NOTHING NATURAL ABOUT THE NATURAL RATE OF UNEMPLOYMENT* *A slightly altered version under the same title appeared in Project Syndicate, November 2, 2017. By Edmund Phelps | Center on Capitalism and Society,  Columbia University | Working Paper #96 | November 2017 Why is unemployment so low in several countries where inflation remains subdued? This phenomenon is a challenge to present-day economics. I was one of the rebels of the ‘60s who rejected the macroeconomics we were taught in the ‘50s – the “Keynesian”...

Mr President, Ladies and Gentlemen, It is a pleasure to be in Brussels today, which doesn’t happen so often for a central banker… who has just arrived from Frankfurt. I welcome the fact that you at EconPol Europe have chosen the euro as the theme of your founding conference, and invited me to give this keynote speech. Since Maastricht 25 years ago, we have succeeded in building a Monetary Union. However we have not delivered on Economic Union. To avoid...

The Commission proposes new targets for the EU fleet wide average CO2 emissions of new passenger cars and vans to help accelerate the transition to low- and zero emission vehicles. The Commission today took a decisive step forward in implementing the EU's commitments under the Paris Agreement for a binding domestic CO2 reduction of at least 40% till 2030. At the same time as the international climate conference takes place in Bonn, the Commission is showing that the EU is...

The Eurogroup meeting took place in two formats: the first part was a regular meeting of the euro area ministers, while the second part was a meeting of the ministers of 27 EU member states with the aim of preparing the December Euro Summit. In September, President Tusk announced that the Euro Summit, which is expected to discuss matters related to the Economic and Monetary Union (EMU), would take place in an inclusive format. This includes the euro area member states and...

The European Investment Bank (EIB) and Nacional Financiera (NAFIN), one of Mexico’s leading development banks, have signed a USD 100 million loan to support climate action projects in Mexico. The loan to NAFIN will be on-lent to private sector borrowers to develop wind farm projects, including one 200 MW farm located in the State of Coahuila, northern Mexico and a 130 MW farm in the State of Zacatecas.  The development of wind energy in Mexico supports national targets for renewable energy...

The European Investment Bank and SKB, Sweden’s largest non-profit privat housing co-operative, signed a EUR 56 million loan agreement to build new minimum energy apartments in the Stockholm region. This is the first time the EIB provides direct financing for energy efficient residential buildings in Sweden, which are also known as “nearly zero-energy” buildings. “We are happy to support SKB in its long-term efforts to create sustainable, and climate friendly housing in the capital region,” said EIB Vice-President Alexander Stubb....

Ladies and gentlemen, I come full of hope for my country, for Europe, for the bilateral relationship between both countries. And full of willingness too. A few words about our bilateral relationship. I believe in a strong transatlantic relationship. Between the US and France. We share a huge responsibility on the world stage. We live in an unstable world – both politically and economically. And I am convinced we have a better chance of successfully dealing with the many challenges we face if...

The European Investment Bank (EIB) is lending EUR 50m to Transgaz, the national gas transmission company of Romania, to finance the construction of a new European gas transmission corridor to increase security of gas supply and to reduce energy dependence by making it possible to diversify gas supply routes and sources. This operation is backed by the European Fund for Strategic Investments (EFSI) under the Investment Plan for Europe (IPE). The new pipeline represents the first phase of the Romanian section of...