Fiscal Policy - Inequality, Productivity and the Green Transition nexus

Productivity is an enabler of higher wages and better living standards. In view of a suite of environmental challenges – from climate change, species extinction and resource scarcity – being able to do more (or at least the same) with less also represents an important tool in the project to embed advanced economies within sustainable planetary limits. But there are at least one of two significant problems facing all European economies: 1) too often the majority of productivity gains are captured by the richest people in society, and 2) growth in productivity is either stalling and/or being outpaced by asset price inflation. Both these issues increase levels of inequalities and don’t raise the living standards for the majority of people. This puts increasing pressure on output growth and moves us further away from reaching our environmental targets. Solving the shared problems of the inequality, productivity, and green transition nexus is possibly one the greatest challenges facing the Eurozone. Supply side policies, like corporate governance, industrial strategy and finance will be necessary - but is there a role for demand management through fiscal policy?

Speakers:

• Yanis Varoufakis (Author and Greek Politician)
• Maria Nikolaidi (Associate Professor in Economics at the University of Greenwich)
• Eric Lonnergan (Economist and Writer)
• Margit Schratzenstaller-Altzinger (Senior Economist WIFO)
• Ronan Palmer (Associate Director E3G)
• Ana Sofia Pessoa (University of Bonn)