Documents IIPP 9 results

"The climate and biodiversity emergencies require structural economic shifts that will necessitate strategic coordination between macroeconomic policy authorities. The COVID-19 episode saw the implementation of monetary-fiscal policy coordination not seen since the 1970s to avert catastrophic damage to economies caused by pandemic-induced lockdowns. Recent developments suggest these were best understood as emergency short-term responses rather than marking a shift in the consensus that insists on a separation between monetary and fiscal policy spheres that might support a more coordinated policy approach to addressing environmental breakdown. We review the most prominent examples of coordination in high income and emerging market economies in the 2020-2021 period, focussing on the creation of fiscal space and targeted provision of liquidity to strategic sectors of the economy. We consider the lessons and opportunities these policy innovations raise for the development of a precautionary macroeconomic policy approach which seeks to reduce the threat of ecological tipping points, prevent catastrophic losses, and support the Net-Zero transition."

"This policy brief summarises considerations on mission-oriented innovations in cities to address the critical urban challenges of the 21st century, from housing affordability to resilient mobility systems to climate adaptation, exploring how local governments must develop the dynamic capabilities needed to shape their economic development towards societal goals and overcome the institutional shortcomings that have traditionally stymied strategic urban planning."

"Just transitions to a greener economy need to be governed and regulated, and there is a variety of multilateral and international institutions with responsibilities for finance, labour and technology development. Based on a analysis of some of the key actors in this space — such as the IMF, ILO and IRENA — we identify a series of ‘gaps' in how just transitions are defined, promoted and financed. This creates an increasingly fragmented landcape of international policy advocacy, making it more difficult for national governments to navigate the complexity of just transitions. This also makes future-oriented policies that aim at shared prosperity and sustainability more challenging, while largely reinforcing a dominant neo liberal and financialised economic growth model. For global institutions to play a more active and inclusive role in supporting just transitions in the context of uneven development and stark global inequalities, they need to address questions of justice head on, and institutions with explicit social and environmental justice goals need to be prioritised"

"To effectively address the grand challenges of our time, we cannot simply tinker around the edges by fixing market failures. We must actively shape markets to deliver on the objective of generating more sustainable and inclusive growth. This paper argues that an objective-oriented economy requires a market-shaping approach; one that accompanies the concept of the public good with the common good framing that is needed to design the interface for this collaboration. This is about structuring the conditions and governance mechanisms that shape the capabilities, tools, institutions and partnerships needed to take concrete action. Building collective intelligence into these dimensions ex-ante is essential for maximising public value for all actors involved. This paper sets out how a market-shaping and common good framing can be conceptualised and brought together. Importantly, missions can be used to orient and coordinate policies, institutions, innovation and investments around clear, ambitious and measurable goals. Further, this paper addresses the implications for key global challenges, from climate change to pandemics."