Essential Economics is an independent economic research service founded by Paola Subacchi.
Drawing on expertise in the international monetary system, global financial imbalances, international capital flows and international financial centres, Essential Economics specialises in identifying and analysing macroeconomic trends. By combining these insights with a deep understanding of geopolitics and investment strategy, we are able to provide our clients with robust tailored research that helps them to mitigate risk and create opportunity at the international level. Through this, we help our clients to achieve their goal of long-term sustainable growth.
Essential Economics works with a broad range of international clients, including corporations, government departments, international organisations, think tanks and family offices and long-term investment funds.
CHINA AND THE GLOBAL FINANCIAL ARCHITECTURE: KEEPING TWO TRACKS ON ONE PATH
The report commissioned by the Friedrich-Ebert-Stiftung (FES) was published in 2022 when Germany held the G7 chair to help Germany’s parliamentarians better understand China’s role in the international monetary and financial systems.
The report offers a framework for understanding and discussing the structure of the international financial architecture and its purpose in providing the essential public goods of financing for development and a global financial safety net. The report examines the evolution of this architecture since its creation in 1944, especially China’s role as both a member of financial institutions and a builder of new ones. It discusses the consequences of China’s growth for the future of this architecture, and considers options and recommendations for other countries, especially members of the G7 and in particular Europe’s members, on how best to engage with China to get the best possible outcome for all.
INVESTING IN WOMEN: WHAT WOMEN-LED BUSINESSES IN ITALY AND THE UK NEED
The Investing in Women project aimed to discover why Italy and the UK similarly trail behind the other advanced economies when it comes to women’s entrepreneurship.
The project focused on funding because the gender gap in access to finance prejudices the establishment and growth opportunities of women-led businesses. It focused on two countries, Italy and the UK, where there are significant differences in funding available for entrepreneurs, yet in both countries there are just five women entrepreneurs for every ten men (compared to eight women entrepreneurs for every ten men in the US and Canada). Looking for a difference between Italy and the UK that could explain this, the project posited whether the existence of gender quotas for the boards of listed companies in Italy could make a difference.
Much of our work is done for private clients, but we have also worked with government departments and think tanks. Some examples of this work are below.