A service of the

Brexit

Deal or no Deal?

Boris Johnson wants to take the UK out of the European Union — deal or no deal — on 31 October 2019. What are the consequences of the UK leaving the EU without a deal? Read a selection of Intereconomics articles on Brexit:

A Hard-but-Smart Strategy and its Consequences by Gabriel Felbermayr
The Harder the Brexit, the Harder the Impact on Northern Ireland by Lucinda Creighton
If Nothing is Achieved: Who Pays for the Brexit? by Michael Hüther, Matthias Diermeier, Markos Jung, Andrew Bassilakis
Macroprudential Risk Management Problems in Brexit by Paul J. J. Welfens

Figure of the Month

Spillovers to and from Italy – periphery Member States

This figure from David Cronin’s and Peter Dunne’s article "Have Sovereign Bond Market Relationships Changed in the Euro Area? Evidence from Italy" from our current issue shows the spillovers beetween Italy and selected periphery EU-countries. Click here for the whole figure.

This Forum and Conference

Data-Driven Economy: Challenges and Opportunities

The transformation of data into an independent and strategic asset poses challenges for companies, regulators and policymakers alike. Intereconomics hosted, together with the German Economic Institute (IW), a conference on the Data-Driven Economy on 17 June 2019 in Berlin to reflect on the challenges and opportunities of competition policy, business models and data governance.

Monetary System

Two Views of the International Monetary System

Barry Eichengreen breaks down the two schools of thought on the future of the international monetary system, named after two top schools: Harvard University and the University of California Berkeley. The 'Harvard view', states that there is a striking degree of persistence in the structure of the system, which is dollar-based and U.S. led to a large extent. Whereas the 'Berkeley view' believes that the system is evolving away from the US and the dollar, toward a multipolar world in which several consequential international and reserve currencies will coexist, other countries will no longer rely exclusively or even mainly on the U.S. for international liquidity and governance will be a collective endeavor. Find out which view he espouses in this article. Spoiler alert: Eichengreen is a Berkeley professor.

Quote of the Month

Ursula von der Leyen

               CC: European Union 2019

"But the crucial point is that – whatever telephone calls were made between Berlin, Warsaw and Budapest – von der Leyen had set out a substantive vision that was clearly aimed at winning over pro-integration forces. In fact, I would argue that, if the commitments are taken at face value, the agenda is the most internationalist-progressive agenda that has been set out at EU level in many years."

from Andrew Watt's editorial Ursula von der Leyen – A Rocky Start, But Brighter Prospects.

Forum

Competition and Competition Policy in a Data-Driven Economy

How has the digital economy changed value chains and competitive processes in many industries and markets? Justus Haucap explains the importance of digital platforms and the essential nature of data across so many industries. And while data has been referred to as the 'new oil' of this century, he jokes that although both data and oil may be extracted via platforms, they are still different in that data is non-rival in use and it is not only non-exhaustible, but growing. These differences have substantial consequences for competiton policy and Haucap lays them out in this article.

Letter From America

Access to Data Will Change the World Power Structure

Access to data - not Artificial Intelligence - and countries' management of that data will determine the future world power structure, says data scientist Lutz Finger. As data usage is a societal decision, different countries will have different regulations regarding data and how to use predictions made from it. For example, in Europe, car insurance companies may not use gender as a data point whereas this data is permissable in the US. While Europe has established its signature legislation on privacy, General Data Protection Regulation (GDPR), the Chinese government's relative lack of regulation and the behavioral information they are able to collect may give them a competitive edge.