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News and Press

News Archive 2008

Sharewatch

REFILE-Spain risks homegrown 'subprime' crisis

"The Spanish central bank didn't allow our banks to take American crap because they had their own crap...they were extremely exposed to the Spanish housing market," said economist Luis Garicano of the London School of Economics.

This article appeared in Sharewatch on the 23rd December 2008.
Link to article.

Related Links
Luis Garicano webpage
Productivity and Innovation webpage

News Posted: 23/12/2008      [Back to the Top]

FT - blog Economists Forum

Normality is just a few policy steps away

Nick Bloom, assistant professor of economics at Stanford University, provides the best available evidence of how an economy is likely to react to a temporary bout of volatility.

This article appeared in the FT - Economists Blog on the 18th December 2008.
Link to article.

Related Publications
‘The Impact of Uncertainty Shocks: Firm Level Estimation and a 9/11 Simulation’ by Nick Bloom, Centre for Economic Performance Discussion Paper No.718, March 2006
‘Will the Credit Crunch Lead to Recession?’ by Nick Bloom. Article in CentrePiece, Volume 13, Issue 1 Spring 2008
‘What Drives Good Management Around the World?’ by Nick Bloom, Christos Genakos, Raffaella Sadun and John Van Reenen. Article in CentrePiece, Volume 12, Issue 2 Autumn 2007
Joint McKinsey/CEP Report,‘Management Practice and Productivity: Why They Matter’ by Nick Bloom, Stephen Dorgan, John Dowdy and John Van Reenen, July 2007.

Related Links
Nick Bloom webpage
Productivity and Innovation Programme webpage


News Posted: 18/12/2008      [Back to the Top]

The Economist

Link exchange

YESTERDAY we linked to bad news for those hoping to preserve the environment in the face of a withering economy. Luckily, not everyone believes that the two crises are in opposition. Ralf Martin argues that lessons from the economic crisis can illuminate the world's handling of the environment:

This article appeared in the Economist online on December 10, 2008
Link to article

Related Publications
‘CEP carbon offsetting survey’ on CEP blog page. Details
‘Modern Management: Good for the Environment or Just Hot Air?’, by Nick Bloom, Christos Genakos, Ralf Martin and Raffaella Sadun, Centre for Economic Performance Discussion Paper No 891, October 2008
Technologies to Tackle Global Warming by Ralf Martin, article in CentrePiece, Volume 11 Issue 3 Winter 2006
Climate Change: Economic Sense and Non-sense of Carbon Mitigation Policies, Centre for Economic Performance Policy Analysis published in February 2006

Related links
Ralf Martin webpage
Productivity and Innovation Programme webpage

News Posted: 10/12/2008      [Back to the Top]

CRA European Competition Practice

Brussels conference hosts a debate on the impact of the credit crunch on competition policy

In a conference in Brussels on 3rd December 2008, Director of the Centre for Economic Performance, Professor John Van Reenen debated the impact of the credit crunch on competition policy with John Fingleton, CEO of the UK Office of Fair Trading, Philip Lowe, Director General of DG-COMP at the European Commission and Professor Xavier Vives. He raised the issue that the relaxation of rules on state aid and mergers could be storing up problems for the longer-term as once subsidies are given out, they become increasingly hard to take back.

His presentation can be found here.

Related links
John Van Reenen webpage
Productivity and Innovation Programme webpage

News Posted: 03/12/2008      [Back to the Top]

Independent

Pensioners lose £45bn in property slump

Credited quote from LSE professor Dr Tim Leunig.

This article appeared in the Independent on the 1st December 2008.
[No link avaliable]

Related Links
Tim Leuing webpage
Globalisation Programme webpage

News Posted: 01/12/2008      [Back to the Top]

FinFacts

Global Financial Crisis: Warnings of danger from 2001 and a Fed all bark but no bite - with monumental consequences

The 82-year-old monarch had the main aspects of the current global financial crisis explained to her during the inauguration of a new building at the London School of Economics (LSE). The origins and effects of the crisis were explained to her by Professor Luis Garicano, director of research at the LSE's management department, the Press Association reported. Prof Garicano said afterwards: "The Queen asked me: 'If these things were so large, how come everyone missed them? Why did nobody notice it'?"

This article appeared in FinFacts on the 25th November 2008
Link to article.

Related Links
Professor Luis Garicano is an Associate of the Productivity and Innovation Programme at the Centre for Economic Performance.
Luis Garicano webpage
Productivity and Innovation Programme webpage

News Posted: 25/11/2008      [Back to the Top]

Wall Street Journal Blogs, NY

Guest Post: Inflation Should Be Just Around the Corner

Peter Boone is chairman of Effective Intervention, a UK-based charity, and a research associate at the Centre for Economic Performance, London School of Economics.

This article appeared in the Wall Street Journal on the 24th of November 2008.
Link to article.

Related Links
Peter Boone webpage
Globalisation Programme webpage


News Posted: 24/11/2008      [Back to the Top]

National Post - Canada

Great Depression of Small 'D'?

The Great Depression obliterated GDP, but Nicholas Bloom, assistant professor of economics at Stanford University, wrote this week that 2009 will be tough but still result in an overall shrinkage in world GDP of 3%.

This article appeared in the National Post Canada on the 21st November 2008.
Link to article.

Related Publications
"The Impact of Uncertainty Shocks: Firm Level Estimation and a 9/11 Simulation" by Nick Bloom, Centre for Economic Performance Discussion Paper No.718a
"Will the Credit Crunch Lead to Recession?" by Nick Bloom. Article in CentrePiece, Volume 13, Issue 1 Spring 2008
"What Drives Good Management Around the World?" by Nick Bloom, Christos Genakos, Raffaella Sadun and John Van Reenen. Article in CentrePiece, Volume 12, Issue 2 Autumn 2007
Joint McKinsey/CEP Report, ‘Management Practice and Productivity: Why They Matter’ by Nick Bloom, Stephen Dorgan, John Dowdy and John Van Reenen, July 2007.


Related Links
Nick Bloom webpage
Productivity and Innovation Programme webpage


News Posted: 21/11/2008      [Back to the Top]

Times Higher Education

The week in higher education

He was mocked in the Daily Mail for "stammering" when asked by the Queen, on a royal visit, to explain why no one had foreseen the credit crunch. But Luis Garicano , director of research at the department of management at the London School of Economics, has hit back: "I had no intention of chatting about corgis." In The Guardian on 18 November, he wrote that he had prepared a detailed explanation of the meltdown for the monarch, scotching reports that he had been startled by her question. He added: "The Queen posed a serious question. The answer defines our future."

This article appeared in Times Higher Education on the 20th November 2008.
Link to article.

Related Links
Professor Luis Garicanois an Associate of the Productivity and Innovation Programme at the Centre for Economic Performance .
Luis Garicano webpage
Productivity and Innovation Programme webpage


News Posted: 20/11/2008      [Back to the Top]

Islington Gazette

Job losses 'to hit bars and eateries'

Professor Christopher Pissarides , of the London School of Economics, agreed the outlook for bar and restaurant workers in Islington was grim. He said: "I would expect bars and restaurants to be hit because they are small companies that cannot afford to keep workers on if there is a short-term fall in demand."

This article appeared in the Islington Gazette on the 19th November 2008.
Link to article

Related links
Christopher Pissarides webpage
Macro Programme webpage


News Posted: 19/11/2008      [Back to the Top]

The Guardian

Response I did not stammer when the Queen asked me about the meltdown

Professor Luis Garicano, director of research at the department of management, London School of Economics, comments on the Queen discussing the economy with him.

This article appeared in the The Guardian on the 18th of November 2008. Link to article.

Related Links
Professor Luis Garicano is an Associate of the Productivity and Innovation Programme at the Centre for Economic Performance.
Luis Garicano webpage
Productivity and Innovation Programme webpage

News Posted: 18/11/2008      [Back to the Top]

Daily Express

Recession threat to families

In their study The Changing Pattern of Earnings: Employees, Migrants And Low-Paid Families, researchers analysed the earnings of a random sample of 1% of the British population over 30 years. They found the gap between rich and poor was finally shrinking after two decades of rising inequality. But this could be threatened by recession if unemployment hits the most disadvantaged in society, researchers said. Co-author Abigail McKnight, of the Centre for Analysis of Social Exclusion at the London School of Economics (LSE) said the experience of past recessions would suggest the current financial crisis could hit wage mobility.

This article appeared in the Daily Express on the 29th October 2008.
Link to article.

Link to report from the Joseph Rowntree Foundation, The Changing Pattern of Earnings: Employees, Migrants and Low-Paid Families by Richard Dickens and Abigail McKnight.

Related Links
Richard Dickens webpage
Labour Markets Programme webpage

News Posted: 29/10/2008      [Back to the Top]

Debt Management Today

Recession 'might depress wages'

The coming recession could make it much harder for low-income families to lift themselves out of poverty, a report suggests. Academics at the London School of Economics said that the gap between rich and poor was beginning to shrink after widening for the past 20 or so years.

This article appeared in Debt Management Today on the 29th October 2008.
Link to article.

Related Publications
Three background papers by Richard Dickens and Abigail McKnight, are published by the Centre for Economic Performance and the Centre for Analysis of Social Exclusion
Link to papers

Link to the report from the Joseph Rowntree Foundation, ‘The Changing Pattern of Earnings: Employees, Migrants and Low-Paid Families’ by Richard Dickens and Abigail McKnight.

Related Links
Richard Dickens webpage
Labour Markets Programme webpage


News Posted: 29/10/2008      [Back to the Top]

BBC World Service

Business Daily

Linda Yueh was interviewed for the programme on reasons to be cheerful during this financial crisis.

This interview was broadcast on BBC World Service on the 29th October 2008.
Link to article.

Related Links
Linda Yueh webpage
Globalisation Programme website


News Posted: 29/10/2008      [Back to the Top]

Channel 4

Recession threat to families

Recession could stop more families from working their way out of poverty, researchers have warned. But co-author Abigail McKnight, of the Centre for Analysis of Social Exclusion at the London School of Economics (LSE) said the experience of past recessions would suggest the current financial crisis could hit wage mobility. "It is not necessarily that recession will lead to a fall, but we definitely are in danger of one," she said.

This interview was broadcast on Channel 4 News on the 29th October 2008.
Link to article.

Related Publications
Three background papers by Richard Dickens and Abigail McKnight, are published by the Centre for Economic Performance and the Centre for Analysis of Social Exclusion at the London School of Economics. Link to papers
Link to report from the Joseph Rowntree Foundation ‘The Changing Pattern of Earnings: Employees, Migrants and Low-Paid Families’ by Richard Dickens and Abigail McKnight.

Related Links
Richard Dickens webpage
Labour Markets Programme webpage

News Posted: 29/10/2008      [Back to the Top]

The Mirror

Recession threat to families

Recession could stop more families from working their way out of poverty, researchers have warned. Co-author Abigail McKnight, of the Centre for Analysis of Social Exclusion at the London School of Economics (LSE) said the experience of past recessions would suggest the current financial crisis could hit wage mobility.

This article appeared in the Mirror on 29th October 2008.
Link to article.

Related Publications
Three background papers by Richard Dickens and Abigail McKnight, are published by the Centre for Economic Performance and the Centre for Analysis of Social Exclusion.
Link to these papers

Link to the report by the Joseph Rowntree Foundation: ‘The Changing Pattern of Earnings: Employees, Migrants and Low-Paid Families’ by Richard Dickens and Abigail McKnight

Related Links
Richard Dickens webpage
Labour Markets Programme webpage

Further press cuttings:
Braintree, Witham & Dunmow Times
The Echo


News Posted: 29/10/2008      [Back to the Top]

The Guardian

The financial cloud's silver lining

Comment written by Linda Yueh on how if a new system of international economic law emerges as a result of the banking crisis, it could benefit all nations.

This article appeared in the Guardian on 23rd October 2008.
Link to article.

Related Links
Linda Yueh webpage
Globalisation Programme webpage

News Posted: 23/10/2008      [Back to the Top]

US News and World Report

The economy faces a makeover

Economist Nick Bloom thinks both Europe and the United States will sink into a severe recession next year, with gross domestic product contracting by 3 percent and unemployment rising by a total of about 3 million.

This article appeared in the US News and World Report on the 20th October 2008
Link to article.

Related Publications
"The Impact of Uncertainty Shocks: Firm Level Esitmation and a 9/11 Simulation" by Nick Bloom, Centre for Economic Performance Discussion Paper No.718
"Will the Credit Crunch Lead to Recession?"by Nick Bloom. Article in CentrePiece, Volume 13, Issue 1 Spring 2008
"What Drives Good Management Around the World?" by Nick Bloom, Christos Genakos, Raffaella Sadun and John Van Reenen. Article in CentrePiece, Volume 12, Issue 2 Autumn 2007
Joint McKinsey/CEP Report, Management Practice and Productivity: Why They Matter, by Nick Bloom, Stephen Dorgan, John Dowdy and John Van Reenen, July 2007.

Related Links
Nick Bloom webpage
Productivity and Innovation Programme webpage

News Posted: 20/10/2008      [Back to the Top]

BBC News

Financial Crisis: World Round Up

BBC News is running a series of commentaries this week by economists on the challenges facing the global financial system. Today, Linda Yueh considers the implications for China.

This article appeared on the BBC News website on 20th October 2008.

Related Links
Linda Yueh webpage
Globalisation Programme webpage

News Posted: 20/10/2008      [Back to the Top]

Washington Post

Russian elite look to Kremlin for aid as wealth evaporates

Analysts said the financial crisis could strain the unspoken pact between Putin and the tycoons, who have been allowed to prosper as long as they do not challenge his rule. "They're going to be fighting to get money from the Kremlin, and behind the scenes, people inside the Kremlin will be fighting to get control of assets," said Peter Boone, an associate at the London School of Economics who studied the Russian economy for investment banks. "That's when the politics get tough."

This article appeared in the Washington Post on October 17, 2008
Link to article

Related Links
Peter Boone webpage
Globalisation Programme webpage

News Posted: 17/10/2008      [Back to the Top]

Washington Post

How to manage the banks

The Treasury plans to invest up to $250 billion in individual banks and has already allotted half that amount to nine leading banks. For now, the key questions are: Will the plan work? And what consequences will it have for our financial system and our economy? Several issues bear examination.
Article co-written by Peter Boone chairman of the charity Effective Intervention at the London School of Economics' Centre for Economic Performance.

This article appeared in the Washington Post on October 15, 2008
Link to article

Related Links
Peter Boone webpage
Globalisation Programme webpage

News Posted: 15/10/2008      [Back to the Top]

United Television (UTV) News - India

News

Linda Yueh was interviewed on the U.S. financial crisis and presidential elections.

This interview was given to United Television (UTV) News - India on October 13, 2008
[No link available.]

Related Links
Linda Yueh webpage
Globalisation Programme webpage

Also appeared on
India Business Day

News Posted: 13/10/2008      [Back to the Top]

Sky News

'Sunrise with Eamonn Holmes'

Linda Yueh interviewed on the financial crisis.

The interview was given to Sky News on October 13, 2008
[No link available.]

Related Links
Linda Yueh webpage
Globalisation Programme webpage

News Posted: 13/10/2008      [Back to the Top]

Reuters News - USA

Kremlin holds key as crisis threatens oligarchs

"There is going to be an enormous political battle over who is going to be bailed out by the government's reserves," said Peter Boone, an associate at the Centre for Economic Performance at the London School of Economics and Political Science.

This article appeared in Reuters News on October 13, 2008
Link to article

Related Links
Peter Boone webpage
Globalisation Programme webpage

Also in
Sharewatch
Kremlin holds key as crisis threatens oligarchs
Easybourse
La crise met le Kremlin en position de force face aux oligarques
"Une énorme bataille politique va se jouer pour déterminer qui sera renfloué au moyen des réserves gouvernementales", déclare Peter Boone, de la London School of Economics and Political Science.

News Posted: 13/10/2008      [Back to the Top]

Sunday Times

Time is running out for a rescue

For a start, according to the Stanford University economist Nick Bloom, the recent volatility of the stock market is on a par with the 1929 crash and subsequent episodes in that period when the Depression took hold. Bloom, who spends some of his time at the London School of Economics, is one of a number of economists who think it is not the level of the stock market that counts but the extent to which it fluctuates.

This article appeared in the Sunday Times on October 12, 2008
Link to article

Related Publications
'Will the Credit Crunch Lead to Recession?' By Nick Bloom in CentrePiece Vol13 Issue 1 Spring 2008
Further reading: Nick Bloom (2007), 'The Impact of Uncertainty Shocks', Centre for Economic Performance Discussion Paper No. 718, March 2006

Related Links
Nick Bloom webpage
Productivity and Innovation Programme webpage

News Posted: 12/10/2008      [Back to the Top]

Guardian

Don't worry about inflation

Comment by Tom Cunningham (CEP Macro Programme) on how we should be worrying about deflation, not inflation.

This article appeared in the Guardian on October 12, 2008
Link to article

Related Links
Tom Cunningham webpage
Macro Programme webpage

News Posted: 12/10/2008      [Back to the Top]

Silicon.com

US firms get more out of IT than UK rivals

Three pieces of government-backed research have confirmed that effective use of IT can give companies a "significant" productivity boost. The first paper, 'It ain't what you do it's the way that you do IT' from the Centre for Economic Performance at the London School of Economics, found that US multi-national enterprises in the UK are eight per cent more productive than their UK counterparts. The researchers said more than 80 per cent of this productivity advantage can be explained by better use of IT.

This article appeared in Silicon.com on October 10, 2008
Link to article

Related Publications
It Ain't What You Do It's the Way That You Do I.T. by Nick Bloom, Raffaella Sadun and John Van Reenen in CentrePiece Volume 10, Issue 3, Winter 2005/6
It Ain't What You Do It's the Way That You Do I.T. - Testing Explanations of Productivity Growth Using US Affiliates by Nick Bloom, Raffaella Sadun and John Van Reenen, Office for National Statistics
'Americans do I.T. Better: US Multinationals and the Productivity Miracle’ by Nick Bloom, Raffaella Sadun and John Van Reenen, Centre for Economic Performance Discussion Paper No 788, April 2007

Related Links
Nick Bloom webpage
Productivity and Innovation Programme webpage

News Posted: 10/10/2008      [Back to the Top]

Wall Street Journal

Depression, recapitalization, greenspan

Nicholas Bloom on the voxeu blog warns we might be on the precipice. “The crisis is shaping up to be a perfect storm – a huge surge in uncertainty that is generating a rapid slow-down in activity, a collapse of banking preventing many of the few remaining firms and consumers that want to invest from doing so, and a shift in the political landscape locking in the damage through protectionism and anti-competitive policies.”

This article appeared in an online blog in the Wall Street Journal on October 10, 2008
Link to article

Related Publications
'Will the Credit Crunch Lead to Recession?' By Nick Bloom in CentrePiece Vol13 Issue 1 Spring 2008
Further reading: Nick Bloom (2007), 'The Impact of Uncertainty Shocks', Centre for Economic Performance Discussion Paper No. 718, March 2006

Related Links
Nick Bloom webpage
Productivity and Innovation Programme webpage

News Posted: 10/10/2008      [Back to the Top]

US News and World Report

Credit crisis to greens: drop dead

Stanford economist Nicholas Bloom finds the good news in the coming global recession.

This article appeared in the US News and World Report on October 10, 2008
Link to article

Related Publications
'Will the Credit Crunch Lead to Recession?' By Nick Bloom in CentrePiece Vol13 Issue 1 Spring 2008
Further reading: Nick Bloom (2007), 'The Impact of Uncertainty Shocks', Centre for Economic Performance Discussion Paper No. 718, March 2006

Related Links
Nick Bloom webpage
Productivity and Innovation Programme webpage

News Posted: 10/10/2008      [Back to the Top]

BBC Radio 5 Live

Breakfast

Dr Tim Leunig, lecturer in economic history at LSE appeared on the programme this morning discussing the government’s bank bail out.

This interview was broadcast on BBC Radio 5 Live Breakfast programme on October 8, 2008
[No link available.]

Tim Leunig webpage
Globalisation Programme webpage

News Posted: 08/10/2008      [Back to the Top]

VOX

The credit crunch may cause another great depression

Article by Nick Bloom on his prediction of a recession for 2009 that he now believes was too optimistic an outlook.

This article appeared in VOX online on October 8, 2008
Link to article

Related Publications
The Impact of Uncertainty Shocks: Firm Level Esitmation and a 9/11 Simulation by Nick Bloom. Centre for Economic Performance Discussion Paper No.718, March 2006
Will the Credit Crunch Lead to Recession? by Nick Bloom. Article in CentrePiece, Volume 13, Issue 1, Spring 2008

Related Links
Nick Bloom webpage
Productivity and Innovation Programme webpage

Also discussed in the Economist blog:
Ghosts of the past
I ALSO read the piece by Nick Bloom to which Richard Baldwin refers and felt it to be over the top.

News Posted: 08/10/2008      [Back to the Top]

BBC Radio 4

Today Programme

Dr Tim Leunig, senior lecturer in Economic History at LSE, was interviewed on Wednesday about the banking crisis.

This interview was broadcast on October 1, 2008
Link to programme

Related Links
Tim Leunig webpage
Globalisation Programme webpage

News Posted: 01/10/2008      [Back to the Top]

The Evening Standard

Brown had to act over HBOS

GIVEN the extraordinary events being played out on global capital markets, should we even be shocked by Lloyd's TSB gobbling up HBOS to create a new banking behemoth? Yes, we should, and not just because of its sheer size some 38 million people will bank or borrow with the combined group.

John Van Reenen's letter was printed in Readers' Views section of The Evening Standard on September 19, 2008
[No link available.]

Related Links
John Van Reenen webpage
Productivity and Innovation webpage

News Posted: 19/09/2008      [Back to the Top]

BBC News

Credit crunch future predictions

Evan Davis hosted a live debate from the Willis Building in the City of London to reflect on the past year of economic turmoil, and to discuss where the credit crunch mess will lead next. The BBC Radio 4 programme The Credit Crunch Mess - What Next? featured contributions from some of the City's leading figures, who gave their predictions for the year ahead. Linda Yueh (CEP Globalisation Programme) warns that more banks could fail.

This article appeared online on BBC news on September 16, 2008
Link to article

Related Links
Linda Yueh webpage
Globalisation Programme webpage

News Posted: 16/09/2008      [Back to the Top]

The Wall Street Journal

The 'same ol' is actually good enough for many

Do common management techniques such as setting targets, monitoring performance and "lean" manufacturing actually help companies become more productive and profitable? An extensive new study suggests the answer is yes. Researchers from Stanford University, the London School of Economics and consulting firm McKinsey & Co. interviewed plant managers and examined financial data. They found U.S. factories to be the best-managed and most-productive, though the authors sound warnings for the U.S. as well.

This article appeared in the the Wall Street Journal on September 8, 2008
Link to article

Related Publications
Can Better Management Sustain Growth in China and India?, Nick Bloom and Rebecca Homkes, CentrePiece Volume 13, Issue 1, Spring 2008
What Drives Good Management Around the World?, Nick Bloom, Christos Genakos, Raffaella Sadun and John Van Reenen, CentrePiece Volume 12, Issue 2, Autumn 2007
Work-Life Balance: the Links with Management Practices and Productivity, Nick Bloom, Tobias Kretschmer and John Van Reenen, CentrePiece Volume 11, Issue 1, Summer 2006
'Measuring and Explaining Management Practices Across Firms and Countries', Nick Bloom and John Van Reenen, Centre for Economic Performance Discussion Paper No.716, March 2006

Related links
Nick Bloom webpage
John Van Reenen webpage
Tobias Kretschmer webpage
Rebecca Homkes webpage
Christos Genakos webpage
Raffaella Sadun webpage
Management and Organisational Practices and their Impact on Productivity and Growth Programme webpage
Productivity and Innovation Programme webpage

News Posted: 08/09/2008      [Back to the Top]