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Climate Change Adds to Risk for Banks, but EU Lending Proposals Will Do More Harm Than Good

and | 17 January 2018
Blog, Monetary | Tags: Climate Change, Financial Stability, Macroprudential Regulation
Climate change is a relevant risk factor for the banking sector, but the European Commission's plan to lower capital requirements for greener investments is irresponsible in encouraging banks to forego proper risk management. ... continue reading

Shedding Light on Hidden Government Spending: Tax Expenditures

and | 20 December 2017
Blog, External, Fiscal | Tags: Tax Expenditures
Tax expenditures (TEs) are used by governments around the world to promote public policy objectives. Examples include tax deductions on mortgage interest to encourage home ownership and preferential tax treatment of pension savings. ... continue reading

Fighting Poverty with Taxes

| 21 November 2017
Blog, Fiscal | Tags: Inequality, Poverty, Tax Expenditures
One way the U.S. federal income tax system provides low-income families with financial support is through refundable tax credits. Families can claim refundable tax credits even if they do not owe any tax liability, which allows families with the lowest incomes to receive benefits. ... continue reading

In France, Evaluating Tax Expenditure Effectiveness Remains a Challenge

| 16 November 2017
Blog, Fiscal | Tags: Tax Expenditures
The inability of the French government to ensure that a particular tax benefit reaches its primary goal – i.e. the assessment of public expenditure effectiveness – lies at the heart of the expansion of public subsidies. ... continue reading

Is It Time To Take Away The Carbon Punch Bowl?

| 5 September 2017
Blog, Monetary | Tags: Climate Change, Financial Stability, Macroprudential Regulation
Climate change poses serious financial risks. Perhaps the biggest systemic risk is a disorderly transition to a low carbon economy. As noted in the Bank of England’s ‘response to Climate Change’, current forecasts suggest that to keep global average temperatures below 2 degrees, around two-thirds of ... continue reading