new paper, titled Perpetuating Crisis as a Supply Strategy: The Role of (Nativist) Populist Governments in EU Policymaking on Refugee Distribution.

She writes: "We still know very little of how populist governments behave as compared to mainstream governments in Council decision-making. Studying the ‘crucial case’ of negotiations around refugee distribution in the EU, an issue which allows populists to mobilize both anti-EU and anti-immigrant sentiment, we demonstrate that populist governments differ from mainstream ones in three important ways."

Read the full article here.

Planning for the future: the funding challenge

Professor Nicholas Barr gave a talk on ‘Planning for the future: the funding challenge’ at the Universities UK Annual Conference: Facing the future with confidence, in Leicester on 7 September 2022.

Meritocracy, Growth, & Lessons from Italy’s Economic Decline

Lorenzo Codogno has co-authored a new book recently published by Oxford University Press, Meritocracy, Growth, & Lessons from Italy’s Economic Decline: Lobbies (and Ideologies) Against Competition and Talent.

The book investigates the deep-rooted causes of Italy’s failure to deliver on economic growth and prosperity, explores the complex historical vicissitudes that led to the prominence of connections over merit in many key aspects of Italian society and economy, uses international comparisons on social capital, governance, the role of the public sector, social mobility, financial structures, and more to evaluate Italy’s economic performance.

Learn more here.

The United Kingdom’s next prime minister may be an even bigger Brexiteer than Boris Johnson

Professor Kevin Featherstone has been quoted in an article, discussing the politics of the new Prime Minister Liz Truss.

He said: "Kevin Featherstone, a professorial research fellow in the European Institute at the London School of Economics, said that toughness on the EU has transcended actual policy goals and is now a culture war issue. To go after bureaucrats in Brussels is to shore up your populist appeal. Being anti-EU is a vibe, whatever the policy stakes and fallout."

Read the full article here.

The relevance of strengthening welfare states and the role of the state in pension systems

On 31 August, Professor Nicholas Barr gave a keynote lecture [online] on the topic of ‘The relevance of strengthening welfare states and the role of the state in pension systems’.

The speech took place at the Second Regional Seminar on Social Development: ‘Social Security and the Protracted Crisis: An Opportunity to Combat Inequality in the Framework of a Welfare State in Latin America and the Caribbean’, United Nations Economic Commission for Latin America and the Caribbean, Santiago, Chile.

You can view here the video and Professor Barr's slides.

Hatred is mostly born from lack of freedom

Dr Sanja Vico was interviewed about Western Balkans politics for Al Jazeera Balkans. She discussed the issues of democracy, identity, transitional justice, and talked about her research on the role social media in transitional justice process, part of LSE JUSTINT project. Available here.

Her main arguments can be summarised as: (1) identity politics hinders democracy in the WB region, (2) constitutional patriotism may be a good solution for overcoming divisions in the region, and (3) social media are like a stage and therefore have a limited potential to facilitate a genuine dialogue on the issues of past conflicts.

Italy’s Far-Right Favorite Aims to Stick to EU Budget Rules

Dr. Marta Lorimer has been quoted in an article from Yahoo News, regarding Italian far-right leader Giorgia Meloni planning to stick to European Union budget rules if she leads the next government.

Dr. Lorimer said: “Meloni has been very good at differentiating herself from mainstream parties without scaring voters off. While Orban remains a great source of inspiration for all right-wing parties, she won’t campaign on an anti-euro agenda like Salvini once did and her economic policies will focus more on cutting taxes than on state intervention.”

Read the article here.

Citizens' assembly for managing conflict

LSE European Institute Visiting Fellow Dr Idil Elveris has shared a new episode of her podcast WeCanFindAWay, covering issues relating to conflict. In this episode, they discuss the Citizens’ Assembly in Ireland which resolved the most contentios abortion issue in Ireland through a deliberative democracy model. Guest Barry O’Mahoney, who was a facilitator in the assembly, argues that if the Brexit was discussed on the basis of a citizens assembly it would have turned out differently.

"Citizens' assembly is a deliberative democracy model especially for talking about contentious issues in society. It worked in Ireland to resolve a never ending contentious issue like abortion. How was this model developed; how did it work; how were citizens selected, on the basis of which criteria; what were the principles employed during the process; can it be used in other countries?"

Listen to the episode here.

Gen Z: How young people are changing activism

The BBC conducted an interview with Dr. Orkun Saka about the potential impact of Covid-19 on how Gen Z views politics, based on Dr. Saka's recent research into the topic. 

Dr. Saka was quoted saying: “[After epidemics] While young individuals withdraw from formal politics – which is not that surprising, given their lack of trust – they also tend to increase their participation in the democratic process via alternative and more direct means. They may become more critical towards their political leaders and governments, which is not a bad consequence in and of itself.”

The related academic article has recently been accepted for publication at The Economic Journal and an open access version can be found here.

The Boris story: Ending like it started

Professor Kevin Featherstone has written an article published in eKathimerini, discussing the resignation of Boris Johnson as UK Prime Minister.

Professor Featherstone writes: "His impact was one of the lowering of moral standards in public life and bravado about Brexit, while creating a mess. An official investigation will report his unacceptable delays in dealing with Covid. The Boris effect was more about emotions than substance. As Christine Lagarde might say, “the adults are back in the room.”"

Read the full article here.

Digital Divide Exacerbated During Recent Epidemics, Research Reveals

The Fintech Times, world’s leading media outlet on FinTech issues, featured a research paper co-authored by Dr. Orkun Saka on how epidemics affect individuals’ usage and adoption of various financial technologies, which is now forthcoming in the Journal of Money, Credit and Banking. Various other outlets such as Crowdfund Insider and Finextra also covered the same research paper.

Dr. Saka was quoted saying: “This evidence tells us that although we have seen a swap from in-person to online banking over recent epidemics, including Covid-19, banks should think twice before permanently closing bricks and mortar branches. After every epidemic we studied, people almost always returned to in-person banking.” 

The forthcoming version of the academic article can be found here and an open access version here.

Italy's president refuses Prime Minister Draghi's resignation

Lorenzo Codogno has been quoted in an article from the Times of Malta, discussing Italian President Sergio Mattarella's refusal to accept Prime Minister Mario Draghi's resignation.

The article reads: ""Unless there is a last-ditch compromise, a formal government crisis looks inevitable," Lorenzo Codogno, a professor at the London School of Economics".

Read the full piece here.

Inflation: What's going on right now?

Demand is going up, supply is going down, and costs are rising. Everything that causes inflation is operating together. 

In this short video, Professor Nick Barr explains what's happening to cause prices to rise so drastically in 2022 — not just in the UK, but around the world.

Watch the video here.

World Bank funding may come back to haunt us

BizNews featured a research paper co-authored by Dr. Orkun Saka on the government’s strategic manipulation of state-bank lending in Turkey, which was published in The Economic Journal last year.

It said: "[These findings] should be cause for great concern, not only because of the ruling party’s well documented history of malfeasance, but also because of the surge of political party opposition in the country where the ruling party continues to lose in key municipal battlegrounds."

The published version of the academic article can be found here and an open access version here.

Meritocracy, Growth, and Lessons from Italy's Economic Decline

Lorenzo Codogno has co-authored a new book, looking at the economic state of Italy.

The book investigates the deep-rooted causes of Italy's failure to deliver on economic growth and prosperity, Explores the complex historical vicissitudes that led to the prominence of connections over merit in many key aspects of Italian society and economy and uses international comparisons on social capital, governance, the role of the public sector, social mobility, financial structures, and more to evaluate Italy's economic performance.

Learn more here.

Retirement dreams, busted

Professor Nicholas Barr’s has been quoted in an article from Politico, discussing the issue with European pension schemes being stretched thin.

He said: "You've got the long-term needs of a pension plan colliding with the pressures of short-term politics. And the pressure of short-term politics say young people don't vote and old people do. So you’ve got a political bias."

Read it here.

Crisis and Complementarities: A Comparative Political Economy of Economic Policies after COVID-19

Dr. Bob Hancké, Toon Van Overbeke and Dustin Voss have published a new paper in Perspectives on Politics, looking at economic policies post-COVID-19 pandemic.

They write: "Our results serve as a cautionary tale to policymakers that introducing policy elements developed in other institutional contexts is complex and challenge us to consider systematically the way in which institutional frameworks actively shape policy outcomes."

Read it here.

Pensions: how much choice?

Professor Nicholas Barr’s paper ‘Pensions: How much choice?’, was published by CENIE International Centre on Aging and in Spanish as  ‘Pensiones: ¿Cuántas opciones hay?’, Centro Internacional sobre el Envejecimiento.

Read it here.

Economics of the Monetary Union

The fourteenth edition of Professor Paul de Grauwe's book, Economics of the Monetary Union, has now been released.

In the only textbook to focus on both the costs and benefits of monetary unions, Paul De Grauwe explores current issues surrounding the Eurozone and critically analyses the theories and policies relating to monetary union.

New information in this edition includes content related to the effects of Covid-19 on the Eurozone and European Central Bank, as well as additional end-of-chapter questions enabling students to recap their understanding of the concepts and theories presented. Learn more here.

Perspectives on staying & leaving in war

LSE European Institute Visiting Fellow Dr Idil Elveris has shared a new episode of her podcast WeCanFindAWay, covering issues relating to conflict. The latest episode looks at the stories of two people affected by the conflict in Ukraine: Tatyana Bilyk, a family mediator from Ukraine who has shared her experience through two letters, and Sergey Ponomarev, a Russian photographer who had to leave Russia after government pressure, and who has covered significant incidents in Russia and beyond through his career.

Dr Elveris said: "I wanted to tell their stories for several reasons: the somewhat ironic fact that [Tatyana] is still in Ukraine while [Sergey] left Russia, their respective professions playing out in unexpected ways in the current conflict (her role as mediator but now finding herself in the midst of conflict, his role of photographer of refugees becoming a refugee himself)."

Listen to the episode here.

Ideas and European Education Policy 1973-2020

Dr. Marina Cino Pagliarello has published a new book, Ideas and European Education Policy 1973-2020. The book is the main output of her PhD and of the ESRC grant she was awarded.

According to publishers Palgrave MacMillan, the book "constructs a novel three-stage analytical framework which captures how ideas open new political spaces, chronicles the transformation of European education from a national to a supranational concern and highlights questions about the role of European business in education".

Learn more here.

International Genç Ekonomistler Congress

Dr. Orkun Saka has delivered a keynote speech for the 5th International Genç Ekonomistler Congress on the political consequences of financial crises and epidemics. The recording of his full speech (in Turkish) can be found here.

Political Scar of Epidemics

A research article by Dr. Orkun Saka and his co-authors (Barry Eichengreen and Cevat Aksoy) on the “Political Scar of Epidemics” has been accepted for publication by The Economic Journal, one of the world’s oldest and leading journals in economics.

They write: "Epidemic exposure in an individual’s “impressionable years” (ages 18 to 25) has a persistent negative effect on confidence in political institutions and leaders. This loss of trust is associated with epidemic-induced economic difficulties, such as lower income and unemployment later in life."

The latest NBER working paper can be found here.

We need a regional approach to justice after mass atrocity

Dr. Denisa Kostovicova has been featured in an article discussing countries confronting their legacies of atrocity in order to build peace.

Dr. Kostovicova writes: "My research shines new light on the hotly debated role of civil society and human rights non-governmental organisations (NGOs) in post-conflict peace-building. It points to the perils of the prevailing narrative, in much of the recent scholarship and in some practitioner circles, about the negative role of civil society and human rights NGOs in post-conflict societies."

Read the full piece here.

Less choice is better: LSE research guides Swedish pension reform

Professor Nicholas Barr was featured in a piece looking at Swedish pension reform and his role in it.

"The conclusion of nearly a decade of discussion and collaboration, the Law Council referral (preliminary bill or “lagrådsremiss” in Swedish) “quotes the extraordinary consultation of the London School of Economics”, the email continues. While, inevitably, compromises have been made along the way, a system facing significant stresses is now more sustainable, with changes that will benefit ordinary citizens. As the official puts it – “the dream is alive!”."

Read the full piece here.

COVID-19 and Trust among the Young

Dr. Orkun Saka's has co-authored a new opinion piece in the June issue of the IMF’s Finance & Development, looking at the impact of governments' response to major world events on the trust young people have in politicians.

They write: "Without trust, politicians struggle to convince people to follow their advice and instructions. From COVID-19 to climate change and now the Russian invasion of Ukraine, governments are asking or telling people to alter their behavior and make sacrifices—great sacrifices in the case of war."

Read the full article here.

LSE's Research Excellence Framework 2021 results announced

The results of the latest Research Excellence Framework (REF) have been released, with the European Institute found amongst the top departments of European study.

Professor Jonathan White, department Deputy Head, said: "REF 2021 results have now been published, and the European Institute is proud to be ranked amongst the very top departments for the study of Europe.

"Our research environment was ranked second amongst the units assessed, and our impact fifth. 94% of our evaluations were scored 4* or 3*, putting us fifth overall by this measure. We were seventh across all of Area Studies in REF 2021.

"As a department with global expertise on the study of Europe in its many dimensions, we look forward to extending our research in the coming years to keep pace with Europe’s shifting challenges and rapidly evolving place in the world."

Find out more about the School's results here.

Labour: Election results ‘not quite good enough’ for Starmer to topple Tories - expert

Professor Kevin Featherstone has been featured in an article analysing the results of the recent local elections.

"Professor Kevin Featherstone, a politics academic at the London School of Economics and Political Finance, told Express.co.uk that while the local election results were disappointing for the Tories they’re “still not quite good enough for the opposition parties”."

Read the full article here.

Pressure mounts on Boris Johnson: Will the PM face a Tory leadership vote?

Professor Kevin Featherstone has been interviewed in the Express, looking at the potential results of the forthcoming local elections and its ramifications for the Prime Minister.

He said: "Even if the Privileges Committee came back to say that he should be suspended for a day etcetera, I think Boris might still survive on the basis that like the fixed penalty notice he’s apologised and accepted that he was wrong."

Read the full article here.

The European Institute and me

Closing our series to mark the 30th anniversary of the European institute at LSE, Adam Austerfield (MSc Political Economy of Transition in Europe, 1998) shares his own story.

He writes: "It was a lot of fun, and LSE began to get under my skin and into my brain (often making the latter hurt). I would often discreetly slide away from my desk and “bunk off” to listen to faculty on areas I had found myself working with, or daytime public lectures on a whole range of subjects."

Read the full blog article here.

Income-contingent loans and the finance of higher education

Nicholas Barr gave an online keynote lecture on ‘Income-contingent loans and the finance of higher education: Lessons from economic theory and international experience’ at a conference on Higher education funding models and the possible impact of changing the funding system, Tartu, Estonia 28 April 2022.

A lesser evil: Young French voters struggle to back Macron despite worries over Le Pen

Dr Marta Lorimer has been interviewed by Yahoo News, for an article looking into young French voters' uncertainty around the election.

She said: "It has become more evident that yes, Le Pen has detoxified the brand and changed some of its positions, but also that there’s not much of a difference between the fundamentals of the old National Front and the new National Rally. I think voters are beginning to see that. Some voters have always seen it."

Read the full article here.

Epidemics can lead to a long-term loss of confidence in leaders

Dr. Orkun Saka's research on epidemics and political trust has recently been quoted by a South African news publisher, EWN.

"This point is further elevated by Orkun Saka, visiting fellow in the European Institute, who conducted extensive research on the impact of epidemics on young people’s confidence in those in power and produced thought-provoking results showing that public trust is vital if governments are to effectively lead. Once lost, that trust is hard to win back and cannot be disputed that pandemic opened a gap between authorities and electorates."

Read the full article here.

Le Pen’s Resilience Makes France’s Election a Much Closer Race

Dr Marta Lorimer has been quoted in Bloomberg Quint, discussing the forthcoming election in France.

"“It’s one of the perverse ways in which a more extreme candidate validates her claim that she is less extreme than she actually is,” said Marta Lorimer, an expert on the French far right at the London School of Economics. “Le Pen hasn’t really changed that much, substantively. A lot is the same. She has been both lucky and has demonstrated that she is more of a politician than Zemmour.”"

Read the full article here.

Whatever happens now, Putin has changed politics in Europe

Professor Kevin Featherstone has published an article on eKathimerini, reflecting on the impact Putin's war in Ukraine has had and will have on Europe.

He writes: "There’s an immediate cause and effect here between Russia’s invasion of Ukraine and the European Union signaling a new strategy of developing a stronger security role for itself. In Lenin’s terms, the EU has moved “decades” with its declaration at Versailles and its deliberations at the European Council last week."

Read the article here.

From pension policy to practice

Professor Nicholas Barr was an interviewee at an episode of Pioneering Pensions: interview with Stefan Lundbergh, aired 7 April 2022.

Professor Barr and Stefan Lundbergh discuss experiences and identify lessons from pension systems across the world. What does good look like when it comes to the pension choices that are offered? Do we focus too much on how we think people should act, rather than looking at how they do act?

Watch the full interview here.

Epidemic Exposure, Financial Technology, and the Digital Divide

Dr. Orkun Saka's research on how epidemics shape financial technology adoption around the globe is now forthcoming at the Journal of Money, Credit and Banking.

Dr. Saka and his co-authors (Barry Eichengreen and Cevat Aksoy) exploit a new dataset combining Gallup World Polls and Global Findex surveys for some 250,000 individuals in 140 countries and find that epidemics lead to an increase in remote-access (online/mobile) banking and substitution from bank branch-based to ATM-based activity. However, these effects are mostly determined by the pre-existing inequalities in the same society in the form of income, employment and digital infrastructure.

NBER working paper version can be freely accessed here.

Central banks must switch to a war footing

Professor Lorenzo Codogno has written a piece for the OMFIF, looking at the changes central banks must make to their policy due to the war in Ukraine.

He writes: "However, it would not be business as usual for central banks. Sanctions and disruptions to the global supply chain are here to stay. Central banks will lack clarity on the effects of these economic phenomena. The risk of a long-lasting impact on supply with a persistent adverse consequence on economic growth cannot be easily dismissed." 

Read the full article here.

Trust and Monetary Policy

 Professor Paul de Grauwe has co-authored a new publication "Trust and Monetary Policy", analysing how trust affects the transmission of negative demand and supply shocks.

He and co-author Yuemei Ji wrote: "We define trust to have two dimensions: there is trust in the central bank's inflation target and trust in the future of economic activity. We use a behavioural macroeconomic model that is characterized by the fact that individuals lack the cognitive ability to understand the underlying model and to know the distribution of the shocks that hit the economy." 

Professor de Grauwe will also be taking part in a seminar on this topic at NIESSR on 31 March.

Find out more here.

The European Institute’s first decade

To celebrate the 30th anniversary of the European Institute at LSE, Professor Nicholas Barr looks back at the set up, early years and expansion of the EI and the people involved, against a backdrop of change in Europe.

He writes: "As the 1980s turned into the 1990s, the EU was developing what would become the 1992 Maastricht Treaty (which, among other things, introduced European citizenship) and giving early consideration to whether, when and on what basis the reforming former-Communist countries of Central and Eastern Europe might become Member States. Against that backdrop, the School established the European Institute as a focus for colleagues across departments who worked on different aspects of Europe."

Read it in full here. 

Brexit Article 16: Should the UK trigger protocol? Experts have their say

Professor Kevin Featherstone was interviewed by the Express, debating the triggering of Brexit Article 16.

"Professor Featherstone believes now is not the time “to stoke the fires of protest on the streets of Northern Ireland”. The academic added that as “more time passes” the clearer it is becoming that Theresa May’s Brexit plan - which she spent more than two years negotiating - would have been the “better choice” to move forward with."

Read the full article here.

Covid-19 has so far cost the world as much as $114-trillion — and counting

Dr. Orkun Saka's research on epidemics and political trust has recently been quoted by the Daily Maverick. 

"In a report titled “The Scars of Covid”, Cevat Giray Aksoy, Barry Eichengreen and Orkun Saka warn: “Covid-19 is likely to accelerate long-term trends towards declining trust in public authorities. This scarring impact could prove particularly profound on young people in their ‘impressionable’ years.”"

Read the full article here.

Why an ambitious directive on adequate minimum wages is the right approach in a time of inflation 

Professor Paul De Grauwe has taken part in a webinar, organised by the European Trade Unions, discussing the need for an ambitious directive on adequate minimum wages in the current climate. Other participants included Esther Lynch, Deputy General Secretary at the ETUC, and Torsten Müller, Senior Researcher at the ETUI.  

Find out more here.

The Nicholas Barr Fellow in European Political Economy

As part of the European Institute's 30th anniversary celebrations, we are delighted to be honouring one of the longest-serving members of the European Institute, Professor Nicholas Barr, with our new Nicholas Barr Fellow in European Political Economy.

Find out more about the Fellowship here.

The EU is facing many difficulties, but Brexit isn’t one of them

Professor Lorenzo Codogno has written a piece in The Guardian, looking at Brexit two years on.

He writes: "Nearly 52% of UK voters supported Brexit in the 2016 referendum. Nearly 100% of citizens elsewhere in the bloc were shocked by the result, and the first concern was that Brexit could mark the unravelling of the whole European project. That did not happen: indeed, quite the opposite."

Read the full article here.

The Scars of Covid-19

OECD have published an op-ed co-authored by Visiting Fellow Dr. Orkun Saka in its Forum, summarising and discussing the implications of his research on the long-term “trust consequences” of the pandemic.

The op-ed can be read in full here.

The related research papers can be accessed here and here.

Reflections on the development of the European Institute at LSE

To celebrate the 30th anniversary of the European Institute at LSE, Professor Kevin Featherstone recounts the establishment of the European Institute, reviews its management structures and discusses its previous and ongoing cross-disciplinary research and teaching accomplishments.

He writes: "The European Institute has come a long way over its 30 years, and it deserves to celebrate its achievements. Its profile and reputation are much higher. Its intellectual coherence is reflected in its teaching and its student recruitment has been consolidated. Worthy of special mention is that its research has regularly been deemed outstanding."

Read it in full here. 

Tweeting terrorism: Vernacular conceptions of Muslims and terror in the wake of the Manchester Bombing on Twitter

Dr. Joseph Downing and Sarah Gerwins have co-authored a new article in Critical Studies on Terrorism, in which they analyse tweets posted after the 2017 Manchester bombing, exploring how terror attacks are constructed on social media.

They write: "Both vernacular security studies and critical terrorism studies (CTS) offer constructivist analyses of security couched in understandings of security speak. However, neither adequately take account of the ways in which social media presents important opportunities for greater insight into how terrorism is constructed."

Read the full article here.

Flexible Europe: Differentiated Integration, Fairness, and Democracy

Dr Marta Lorimer has co-authored a new book, Flexible Europe: Differentiated Integration, Fairness, and Democracy. Written with Richard Bellamy and Sandra Kröger, Flexible Europe provides fresh thinking on the future of the EU, exploring the alternative of a flexible EU based on differentiated rather than uniform integration.

Listen to Dr Lorimer and her co-authors discussing the book on the New Books Network podcast here.

Learn about Flexible Europe here.

Testifying to Violence Environmentally: Knowing, Sensing, Politicizing

Dr Eray Çaylı guest-edited the issue 'Testifying to Violence Environmentally: Knowing, Sensing, Politicizing' of the Journal of Visual Culture.

The issue puts a series of questions about the concepts of violence and environment and the changes in approaches to them: "What are the political possibilities and limitations of enlisting environments as authoritative witnesses to violence? What might the sensorial multiplicity associated with testifying to violence environmentally entail for both the primacy of the visual and its critique as a Eurocentrism? How do the truths produced through such testimony bear upon the various politically pragmatic ends it is expected to serve, such as verification, adjudication, resubjectivation, reparation and reconciliation?"

Read more about the issue here.

Europe must reimagine its cultural policies

In his newly published blog post on reimagining the EU's cultural policies, Gijs de Vries shares his thoughts about the founding values of the EU - respect for human dignity, freedom, democracy, equality, the rule of law and human right. 

He says: "Today these values are at risk from religious extremists and unscrupulous political entrepreneurs, from sabotage by foreign governments and from Europeans’ own occasional indifference or reluctance to uphold them." The writer also discusses how those crucial values can be protected and preserved in the future.

Read it in full here. 

If the UK manages to recover, it will not be because of Brexit, but despite Brexit

Professor Lorenzo Codogno discusses the situation of the UK when the first anniversary of Brexit is coming. In 2016, nearly 52% of British voters supported Brexit for a variety of reasons. A recent poll showed changes in the number. More than 60% of voters said Brexit went ‘badly’ or ‘worse than expected’. Furthermore, 42% of former supporters have changed their view and are worrying about the future. 

To answer the question of "What remains of the hopes linked to Brexit?", professor Codogno says: "It remains the stubbornness and determination of a nation that has overcome difficult challenges in the past and seems to have still many cards to play. But if that happens, it will not be for Brexit, but despite Brexit."

Read the full article here.

Attitude change about the legacy of war: the role of digital media and civil society

In her interview with Oslobodjenje, Dr Sanja Vico talked about her reasearch on the factors that lead to attitude change about the legacy of war. She focused on the role of digital media and society in promoting acknowledgement and the change of dominant discourse of denial of war crimes committed by members of one's own ethnicity. 

Read the full interview here.

EU faces crisis year ahead as Germany and France to outmuscle small nations

The new German Chancellor, Olaf Scholz, went to Paris on his first out-of-state visit, strengthening the relations between Germany and France. If these two countries try to lead the EU unilaterally, there could be some tension in the bloc from other member states.

Professor Iain Begg commented on this: "The weight of their power, and the fact that Italy is now aligning quite closely with what Macron wants, I think does create a new momentum that wasn’t there maybe two years ago."

Read the full article here.

Political uncertainty and Brexit will slow UK recovery in 2022

The UK's economy is facing many challenges in 2022: high energy prices, labour shortages, disruption to supply chains, climate change risks, and pandemic-related problems - waves of virus infections and inflationary pressures.

Brexit is said to be a factor that slows the recovery of the country. Professor Paul de Grauwe was quoted on Financial Times: “Recoveries are driven by optimism about the future. Brexit will impose chronic pessimism about the future of the UK economy.”

Read the full article here.