Programs

CEP formulates and promotes economic policies to strengthen individual opportunity, social cohesion and environmental stability. We pursue these objectives through three programs on fiscal, monetary and trade policy. Across these pillars, we engage on a broad range of priorities, including economic development, financial stability, sustainable energy, inclusivity, and climate action.

Fiscal Policy

Our fiscal program includes a key workstream on tax expenditures: exemptions, deductions, reduced rates and other types of preferential tax treatment. Tax expenditures represent a critical but often under-scrutinized component of fiscal policy. On average, they result in government revenue forgone of 4% of GDP. We are engaged on putting tax expenditures under just as much scrutiny as direct spending and advancing tax expenditure reform in support of sustainability objectives. We also work on strengthening fiscal policies in support of affordable, secure and clean energy. A key component of our activities in this field is our engagement as an institutional partner of the Coalition of Finance Ministers for Climate Action.

Monetary Policy

CEP’s monetary program is focused on strengthening the role of central banks and financial supervisors for sustainable prosperity. In that context, we work on integrating climate and environmental considerations into central bank operations (e.g., their asset purchases and refinancing operations), and financial supervision (e.g., capital requirements on banks). We are also active on the distributional impacts of monetary policy and financial supervision and have started working on policy considerations for central bank digital currencies and stablecoins.

Trade Policy

In our program on trade policy we are focused on digital trade and related issues on AI adoption and regulation. A key aim guiding our work is to align digital trade and related trade rules in support of the development objectives of developing countries. We also seek to expand our engagement on AI regulation.

Cross-Program

In addition, as a cross-program initiative, we are developing an AI-based platform for economic policymaking enabling policymakers, researchers, and analysts to evaluate policy alternatives against a range of indicators – including employment, affordability, income distribution, and environmental sustainability. We aim to launch a first module focused on tax expenditures, with the intention of adding further economic policy modules moving forward.