Author: Silja Sepping

Aggregate demand policy in a time of COVID

  • Large increases in government expenditure generally necessitate restraint elsewhere
  • However at present significant resources are lying idle: no such sacrifice is needed
  • Hence increases in government exenditure currently need not be financed by borrowing
  • Neither need they be recorded as increases in debt owed to the public
  • Today’s circumstances require the explicit coordination of fiscal and monetary policy
  • This could be calibrated by targeting an appropriate target path for nominal GDP

You wouldn’t want to start from here

The world is faced by a major macro policy conundrum

The COVID-19 pandemic and its aftermath pose two fundamental and closely-related challenges to macro stabilisation policy: to specify the framework most appropriate for these novel and difficult circumstances; and to determine appropriate operational procedures.… Read the rest

Silja Sepping

Senior Economist – Prior to joining Llewellyn Consulting, Silja was a Senior Investment Analyst at GLC Global Macro hedge fund where she was responsible for macroeconomic research and market analysis, with a primary focus on emerging markets and FX.… Read the rest

Post Card – Estonia: A country of many faces

Natural beauty and tech savviness make this small state a perfect remote-working destination

I write this overlooking a quiet bay on the Western coast of Estonia. Nearest civilization is about half an hour’s drive away.… Read the rest

Global Letter – Climate change: let the numbers speak


Global Letter - Climate change: let the numbers speak 3

Below1 are the key numbers2 relating to climate change, and some fundamental implications

Definitions and facts

  1. Main greenhouse gases (GHGs): carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O).3
  2. Global warming potential (GWP): differs by gas.
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