In this new policy paper (direct PDF link here) from Bruegel, authors Benedicta Marzinotto and Jörg Rocholl argue that the monetary policy response to the credit-tightening of "Basel III" is not likely to be accommodating, and that the aggregate costs of the measures will be differently distributed across countries depending on a variety of issues.

A new ECIPE study by Fredrik Erixon and Matthew Bauer examines the potential gains from a transatlantic zero-tariff agreement on trade in goods. The idea of deeper transatlantic economic integration has become more attractive in recent years. The hopes for an ambitious multilateral trade deal in the Doha Round negotiations have diminished; few countries appear ready to accept ambitious liberalisation on the global level. Leaders have increasingly turned to bilateral or regional trade initiatives, but few of them are capable of delivering sizeable gains to big economies like the European Union and the United States.

"Yollies" is short for "young leading innovators," and Europe is running short on them, argues a new policy brief from Bruegel.   The authors, Bruegel Senior Fellow Reinhilde Veugelers and ULB professor Michele Cincera, explain why the European Union\'s research and development deficit, relative to the United States, can be attributed to the EU having fewer yollies, especially those that are less R&D intensive. Policy makers should pay attention to the heterogeneity across young sectors, say the authors, and design sector-specific measures to boost innovation and growth in the EU.