{"id":16913,"date":"2024-02-29T18:01:55","date_gmt":"2024-02-29T17:01:55","guid":{"rendered":"https:\/\/www.progressives-zentrum.org\/en\/?p=16913"},"modified":"2025-03-06T13:46:07","modified_gmt":"2025-03-06T12:46:07","slug":"towards-a-progressive-toolbox-to-deal-with-inflation-progressive-economics-network-expert-meeting-in-brussels","status":"publish","type":"post","link":"https:\/\/www.progressives-zentrum.org\/en\/towards-a-progressive-toolbox-to-deal-with-inflation-progressive-economics-network-expert-meeting-in-brussels\/","title":{"rendered":"Towards a progressive toolbox to deal with inflation"},"content":{"rendered":"\n

On 30 January 2024, the Progressive Economics Network (PEN) held an Expert Meeting in the FEPS Headquarters in Brussels as well as online, where academics, policymakers and key advisors were gathered to discuss the experience of new ways to managing inflation and how they should be refined to build up a progressive toolbox approach to dealing with inflation. PEN is a joint initiative by the Foundation for European Progressive Studies (FEPS), Friedrich-Ebert-Stiftung and Das Progressive Zentrum.<\/strong><\/p>\n\n\n\n

Over the last two years, rising gas and fuel prices and ensuing economic and social disruptions have led to a strong increase in \u2018market management\u2019 policies across Europe. These were policies to ease the pain of the cost of living crisis on households and businesses, including through directly influencing market prices and profits.<\/p>\n\n\n\n

Spain, Portugal and France were some of the first to cap their energy prices, and later, they were followed by Germany, the UK and other countries. Businesses were supported through subsidies, whilst taxes on extra profits led to insignificant revenues. Market designs were overhauled, and the EU is inching closer to EU-wide electricity market reform to stop prices fluctuating too much.<\/p>\n\n\n\n

Going forward, such policies are likely to continue being debated: key issues include whether energy prices should be kept lower and linked to decarbonisation to support jobs and industry or whether EU governments need wholly different institutions to fight price pressures along value chains as they build up rather than after the fact.  <\/p>\n\n\n\n

This PEN meeting gathered academics, policymakers, and key advisors to discuss the experience of these new approaches to managing inflation and how they should be refined to build up a progressive toolbox approach to dealing with inflation. The discussion included presentations of scientific policy-relevant papers and contributions with examples of policies from different European Member States.<\/p>\n\n\n\n

The meeting\u2019s highlight was a keynote speech and presentation by Professor Isabella Weber<\/strong>, Associate Professor of Economics, University of Massachusetts Amherst<\/em> & Associate in Research, Fairbank Center<\/em>, Harvard University <\/em>in which she spoke about latent systematically significant prices in different sectors and why some prices matter much more than others. Isabella Weber presented a set of recommendations aimed at putting together a toolbox for economic preparedness, looking at possible actions to counter economic shocks.<\/p>\n\n\n\n

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The subsequent discussion was structured along the following key questions: <\/strong><\/p>\n\n\n\n

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  1. How can we categorise different types of market interventions to deal with inflation implemented over the last two years? What were their costs, benefits, and impacts?  <\/li>\n\n\n\n
  2. What are the main features of the policies implemented in European member states: their design, results, reasons for success and lessons for the future?<\/li>\n\n\n\n
  3. How can we prepare for future inflation shocks? Crisis preparedness, a ready-to-use toolbox, windfall taxes or antitrust efforts and other reforms to competition policy.  <\/li>\n\n\n\n
  4. What reforms need to be carried out to make the EU economy more resilient to inflation shocks (energy and food markets reform, regulation of commodity trade etc.)?  <\/li>\n\n\n\n
  5. What is the link between inflation-resilience and green transition? How can the policy toolbox be used to advance both goals?  <\/li>\n\n\n\n
  6. What is the role of the EU in this? What instruments and institutions can be used & which need to be developed? <\/li>\n<\/ol>\n<\/div><\/div>\n\n\n\n

    After welcome remarks by Christiane Kesper, Director, Friedrich-Ebert-Stiftung EU Office, the first session started with an assessment of already implemented measures to fight inflation in Europe from the years 2021 to 2023. For this, Isabella Weber presented her keynote speech about \u201cStabilization policies for systemically significant sectors\u201d<\/strong>. Experts like Jeromin Zettelmeyer<\/strong>, Director, Bruegel, Jon\u00e1s Fern\u00e1ndez<\/strong>, S&D MEP, Member of the ECON Committee & Subcommittee on Tax Matters, J\u00e9r\u00f4me Creel<\/strong>, Director, Research Department, Sciences Po, OFCE & Associate Professor of Economics, ESCP and Jos\u00e9 Domingo Rosell\u00f3 G\u00f3mez-Lobo<\/strong>, Head of Unit of Macroeconomic and Labour Policies, Office of Economic Affairs and G20, Cabinet Office of the Presidency of the Government of Spain, shared experiences about dealing with inflation on country as well as EU-level. <\/p>\n\n\n\n

    In a second session, an outlook into the future with ways to prepare for it was made. The centre of the debate focused on a toolbox to help deal with inflation and also prevent approaching crisis. To set the stage, two presentations were held by Anna Kolesnichenko, Economic Policy Analyst, FEPS and Carsten Jung<\/strong>, Senior Economist at IPPR as well as our Senior Economic Advisor at Das Progressive Zentrum. Following their presentations, Francisco Costa-Cabral<\/strong>, Fellow, Tilburg Law and Economics Centre, and Max Krah\u00e9<\/strong>, Co-founder and Director, Dezernat Zukunft, provided their input, which lead to a last open exchange among the participants. The closing remarks were given by L\u00e1szl\u00f3 Andor<\/strong>, Secretary-General, FEPS.<\/p>\n\n\n\n

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    Co-Hosts of the Progressive Economics Network<\/h2>\n\n\n\n
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    Authors<\/h2>\n\n\n
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    Florian Ranft<\/a><\/h4>
    Member of the Management Board and Head of Green New Deal<\/div>
    <\/use> <\/svg><\/a> <\/use> <\/svg><\/a> <\/use> <\/svg><\/a> <\/div><\/div>
    Florian Ranft is a member of the Management Board and is head of Green New Deal & Progressive Governance at Das Progressive Zentrum.<\/div><\/div>
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    Carsten Jung<\/a><\/h4>
    Senior Economic Advisor<\/div>
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    Carsten was a Senior economic advisor at Das Progressive Zentrum. He is also senior economist at the\u00a0UK's Institute for\u00a0Public Policy Research (IPPR), where he leads the work on macroeconomics and structural economic reform.<\/div><\/div>
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    Sandra Rath<\/a><\/h4>
    Project Manager<\/div>
    <\/use> <\/svg><\/a> <\/use> <\/svg><\/a> <\/div><\/div>
    As Project Manager in our Green New Deal Team, Sandra works on our international projects. Her interests span from US domestic and foreign politics and the transatlantic relationship to the role of the international order in the socio-economic transformation, especially from the feminist perspective.<\/div><\/div>\n\n\n\n

    Previous Progressive Economics Network Meetings<\/h2>\n\n\n

    \"Conference<\/a><\/div>

    Trade, Trust and Transition \u2013 Transatlantic Perspectives in Times of Geopolitical Disruption<\/a><\/h4>
    Posted on<\/span>
    In an era marked by global insecurity, geopolitical friction, and economic transformation, the Progressive Economics Network (PEN) reconvened in Washington, D.C.<\/div>
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    Preparedness, Investment and Industrial Policy in Times of Political Upheaval<\/a><\/h4>
    Posted on<\/span>
    Progressive Economics Network Meeting in Berlin on inflation, industrial policy, and investments<\/div>
    Florian Ranft<\/a>, Rachel Stieb<\/a><\/div>
    Event Report<\/a>, News<\/a><\/div><\/div><\/div>
    \"\"<\/a><\/div>

    Towards a progressive toolbox to deal with inflation<\/a><\/h4>
    Posted on<\/span>
    How can we categorise different types of market interventions to deal with inflation implemented over the last two years? What were their costs, benefits, and impacts? How can we prepare for future inflation shocks? <\/div>
    Florian Ranft<\/a>, Carsten Jung<\/a>, Sandra Rath<\/a><\/div>
    Event Report<\/a>, News<\/a><\/div><\/div><\/div> <\/div>
    \"\"<\/a><\/div>

    Progressive Economics Network Meetings During IMF Spring Meetings in Washington, D.C.<\/a><\/h4>
    Posted on<\/span>
    How can progressive industrial strategies deliver cross-border synergies? How can social justice be hard-wired into their design? How can industrial policy be designed to align with countries\u2019 broader economic strategies?<\/div>
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    News<\/a><\/div><\/div><\/div>
    \"\"<\/a><\/div>

    Progressive Economics Network Gathers in Lead Up to G20 Meeting for the Second Time<\/a><\/h4>
    Posted on<\/span>
    How can policy-makers prepare for the energy crunch in the winter of next year?<\/div>
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    \"Managing<\/a><\/div>

    Progressive Economics Network kicks off with pre-briefing for the IMF Annual Meetings<\/a><\/h4>
    Posted on<\/span>
    Which macroeconomic strategies can guide us out of the ongoing crises?<\/div>
    Carsten Jung<\/a>, Florian Ranft<\/a><\/div>
    Event Report<\/a>, News<\/a><\/div><\/div><\/div> <\/div><\/p>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n
    <\/span>
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    We develop and debate progressive ideas and bring together leading actors who turn thoughts into action. Our think tank\u2019s goal: making the just transformation a reality. \u25b8 Learn more<\/a><\/p>\n<\/div><\/div>\n\n\n\n

    <\/p>\n","protected":false},"excerpt":{"rendered":"

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