Tag Archive for: Future Finance

The monetary system in crisis

The-monetary-system-in-Crisis

Abstract

This paper provides a summary of the current challenges our monetary system is facing and offers an overview of the different ideas for reform, discussing their practical feasibility. It will also demonstrate how a simpler monetary policy tool could facilitate the implementation of many of the ideas that reformers advocate, without a complex restructuring of the banking system. The implementation of this monetary policy tool will enable central banks to regain their ability to act effectively.

Full Report

Costs of Austerity – Squandering our Productive Resources

Cost_of_austerity

Abstract

Austerity policies are not only practiced since the 2008 global financial crisis, but have been implemented for over 30 years. Many countries are living below their potential because they do not use their existing production capacities, creating idle real capital and large-scale unemployment. Methodologically, neoclassical economic theory can neither explain mass unemployment nor unused production capacities. In this study a heterodox approach has been selected to explain the under-utilisation of productive capacities in a real world market model. It indicates that additional demand frequently results in additional production rather than increased prices. Absurdly, while living below our economic potential we are living above the means of our finite raw materials and produce excessive CO2 emissions. The win-win response is to reduce our CO2 emissions and our over-consumption of finite raw materials by utilising our free productive capacities to expand renewable energies and redesign our production, as far as possible, according to the “Cradle to Cradle” principle of closed loops.1 In this study we calculate the global costs of under-using our productive resources, i.e. the economic losses caused by austerity policies, to be at least US $2.3 trillion a year. In the Eurozone the annual costs of austerity are estimated at 580 billion Euros. These amounts show the extent to which we live below our potential by not using available productive resources. A gradual closing of this production gap would neither overtax the existing production potential nor cause dangerous inflation.

Full Report

The Monetary Cost of the Non-Use of Renewable Energies (Update 2017)

The_Monetary_Cost_of_the_Non-Use_of_Renewable_Energies

Abstract

It is often claimed that renewables are still too costly and not yet competitive with conventional energy sources. But what costs are incurred when renewable energies are not used? Every day during which potential renewable energy sources are not utilised but exhaustible fossil fuels burnt instead speeds up the depletion of these non-renewable fuels. Using burnt fossil fuels for nonenergy related purposes (e.g. in the petro-chemical industry) in the future is obviously impossible. Thus, their burning – whenever they could have been replaced by renewables – is costly capital destruction. This study concludes that, estimated conservatively, the future usage loss resulting from our current oil, gas and coal consumption is between 3.2 and 3.4 trillion US Dollars per year.

English

New Alliance established in Addis Ababa

Press release – for immediate release

Stakeholders come together to boost Renewable Energy in Africa

Addis Ababa, October 10th. Their aim is to speed up electrification and fight climate change at the same time: Representatives from various African countries today in Addis Ababa established the African Renewable Energy Alliance (AREA). In this Alliance, utilities, industry, policy-makers and the civil society will work together to boost the take-up of sustainable electrification and thermal power. Abel Didier Tella, Secretary General of union of African utilities UPDEA, which represents 54 private and public electricity producers and distributors in 43 African countries: “True exchange of information on new technologies as well as workable funding mechanisms for Renewable Energy is exactly what is needed. By creating this Alliance we expect to create an on-going exchange and to speed up Renewable Energy production in Africa”.
Read more