Role of the State
It is a fundamental market failure that often justifies state intervention (e.g. a factory that pollutes the air and harms nearby residents without internalizing those costs)
What is an externality?
It is an economic principle assuming zero trade costs and perfect competition, when an identical good is traded at the same price across all buyers and sellers in multiple markets.
What is the Law of One Price?
In international trade theory, this concept is determined by differences in opportunity costs rather than absolute productivity.
What is comparative advantage?
It is a nickname for a yield discount on green sovereign bonds.
What is a "greenium"?
This is a relative of Professor Panizza who broke her leg while nine months pregnant.
Who is Professor Panizza’s sister?
It is a breakdown of confidence in the banking system which can be illustrated by the queues outside Northern Rock branches in the United Kingdom in 2007.
What is a bank run?
It is a previously passed tariff, enacted in 1930, and historically the highest with which the Trump tariffs have been compared as starting a global tariff war.
What is the Smoot-Hawley tariff of 1930?
According to this paradox, the United States, a capital-abundant country was found to export labor-intensive goods, contradicting the predictions of the Heckscher-Ohlin Theory.
What is the Leontief Paradox?
It is a form of transportation which is causing 20x more GHG emissions than sea transportation per ton km.
What is road transportation?
This is the Indian city that Professor Panizza visited to attend a marriage ceremony.
What is Goa?
During the 2008 financial crisis, central banks performed this classic function by providing emergency liquidity to solvent but illiquid banks to prevent systemic collapse.
What is the lender of last resort?
According to Rodrik and Subramanian, it is a constraint that developing economies are more likely to face, making increased foreign savings ineffective for boosting long-term investment.
What is investment constraint?
It is a post-1944 monetary system with balanced fixed exchange rates, national monetary autonomy, and international capital controls and later formed what economists called a “golden triangle".
What is the Bretton Woods system?
It is the conference which will be hosted by Türkiye in Antalya next year.
What is COP31?
This is the number representing the H-index, a measure of research productivity and citation impact, for Professor Ugo Panizza.
What is 69?
The U.S. government’s decision to rescue AIG in September 2008 reflected fears that the failure of institutions of this type could trigger widespread financial contagion.
What are “too big to fail” institutions?
It is a highly fragmented asset market, built on voluntary trading, identified in the readings as a key potential revenue source for developing countries, but currently lacking the mandatory participation needed to achieve scale and high prices.
What is the Voluntary Carbon Market?
It is a theory according to which Switzerland may trade manufactured goods with France not because of comparative advantage, but due to increasing returns to scale and network effects.
What is New Trade Theory?
Named after a British economist, this tax or an equivalent cap-and-trade system is considered the most economically efficient policy to force actors to internalize the external cost of carbon emissions.
What is a Pigouvian Tax?
This is the author of the quote on Professor Panizza's famously pixelated LinkedIn background, which states, "If we knew what we were doing, it wouldn't be called research."
Who is Albert Einstein
A type of regulatory framework that has been strengthened in the aftermath of the global financial crisis by the Basel III reforms by requiring higher capital and liquidity buffers to curb moral hazard.
What is prudential regulation?
A federal act invoked by the Trump administration, which has been historically used for economic sanctions, to impose tariffs quickly, bypassing standard legislative trade procedures, despite subsequent rulings that this use was illegal.
What is the International Emergency Economic Powers Act (IEEPA)?
It is a strategy of policies, including interest rate caps and capital controls, which was widely used in advanced economies during the decades following World War II, and helped governments liquidate large public debt burdens.
What is financial repression?
This Nobel laureate identified core design principles showing how democratic, self-governing institutions can sustainably manage public goods and common-pool resources.
Who is Elinor Ostrom?
This is the one-word term, frequently used in economic and political discourse, that Professor Panizza publicly stated on Twitter he "totally hates."
What is Neoliberal?