Covid19 / Is pandemic same as war? In economics, yes, but....
The link between war and pandemic, so frequently evoked these days, allows us to reflect on the role of the State in the management of emergencies, explains Andrea Colli, professor of economic history at Bocconi, in this video: "During the First World War and in the following years the link between emergency and public intervention was very close," explains Colli, "as the State's control over companies progressively increased. Even in the current situation, public intervention is particularly invasive, not only in Italy but also I n many other advanced democracies. We will have to see how this situation evolves in the future".
Covid19 / helicopter money yes, but watch out for risk of inflation
With the prospect of an economic crisis, there is a return of talk about helicopter money - that is, the request to central banks to make available, as if distributing from above, large amounts of money, explains in this video Luca Fantacci, professor of economic history at Bocconi. "This term was coined for the first time in 1969 by Milton Friedman but the first to use it was the governor of the Fed, Ben Bernanke, during the financial crisis of 2008," explains Fantacci. "The difference, however, is that in the current situation the money will be given not to banks but to governments, which will then distribute it to businesses and families in difficulty. This is good, but watch out for the risk of inflation".
Covid19 / Communication at the time of Coronavirus
The situation in which we find ourselves leads us to rethink the ways in which we relate and work with others, explains Massimo Magni, professor of Business Organization at Bocconi, in this video: "A first problem, working at a distance, concerns the difficulty in coordinating, because there is a lack of spontaneity regards face-to-face communication", explains Magni, "so it is necessary to give oneself some rules. A second aspect is the difficulty in interpreting messages, which are generally too short and concise. The third aspect is isolation, which leads to forgetting one-on-one relationships".
Covid19 / Eurobonds and debt mutualisation: what the Treaties provide for
With its latest decisions, "the ECB has bought us some time," explains Carlo Altomonte, professor of European economic policy at Bocconi University. The European Central Bank will put a thousand billion euros of purchases of financial assets on the market "and this money will probably be enough to face the crisis that Italy will have to face in terms of new public debt". However, warns the professor, "In the medium term there will be a problem: the public debt of all member states will increase from 20 to 30 percentage points and when the ECB stops buying it, in December 2020, the market will test the willingness of the Central Bank to support it in the long term". This will lead to stress on the Eurozone and, continues the professor, "to avoid future problems we need to intervene today with a fiscal instrument". With a clarification: "Coronabonds, Eurobonds and any form of debt mutualisation are not provided for today in the existing legislative framework, so the Treaties and probably the German constitution would need to be changed". Consequently, concludes Altomonte, "we must invent debt instruments that are common and accessible to all member states. Without prejudice, let's see whether we can activate these instruments between the lines of the European Stability Mechanism and/or the European Investment Bank".
Covid19/ The energy crisis, a test for governments
The coronavirus crisis also impacts the energy sector, with strong reductions in the consumption of oil, electricity and gas, explains in this video Matteo Di Castelnuovo, SDA associate professor of practice and expert in energy economics. "Regards the future, the worry of analysts is that the collapse in the price of hydrocarbons will push companies to slow down investments in clean energy," says Di Castelnuovo , "which are already destined to decrease due to problems in the supply chain, especially in China. But even in the long term the risk is that these investments, which reached a peak in 2017 and have not grown further, will suffer strong contractions. This is why", continues the professor, "the role of governments becomes important, called upon to a real test, who could launch sustainable stimulus packages".
Covid19 / Why the EU has chosen to close borders
The European Union has asked member states to close their borders. Why? "For two reasons," explains Eleanor Spaventa, professor of European Union Law at Bocconi. "The first is that the EU and the Commission have realized that citizens need to feel the closeness of Europe’s institutions, after, for example, Christine Lagarde's gaffe. A concrete gesture was therefore needed". Secondly, "the Commission is concerned that many member states have already chosen to close their borders, which is why, in its communication, it asked the member states to nonetheless create privileged corridors for goods".
Covid19 / How companies recover from crisis
Research on crisis management and natural disasters identifies three types of behaviour by companies in order to recover from a trauma, as Carlo Salvato, a professor of strategy at Bocconi, explains in this video: "There are those who go bankrupt and must therefore receive massive aid from governments; there are those who are resilient, that is, who come out of the crisis by returning to their starting positions also thanks to aid such as redundancy funds; finally, there are those who take advantage of the crisis to become more competitive with courageous investments in technology".
Covid19 / The EU will need a common fiscal policy
“Regards the coronavirus crisis, the EU’s response has been ‘standard’ ,” Carlo Altomonte, professor of European economic policy at Bocconi, explains in this video. "On the one hand, the ECB has yes mobilized all the tools at its disposal, but they have been poorly communicated. On the other hand, the member states said they wanted to do everything possible, but then left it up to the individual states to act for themselves". Which, the professor continues, "is fine during the emergency, but not in the long term. In the long run, we will need to bring money to families and businesses and to do so we will need a common European fiscal policy".
Covid19 / Financial system, the key short and longterm factors
The relationship between the coronavirus crisis and its effects on the financial system is complex and will produce effects for a long time, explains in the video Stefano Caselli, professor of international finance at Bocconi: "Today, volatility is the key word for the financial markets, unlike other crises which were driven by factors internal to the system," explains Caselli, "and much depends on the ability of financial authorities to instill confidence. The long-term effects depend on governments’ actions today to protect health and jobs. And after the crisis it will be also fundamental to help banks remain the backbone of the economic system.”
Covid19 / On social networks there is not only fear
social networks are being accused of spreading fears and fake news about the Coronavirus - but from an analysis of tweets posted in recent weeks in Italy a partially different reality emerges, as Gaia Rubera, digital analytics expert, explains in this video. Four, in particular, the topics of discussion on Twitter: the situation of the Red Zone, the possibility of the virus spreading, fear about the geographical origins of the virus, the repercussions on the football championship.
Covid19 / Reviewing contracts is possible, but not always easy
Among the many legal issues raised by the Coronavirus outbreak is the question of contracts executed before the emergency, explains Marco Ventoruzzo, professor of International business law at Bocconi. “Legal systems do provide for such cases but applying these remedies is not always clear and there can be consequences of their application. And at international level the different legal systems have different interpretations of what constitutes an ‘exceptional event’.”
Covid19 / Smart working promotes worklife balance
"In a period like this, in full emergency, smart working takes on a relevant role," says Paola Profeta, professor of public finance at Bocconi. "And an experiment we conducted in a company shows that people in smart working increase their productivity and have better wellbeing and work-life balance. And smart working is particularly beneficial for women, with fathers sharing more domestic responsibilities.”
Covid19 / Economy: The uncertainty of a supply side shock
Regards the economic consequences of the Coronavirus the main worry is the supply side shock which is occurring, says Francesco Giavazzi, professor of economics. “This is caused by the reduction in production and the decrease of working hours. And being a supply side shock it is very different from the ones we have been used to in the past.”
Covid19 / Research backs value of containment measures
In controlling viral epidemics closing down schools and shutting public transportation are measures that work, explains Jerome Adda, Dean for Research, drawing on results from his research. “They do not eradicate the epidemic but reduce the number of cases for a while. The cost of these measures is high and my research shows that a virus would have to be 2 to 3 times more deadly than a common flu to justify them. And the Coronavirus is about 20 times more deadly so these measures are indeed justified” The other important factor, he explains, is seasonal. “Most viruses thrive in winter, but die out in the spring and summer, so it is important is to delay the propagation until better weather kills them off.”
Covid19 / EU pushing research but more coordination on controls is needed
The Coronavirus knows no borders and coordinated international, and European in particular, action is required, explains Gianmarco Ottaviano, professor of the Achille and Giulia Boroli chair in european studies. “The EU has been very active in funding specific research on the virus, allocating around 230m euro – including 100m to the WHO, in a coordinated effort, and 90m in partnership with the pharmaceutical industry. More effort however is required in coordinating and programming testing and diagnostics on the European territory as so far countries are going along on this front.”
Covid19 / The wider impact on the global value chain
The economic impact of the Coronavirus on commerce and tourism, and thus on GDP and growth, is evident but there are other more subtle impacts, as explains Italo Colantone, professor of economics and expert in international trade and economics. “These are related to how companies organize activities in the global economy, how they are coordinated and connected between countries. If a factory, or a whole region, in China shuts down it has effects around the world. It is estimated 94% of major US companies will face issues in the coming weeks. All this leads to great uncertainty and with it being so difficult to predict how the shock will evolve it has effects on investments and growth.”
Ilva, Emblem of the Absence of an Industrial Policy in Italy
The Ilva steelworks in Taranto has had a troubled history since its birth in 1959. But the real problem today, as Andrea Colli explains in the video, is not so much the lack of an Italian policy in capital intensive sectors but the absence of a real industrial policy. A problem that the current and future governments will have to face
The Making of a Work of Art
Artist and designer Lorenzo Petrantoni selected 20,000 cuttings from scholarly papers, books, and theses, that embody Bocconi’s knowledge and used them to cover his Knowledge That Matters installation. This short video shows the way the artist worked.
Liu Bolin Disappears in Time Lapse
The last step of Chinese artist Liu Bolin's live performance at Bocconi University. The event was organized in collaboration with Boxart Gallery and MIA Photo Fair
Video/Brexit, the complexities of a second referendum
Britain's Labour Party has announced it will support a second referendum on Brexit but the matter is not so simple, as explains in this video Eleanor Spaventa, of the Department of Legal Studies. First of all there is no parliamentary majority to vote legislation for a second referendum. And then there is the complex question of what exact choices to put on an eventual ballot, what the public would be called to vote for
VIDEO/Fashion shows role in brands storytelling
As the latest Milan Fashion Week kicks off, Emanuela Prandelli, of the Department of Management and LVMH Associate Professorship in Fashion and Luxury Management, explains how globalization and social media have changed the role of fashion shows, which now target a much wider, more extended audience. Catwalks have been transformed intro true shows, she explains, and are now a fundamental part of fashion brands’ storytelling
Bocconi International Fair 2019
Over 2000 students participated in the Bocconi International Fair, the annual fair to present students with all the opportunities for study and work abroad offered by the University.
Video/ GDPR should be focus of a more safer and responsible Internet
As Safer Internet Day is celebrated around the world today the focus should centre on the added values and benefits brought by GDPR, the General Data Protection Regulation introduced by the EU last May, as explains in this video Oreste Pollicino, of the Department of Legal Studies.
Video/Progressive fiscal systems and social mobility to fight global inequality
The latest Oxfam report on inequality highlights that the richest part of the world population has grown even richer – the richest 26 people in fact have the same net worth as the poorest 50% of the world population. Despite some disputes on the data there is no doubt, explains in this video Guido Alfani of the Department of Social & Political Sciences, that inequality in the world is continuously on the rise. To combat this phenomenon, he argues, we should move towards more progressive fiscal systems and promote greater social mobility
Video/The factors that could bring together Obrador and Trump
On December 1 Andrés Manuel López Obrador takes office as Mexico's new President. Mexico’s relationship with the US is one of the uncertainties of this new presidency with the two presidents having very different ideological positions. But certain factors could lead to Obrador and Trump having a good relationship, explains in this video Antonella Mori of the Department of Social and Political Sciences. Both are anti-establishment presidents, explains Mori, and also the NAFTA agreement, which could have been a source of tension, has been revised. And also, she explains, Obrador wants to develop the poorest regions of southern Mexico which is a goal that could be supported by Trump as a way to block migration to the US from Mexico and by Central American migrants passing through Mexico to the US.
Video/2018 Midterm Elections, the Implications of a Divided Government
The divided government which has resulted from the 2018 midterm elections in the US will provide a check on power but also makes it less likely legislation will be produced, explains in this video Anthony Bertelli of the Department of Social & Political Sciences. And in terms of checks on power, he says, investigations could raise issues. Whilst in terms of results, moderate Republicans paid a price whilst to do so well Democrats showed quite an ideological diversity which could raise difficulties for them regarding policy making and agenda
Video/Outlook for Brazil's Economy with Bolsonaro
Liberalizations, privatizations, deregulation - Jair Bolsonaro has promised pro business policies. Done in the right way – not creating private monopolies, not deregulating the environmental sector and with pro competition policies for example - it could render Brazil’s economy more modern and competitive, explains in this video Antonella Mori of the Department of Social & Political Sciences. Done in the wrong way, the policies could increase inequalities in the country or further damage the environment.
Video/The New Role of Fashion Shows in Brand Strategy
Aimed at wider audiences and a part of brands’ storytelling, as Milano Fashion Week kicks off today the fashion shows will be consolidating their new role as of recent years, as explains in this video Paola Cillo of the Department of Management &Technology. Fashion shows have in fact taken up a new role in in company strategy and are now aimed at a wider audience (the general public and consumers and not just journalists or buyers) thanks also to the fact that images of shows can now be shared, and commented, immediately on the web and social platforms. Fashion shows are also no more simply a commercial tool but are now part of a brand’s wider storytelling strategy. And they have become more and more real pieces of art – where the true content is not so much the product but the messages that the designer wants to convey about the brand.
Video/Lehman Brothers could, and should, have been saved
Ten years after the bankruptcy of Lehman Brothers, it is clear that the failure to bail out the American investment bank was a big mistake on the part of the US financial institutions, as also acknowledged in retrospect by Ben Bernanke and Henry Paulson. They claim, however, to have done everything possible but that there was no legislative possibility for rescuing the bank. Is this true or is it legitimate to doubt this, Stefano Rossi, Generali Group Chair in Insurance Risk Management at Bocconi, asks in this video, given that later on other institutions were saved?