The Great Debate UK
–Martha McKenzie-Minifie is Editor of International Consumer Economics and Ian Bright is Senior Economist at ING. The opinions expressed are their own.–
In the 2009 film Confessions of a Shopaholic, Rebecca Bloomwood remembers herself as an enchanted seven-year-old, watching shoppers hand over their credit cards and walk out of the store with new shoes, dresses and other shiny, sparkly splurges: “They were beautiful, they were happy. They didn’t even need any money. They had magic cards.”
Academic research into the “pain of paying” suggests that people tend to react differently to shopping on credit card than they do to shopping with cash. In their famous paper The Red and the Black: Mental Accounting of Savings and Debt, the authors Drazen Prelec and George Loewenstein, argue that credit cards alter the point at which the “pain” of paying for something happens – making it tempting to enjoy goods or services immediately only to feel the pain when the bill arrives in the future. With cash, they contend, that pain is more immediate.
That paper was written back in 1998 and since then the payment landscape has changed dramatically: contactless payments; moving money by text message; mobile banking.
–Tim Dolan is a Partner in the Financial Markets team in King & Wood Mallesons SJ Berwin’s London office. The opinions expressed are his own.–
With the Financial Services Authority (FSA) already replaced by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), what use does the UK have for another new financial sector body, the Banking Standards Review Council?
By Rob Cox
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
At the opening of the Confederations Cup in Brasilia a year ago, President Dilma Rousseff was booed by thousands of soccer fans for all of Brazil to see. It’s easy to understand then why she isn’t planning to speak at Thursday’s opening ceremony of the World Cup. An embarrassing turn as host of Earth’s biggest sporting event - or crushing repeat of the 1950 Maracanaço - may be the greatest obstacle to her clinching a second term.
from The Great Debate:
The furor surrounding the exchange of five Taliban prisoners for Sergeant Bowe Bergdahl this week has exposed the murky world -- and impossible choices -- of the families of Americans taken captive by militants.
Demands for vast ransoms or for prisoner releases put these families in the excruciating position of seeming to be able to save a loved one’s life. Meet demands and your beloved lives. Hesitate and carry responsibility for their death to your grave.
–Dr Marie Julie Chenard is Deputy Head of the Cold War Studies Programme at LSE IDEAS and Academic Officer for the Dahrendorf Symposium Project at the London School of Economics and Political Science. The opinions expressed are her own.–
The European elections are the second biggest exercise in democracy world-wide (behind India). Nearly 400 million EU citizens were eligible to vote their representatives to the European Parliament between the 22nd and 25th May, but only 43% actually did. What can be done to increase participation in elections that have an impact on 500 million people?
from The Great Debate:
Eyewitness View: From hope to horror in Tiananmen Square On Changan Avenue, a small crowd confronts the People's Liberation Army (PLA) in Tiananmen Square after the army stormed the square and the surrounding area the night before. This is near the location a day later where "Tank Man" confronted and momentarily halted a column of the army's tanks leaving the square. (Alan Chin)June 4, 1989. In Chinese the reference is usually made with just the numbers “Six Four,” like in English, “9/11.” As the 25th anniversary of the Tiananmen ...
Up until Monday, Italy used to be known as the sick man of Europe. It has huge debts, sclerotic growth and had been ruled by a billionaire prone to a bunga-bunga parties. It was at risk of becoming the laughing stock of the currency bloc. The relationship in recent years between Italy and Germany has been dreadful. But could things be about to change?
Italy could become the best man of Europe after the EU elections last weekend. Italian Prime Minister Matteo Renzi’s Democratic Party won an impressive 33% of the vote, beating off competition from the anti-establishment Five Star Movement led by Beppe Grillo. Silvio Belusconi’s Forza Italia was left straggling in Renzi’s wake with only 18% of the vote.
–Sheila Lawlor is Director of the London think tank, Politeia. The opinions expressed are her own.–
As UKIP’s earthquake materialises, with the party topping the European poll and the Conservative party narrowly missing second place, a shift in the political landscape is underway. Even before counting of the council votes had finished, or that for the European parliament had begun, the message from voters was clear – people were returning to the values with which they most readily identify: socialist or conservative.
–Vashi Dominguez is the founder of Vashi.com. The opinions expressed are his own.–
When the European Union and the U.S. took action against Russia over the invasion of Crimea and the crisis in Eastern Ukraine, alarm bells immediately rang for the diamond industry. Russia is one of the biggest suppliers ($2.8 billion last year) of rough diamonds for Belgium, through which 80% of all rough diamonds and 50% of all polished stones pass. If Antwerp were to lose access to Russia’s diamonds, it would be the latest in a string of challenges facing the world’s diamond trading centre.