Fwd: Sterling has not become an emerging market currency



Sterling has not become an emerging market currency

And neither will it any time soon.

© AFP via Getty Images
   
June 26, 2020 9:21 am by Jemima Kelly and Claire Jones

The idea that sterling has effectively become an emerging-market currency has become something of a common refrain in the four years since the Brexit vote.

Bloomberg's Sid Verma asked whether the pound was the "new Mexican peso" as early as October 2016, and the idea that it should be treated as an EM currency has been repeated many times since then. In September last year, then Bank of England Governor Mark Carney became the most high-profile person to join this gloomy chorus, pointing out that sterling volatility was at "emerging market levels", and that the currency had "decoupled" from its peers.

On Wednesday, it was the turn of a Bank of America analyst named Kamal Sharma, who said movements in the exchange rate had become "neurotic at best, unfathomable at worst" (we're not quite sure what that means either), and that the pound was now an emerging market currency in all but name. Apparently Brexit had turned the pound into a mirror of the "small and shrinking" UK economy.

So is there any truth to this? We'd argue no.

For a start, for sterling to really be an emerging market currency, wouldn't Britain have to be an emerging market? It seems an odd designation for the fifth- or sixth-biggest economy in the world, where income-per-capita is above $45,000 (almost four times above the threshold the World Bank sets to demarcate a "high-income country").

Ironically enough, those that argue that sterling is an "EM currency" are surely using very much the wrong term here. If the country is wilting away, surely "emerging" is the wrong word? Wouldn't shrivelling be better? Drooping? Submerging? A wilting market currency, perhaps? "Emerging" suggests that the country's economy is growing.

Second, just because implied volatility — a measure of the market's expectations for future gyrations in the exchange rate — is high, why should that suggest the pound is an EM currency? Clearly Brexit has been destabilising and has left the future unclear, and we all know that the one thing markets can't stand is uncertainty, so it doesn't seem very surprising that volatility — both actual and implied — is raised. Once some political stability has been reached, it seems likely that volatility will fall too.

Third, just because there is now less liquidity in the pound than some of its major peers like the dollar or euro, that again does not mean it is an EM currency. There's a difference between no longer being in the hallowed "G5" group of currencies — which it is not at all clear the pound has fallen out of permanently either — and being an emerging market currency. The Swedish krona isn't particularly liquid, but it's not considered EM.

We called up Stephen Jen, CEO of Eurizon SLJ, a hedge fund that specialises in emerging markets, to get his thoughts on the matter. He was pretty emphatic about the fact that sterling was very much not an EM currency in any way, shape or form, telling us (emphasis ours):

When you think of the uses of money — you have store of value, unit of account, medium of exchange — on all three measures it's very difficult to argue that sterling is not one of the prime, prime, currencies in the world. It's the number three reserve currency in the world, based on the global data, and it takes a lot of soft power for a currency to achieve that status. If you look at all the currencies that have a reserve status, they are issued by countries that have a lot of soft power. It's not just economic might — look at India and China, their currencies are nowhere on the list. 

It's difficult to lose that soft power, which would include things like culture, rule of law, if it's perceived to be fair, if it operates without a lot of intervention or controls from the government, no surprises, and if it's governed by English law, which is well understood by the markets and the world — intangible and difficult-to-quantify practices of a country. All of these underpin the support for a currency such as sterling, and it's very difficult to supplant such a status.

In for a penny, in for a pound

We also called up Savvas Savouri, chief economist at Toscafund Asset Management, another hedge fund, to get his take. He told us the idea was nonsense, and that anyway he didn't necessarily feel that calling sterling an EM currency was pejorative, given that could just be interpreted as meaning that it was grossly undervalued. He told us (our emphasis, again):

This time next year the pound will be materially stronger, in all dimensions. One thing I've always remained steadfast on is that there will be an eleventh hour deal to avoid a no-deal Brexit… and the pound will then gap up — to 1.3 against the euro and 1.6 against the dollar. That's just using back-of-the envelope, econ 101 calculations.

Another characteristic of emerging markets (that is very much lacking in Britain's case) is that their businesses and governments often borrow in foreign currencies — usually the dollar or the euro — due to the lower cost of borrowing associated with assets denominated in leading currencies.

If you're located in the UK, it's difficult to see why you'd bother to do that, given that the government's cost of borrowing for five years is near record lows of -0.06 per cent hit on Thursday, and the cost of borrowing for ten years remains ultra low at around 0.15 per cent as of Friday morning.

It's also worth remembering that, as Jen points out, the UK has global reserve currency status, making up 5 per cent of official sector reserves, according to IMF data. That's more than the Swiss Franc, Australian dollar and Canadian dollar combined. The Fund's figures also show that the proportion of claims in sterling have actually risen since the vote in the middle of 2016.

Why does this matter? Because it lessens the risk that the cost of borrowing for the government will rise substantially any time soon.

All this is not to say that the pound's status hasn't been significantly affected by Brexit; clearly it has been, at least temporarily. But the UK is still one of the world's biggest and most influential economies, with leading universities, the English language, and high-quality cultural and manufacturing exports. Let's not get carried away; the Great British Peso will live to see another day.

Related links:
Pound is becoming an emerging market currency, says BofA analyst — FT

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Economists from the Panel of Experts of the Daily E answered the question: What was the best  economic measure taken in Slovakia during the coronary crisis and what  underestimated or failed to do as it should?    Since many members of the panel work for the government, we encouraged them to write as well  about what they personally succeeded in, what they made a mistake and what happened in the last  months learned.    Answer Draxler, Miklos, Odor, Hirman, Vlachynsky, Kazimir, Beblavy,  Letovanec, Ovcarik, Vasakova, Molnarova, Melioris, Suda, Stefanides, Blahova  and Kovalčík.    [TIP: Activate the evening newsletter with the best articles of Diary N that you have yet  They read. Just click once to activate. ]    First, a very brief selection of answers:    Juraj Draxler, Head of the Institute of Strategic Analysis of the Slovak Academy of Sciences, former  Minister of Education:    Unofficially circulating information that government officials enough  the question of whether higher aid spending would make us worse        rating. But this is a relatively absurd approach if our economy shrinks sharply,  we have an even lower rating downgrade.    Ivan Mikloš, economist, former Minister of Finance:    The greatest responsibility for how effectively government and government works  the coalition has a prime minister and the chairman of the strongest coalition party,  so mistakes can be corrected by changing Igor's driving style  Matovic. Especially the transition from micromanagement to strategic  management.    Ľudovít Ódor, Vice Governor of the NBS:    I understand that the situation is complicated: a new government, an unprecedented downturn  economy and a big hole in the budget. However, over time, these are  arguments in favor of a slower reaction time are becoming less and less  applicable. In the second phase of the fight against the corona, Slovakia needs  in addition to investment and other incentives - also major systemic changes, ideal  from next year. Time is running.    Miriama Letovanec, Director of the Implementation Unit of the Office of the Government, part no. on the  maternity leave:    Inventing a measure does not mean automatically delivering it to those who do it  they need. Three months have passed and the numbers we see are not positive -  not only from the point of view of drawing aid, but also from the development of the economy.    Karel Hirman, energy analyst:    So far, the most unnecessary has been the controversy over Sunday's sale  and the most questionable was the principle: all power hygienists. hygienists  they have nothing to determine the framework conditions of business and do not have their own  abuse the position to unnecessarily bully the business  sector, especially at such a difficult time.    Lívia Vašáková, Head of the Economic Analysis Section of the Representation of the European Commission  in Slovakia:    While Slovakia managed the epidemic of COVID-19 after medical treatment  page, economic indicators for the first quarter show sharp  economic downturn. GDP fell by 5.2% and employment by 0.5%, which  Slovakia is one of the most affected countries, such as Italy,  Spain or France. It also dropped significantly in March and April  industrial production and Slovakia were again among the most affected  countries.    Martin Vlachynský, INESS:    States are in debt at an incredible pace, emerging from evening to morning  new social schemes not for people, but for entire industries, are being considered  the entry of the state into private companies, the printing of money also overcame  the darkest moments of the 2008 crisis, the European Union is preparing  introduction of a number of new taxes ... But the most bizarre thing is that politicians  (but also many economists and analysts!) gradually believed that us  not a tough crisis, but a new era of incredible prosperity. Suddenly we are talking  billions for hospitals, new motorways, sewers in all villages,  thousands of rental apartments, I'm just waiting for the return of the wide-gauge railway.    Peter Kažimír, Governor of the NBS    Deferrals of repayments are clearly the best domestic measure. It was  it's simple, understandable and fast. Too bad this principle  did not apply always and everywhere. Trying to help the addressee is fine, well  it was lost due to the "jeweling" of economic measures  precious time.    Ivana Molnárová, director of Profesia.sk:    I consider compensation to be both a positive and a negative measure  labor costs. But the only positive thing is that I state these  contributions provided to entrepreneurs. Everything else around this  however, the measures were no longer unintended or only communicative  uncontrolled.    Miroslav Beblavý, economist, former chairman of the Spolu party    The best economic measure was to stop the corona in its infancy.  A short-term halt to the economy is nothing compared to what we would  experienced if the corona spread in the American way.    Maroš Ovčarik, specialist in personal finance and investment,  Partners Investments    One of the best measures that has been implemented during  coronation crisis, was an agreement with banks to defer loan repayments. Here is  important not only the idea itself, which helped to breathe financially  to date, more than 160,000 people and 9,000 companies.  The implementation was essential, ie the simplicity and speed of the equipment.    Libor Melioris, economist    Overall, it turned out poorly. The most visible measure - direct  aid turned out to be the poorest.  The average monthly support per job is less than  300 eur. The regime is particularly schizophrenic towards self-employed people.  In good times he tolerates not paying taxes, but in bad times he does  faces that tradesmen do not exist.    Pavol Suďa, chief analyst of the Finstat.sk portal    Intuitively, it seems to me that the effect of the measures will not be dramatic. That key  will be how our economy will cope with the collapse of the foreign  demand, the rapid recovery of which is questionable. In this area yet  I don't see ideas or suggestions to local employers  essentially dependent on exports.    Zdenko Štefanides, chief analyst of VUB banka:    At the onset of coronacoma, I would welcome an immediate bridge to it  flat-rate money transfer to all households, not just directly  crisis-stricken. That didn't happen, and that's why speed was important  alternative forms of assistance, since the enlargement of the PRC, the introduction of  kurzarbeit, deferment of payments of levies or tax advances, but also installments  loans.    Renáta Bláhová, tax advisor and auditor at BMB Partners, member since April  Advisory Team to Minister of Finance Heger:    Direct financial assistance through the Ministry of Labor was for objective reasons  slower, to this day has many critics because it is targeted and limits  posts are set too low. There would be shortcomings here  correct by extending aid schemes that have already started, if any    by the end of the year, and contribution limits will be increased. Addressability I would definitely  did not recommend changing, as a deterrent example could be our Czech neighbors, where  called. helicopter money has become an attraction for fraudsters. In Slovakia, we have it all  reasonably foresaw.    Ján Kovalčík, analyst, INEKO:  Looking back shows contributions to job retention  they could also be higher. Well, it's easy to comment on what we know today,  when the economy is opening up fast and the circle of potential applicants is growing  narrows. At the time of decision making in March or April, I would  significantly more generous support was probably considered budget  Stunts.    Martin Kahanec, economist, labor market specialist, founder of Central European  Labor Studies Institute (CELSI)    Without a well-thought-out testing, tracing and isolation system  In some cases, we risk emerging large outbreaks of pandemics without  we captured and eliminated them quickly enough. It would help  systematic testing of people at risk, geographically  scattered occupations with a high frequency of contacts: because of them  health, but also because it would give us like litmus papers  helped find outbreaks. Systematic area testing of waste  water and all blood samples taken for the presence of coronavirus, respectively  coronavirus antibodies would also help us to effectively identify germs  such outbreaks.    Andrej Svorenčík, economist at the University of Mannheim:    We can show and forbid in extraordinary circumstances, but  more complex activities are still, unfortunately, still beyond our borders  options.    And now complete answers from the best Slovak economists:    Juraj Draxler, Head of the Institute of Strategic Analysis of the Slovak Academy of Sciences,  former Minister of Education    By far the most effective measure was the introduction of wage subsidies  (simply called kurzarbeit). Therefore, it is one of the primary  measures in virtually every country, not only in our country.    Unfortunately, in our country the measure started to be implemented late and cumbersome  (complicated filling in of statements even for self - employed people who wave  in other countries access to much easier assistance) and in a very limited way  a.    The ceiling is so low that it will do great damage to skilled workers, exactly those  which our economy should strive to maintain. In the beginning, in addition, the measure  introduced not widely, but only for small and medium-sized enterprises. And that's purely because the government  she could not understand that the aid would have to be relatively broad.  At the same time, she calculated whether she had "enough money", although even in early April, when she was still  aid from the EU level was not in full swing, resources were. Unofficially circulating  information that government officials were quite busy questioning whether we were bigger  aid expenditure will not downgrade the rating. But this is a relatively absurd approach to us  the economy will shrink sharply, the downgrade is even more certain.    Throughout the story of economic aid, I am fascinated by how weak it is and even that it is  little awareness here. And this despite the fact that whoever wants to see how massive  and other countries reacted quickly and that we are also indirectly pushing us for more aid from the European    Union. There is still a kind of misleading belief that after the opening of the economy  everything will return to roughly normal, which is not true at all.    In addition, instead of a centralized discussion on selecting the most effective tools  here, for example, the crisis use of Eurofunds left practically purely to the departmental  gravity: what the ministries come up with, money is put into it. That's almost  criminally irresponsible, it will be slow and some resources will probably be wasted on  inefficient things.    On Tuesday, I chaired a meeting of several domestic economic experts, they agreed  we believe that even the latest NBS forecast has strongly undershot the effects of the crisis on  employment (its forecast is 70,000 lost jobs  in a more conservative scenario and about 100,000 in the worse). In fact, we should  to talk about at least double numbers, even if only in relation to the existing ones  jobs in Slovakia.    An additional problem on the labor market will be the return of Slovaks from abroad, especially  due to brexite, it has already begun and will intensify with the shortening of the transitional period.  At the same time, we have no response here in terms of labor policy or incentives  domestic demand, which will have significant consequences. Politically, then, it will be interesting  the question of whether people will usually suffer in silence at home or whether there will be stronger ones  social explosion.    Ivan Mikloš, economist, former Minister of Finance    I consider the best economic measures during the corona crisis to be those  which were fast and automatic, such as extending deadlines to  filing tax returns and a relatively quick agreement on a solution  the problem of canceled tours in travel agencies. In the same way  positive, although delayed, was the agreement to cancel the bank  drain.    On the other hand, concerns (also mine) have been confirmed that help people, entrepreneurs  and the economy will be slow and insufficient. I evaluate this, of course, negatively,  as well as the pointless extension of the Sunday sales ban even after the lifting  emergency.    Delayed and insufficient assistance can also be caused by previous inexperience  most members of the new executive, but I think the main problem lies  in inefficient management within the government and the governing coalition. largest  the prime minister is responsible for how effectively the government works and the governing coalition  and the chairman of the strongest coalition party, so this mistake can be corrected by change  management style by Igor Matovič. Especially the transition from micromanagement  to strategic management.    Ľudovít Ódor, Vice Governor of the NBS  Measures that were either relatively automatic worked best  (for example, the PRC), or were processed through the private sector (deferral  loan repayments). It turned out that the mentality that helps in  detection of abuse of public systems is rapid when needed  and sufficiently large aid is a significant obstacle.    Simply put, bureaucratic procedures and outdated processes have slowed down much of the support.  The approval of state aid by the European Commission also has reserves in flexibility, although  it must be said that the system is more flexible than in the past. Also an agreement between the government  and commercial banks insists on my taste for a long time.  I understand that the situation is complicated: a new government, an unprecedented economic downturn  and a big hole in the budget. Over time, however, these arguments are in defense  slower reaction time is becoming less applicable. Slovakia needs in the second  phases of the fight against the corona - in addition to investment and other incentives - also large systemic ones  changes, ideally from next year. Time is running.    Miriama Letovanec, Director of the Implementation Unit  Government Office, t.č. on maternity leave    Inventing a measure does not mean automatically delivering it to those who do it  they need. It's been 3 months and the numbers we're seeing aren't positive -  not only from the point of view of drawing aid, but also from the development of the economy.    Delivering a measure therefore does not just mean allocating a specific package  public resources. When creating measures, it is necessary to look not only at  whether they worked abroad, but from the point of view of deliverability also take into account  administrative and organizational constraints of the Slovak public sector.  As in the private sector, we need to take action before launching  test from the process side. It doesn't take months or time to create such a process map  emergency situations, such as the economic corona crisis, it is possible to shorten these  actions on. After more than two decades, politicians still have not learned their lesson - they announce  its initiatives at a time when many unknowns are still entering the equation  variables. At the same time, it would be enough to wait a few days, refine the processes and into the media  announce managerially taken measures.  We abstract from the fact that the resources used in the first round are Eurofunds. If he has  be a quick measure, so it must not be administratively burdensome and should not involve more  as two procedural steps. Checking the accuracy or presentation of true information  carried out ex-post and not continuously. After all, affidavits are used.    If the measure is to be targeted, cesium must not fall into the future  a certain part of the target group. But especially it should be administered in simple language  and in a user-friendly way for the general masses of the population - even those who experience it  they do not have to read the laws. Let's use behavioral approaches.    Today is the time to return to the standard ways of making legislation, to minimize  resortism, share data across the public sector and get  economic aid as quickly as possible to those who need it. Because we only have  very limited time.    Karel Hirman, energy analyst    Now criticize or praise the government for economic policy would  it was unfair. The government has not done politics so far, but it was literally  firefighter and rescuer. I think given that for what  the coalition and the situation in which it has taken responsibility, so far with it  she fit in quite well as much as possible. Evidence of this too  comparison with other countries.    Of course, aid management and access to use could have been better managed  EU funds. But first it requires fundamental systemic as well as personnel changes  in the state administration so that other mechanisms and approaches can be set up, which  will aim at meaningful, transparent and also operational use of resources without  unnecessarily complicated bureaucracy.    So far, the most unnecessary has been the controversy over Sunday's sale and the most questionable  principle: all power hygienists. Hygienists have nothing to determine the framework conditions  business and should not abuse their position for unnecessary bullying  business sector, especially in such difficult times.    The hour of truth for the economic policy of this governing coalition is coming now, at  preparing and approving comprehensive support and simplification measures  business environment. It will be important to assess the success of the government  amendment to the law on the state budget for this year, which must be urgently  developed so that a genuine economic policy can be pursued.    Another key task will be to develop a quality project framework for  use of a special EU fund, which must be used primarily for systemic funding  modernization and restructuring of the economy and employment, at the same time  support for socially positive measures.    In the short term, not only the termination of personnel will be equally important  changes in state-owned enterprises, but also the determination of strategic tasks for their next    development. In this regard, as an energy professional, I have considerable doubts whether the creation  of the notified holding of state heating plants is the "real nut".    A strategically and security-sensitive task, which has been almost discussed in our country so far  does not speak, but is a major issue at EU level and in its key countries such as  Germany and France, the state's entry into changing ownership is sensitive  sectors and enterprises.  In a situation where the coronary crisis has further weakened the entire sectors they have faced last year  serious problems, such as metallurgy, automotive but also energy, you are responsible  the government urgently needs to prepare legislative instruments to enable it to do so effectively  and to emphatically enter into these processes, regardless of the ownership structure of the companies.    Lívia Vašáková, Head of the Economic Analysis Section  Representations of the European Commission in Slovakia    While Slovakia managed the COVID-19 epidemic well after the medical exam  page, economic indicators for the first quarter show sharp  economic downturn. GDP fell by 5.2% and employment by 0.5%, which  Slovakia is one of the most affected countries, such as Italy,  Spain or France. It also dropped significantly in March and April  industrial production and Slovakia was again among the most affected  countries.  All Member States have tried to help their countries since the outbreak of the pandemic  economies. However, the aid was not even. With over 50% of the total state  aid within the EU is strongly dominated by Germany, which has been building for several years  budget surpluses. Most Slovak state aid schemes have only been approved  in last days. Also according to various comparisons of aid intensity, Slovakia gave  support the economy relatively little and the difference compared to other EU countries is visible  mainly in liquidity support (soft loans and state guarantees).    A great opportunity for Slovakia is the recently proposed European assistance in the amount of  EUR 1.85 trillion, of which Slovakia, after approval by the Council and the European Parliament,  will be able to draw about 24 billion. This package should, in addition to the classic EU  funds and agricultural subsidies to support the reforms they may decide  about the curve and the intensity of recovery.    Martin Vlachynsky, INESS    The main mistake is to steer the whole social debate. It is decided whether  the slender manufacturer or that producer will receive the aid  strawberry compotes, whether the carmaker will lay off 500 or 1000 people,  with our eyes wide, we look at the NBS and other institutions, or theirs  the tuned model will show a decrease in GDP of 10.3% or 11.2%. For now  background are the biggest changes in the functioning of advanced economies behind  the last 30 years.    States are in debt at an incredible pace, new social ones are emerging from evening to morning  schemes not for people but for entire industries, the entry of the state into the private sector is being considered  companies, the printing of money has overcome even the darkest moments of the 2008 crisis,  The European Union is preparing to introduce a number of new taxes ...    But the most bizarre thing is that politicians (but also many economists and analysts!) Gradually  they believed that we were not facing a severe crisis, but a new era of incredible prosperity.  Suddenly we are talking about billions for hospitals, new highways, sewers in  all the villages, thousands of rental apartments, I'm just waiting to return  wide gauge railway.    As if suddenly an almost infinite amount of resources fell into the hands of the state. A word  "Investment" in today's debate has completely changed its meaning - it is no longer an expense  with a return, but virtually any expense. Consumption has become an "investment". it  is, of course, nonsense. The crisis cannot be redeemed and it is entirely responsible for these decisions  Europe to pay the lost generation.    I therefore do not consider it fruitful to assess whether this government has poured money quickly or not  slowly, or whether she has prepared request forms with too many parties  or small font. I will evaluate it according to its approach to the essentials  questions that will come in the coming months, whether it will use this time for reforms,  which we have been talking about for decades.    Peter Kažimír, Governor of the NBS    Deferrals of repayments are clearly the best domestic measure. It was  it's simple, understandable and fast.    It is a pity that this principle has not always and everywhere been applied. Trying to help  Addressed is fine, but too much "jeweling" of economic measures  precious time has been lost.    Due to the seriousness of the situation, it was better to burn it a bit at the beginning and correct it  later. It is no shame to change things.    The unfortunate plot around the bank levy is pointlessly delaying the introduction  guarantee schemes. Without them, we cannot secure credit to our economy and without it  smooth lending will not recover.    Finally, briefly on the measures. Yes, they should be simple, understandable  and feasible. And it would be very helpful if these measures were also the result  transparent process. The situation is too serious to make decisions  affecting the lives of millions of people arose behind closed doors of any kind  crisis staffs.    Ivana Molnárová, director of Profesia.sk    I consider compensation for wage costs to be both a positive and a negative measure.  The only positive thing, however, is that the state provided these contributions to entrepreneurs.    However, everything else about this measure was already unintended, or  only communication unmanageable. These posts came with great  delays that have sent many employers to secondary employment  insolvency.    The problem is also that the state did not think of everyone and everyone  this aid scheme was unavailable to many. If we were out of it  should teach, so clearly the state should have a mastered mechanism  standardized communication of such measures through methodological  guidelines and the like.    The second room for improvement is the ability of competent institutions to act, which  should ensure the prompt delivery and implementation of these measures.    Miroslav Beblavý, economist, former chairman of the Spolu party    The best economic measure was to stop the corona in its infancy.  A short-term halt to the economy is nothing compared to what we would  experienced if the corona spread in the American way. Therefore drastic  and immediate action in March - closure of establishments, schools and borders  and I consider wearing masks to be the best economic measure so far.  This no longer applies to the next step.    The biggest mistake is the misunderstanding on the part of most state officials that  governance in times of such a crisis is quite different from opposition  the policy to which they are accustomed. We have seen preference for most of them  press releases, dramatic statements and even media narcissism before hard work on  saving the economy.    It is easy to declare First Aid for 1.5 billion euros, but it is difficult to make it a reality.  Already at the end of March, several economists - for example, Ivan Mikloš and I pointed out - that  aid must be simple, accessible and distributed as far as possible over existing ones  institutions and, if possible, instruments. We have even designed specific tools. The government went    through new and administratively demanding tools, many of which, of course,  mismanaged.    Maroš Ovčarik, specialist in personal finance and investment,  Partners Investments    One of the best measures that has been implemented during  coronation crisis, was an agreement with banks to defer loan repayments. Here is  important not only the idea itself, which helped to breathe financially  to date, more than 160,000 people and 9,000 companies.  The implementation was essential, ie the simplicity and speed of the equipment.    Probably the least successful was the introduction of government measures in terms of speed  and ease of handling for specific applicants.    This crisis has fully shown that if we want our state to be better governed and to be  ready to respond flexibly even in the event of such mega-crises, we must  move in digitization. This will allow us to get important data faster, even if  today the state has it at its disposal, but so far it cannot work with them effectively. In this regard,  he could learn from the private sector.    Libor Melioris, economist    Terms such as "social contract" or "implicit agreement" are for  of the common man incomprehensible. Any crisis, whether political or  economic, is a rare period during which it materializes  and redefines the citizen-state relationship.    The Munich Agreement in 1938 with the citizens of Czechoslovakia  materialized in the form of summons orders in the context of general mobilization.  The epidemiological crisis of 2020 gave our establishment a chance to materialize  citizens through economic aid.    Overall, it turned out poorly. The most visible measure - direct aid, turned out  most impoverished.  The average monthly support per job is less than 300 euros.  Especially schizophrenic  the regime treats self-employed persons. In good times, he tolerates not paying taxes,  but in bad times  pretends that tradesmen do not exist.    What was to be done was prophetically described by Konstantin Chikovsky in March. How is that  turned out and what to do with it now, the best described by Ivan Bosňák in the recent  commentary.    Pavol Suďa, chief analyst of the Finstat.sk portal    I assume that they should have the biggest macroeconomic effect  measures such as deferral of loan and lease payments, state subsidy for  rent, contributions to employees' salaries, deferral, etc.  remission of social security premiums, deferral of payment  advances on income tax, deferral of tax return or  temporary protection of entrepreneurs and tenants.    However, we will find out what real and significant positive impact they will have in the final  up to a longer time interval. Some entrepreneurs have announced that they are supportive  schemes are too complex. Others are afraid to use them for potential future risks,  whom they fear.  For example, the courts have provided temporary protection from creditors since mid-May only  about 170 businesses, employing about five thousand  workers. Up to ten percent of them gave up quickly, especially for the negative  reaction of creditors.    Intuitively, it seems to me that the effect of these measures will not be dramatic. That the key will be  how our economy will cope with the slump in foreign demand, which is fast    recovery is questionable. I don't see any ideas or suggestions in this area yet  they significantly helped the local employers, who were essentially dependent on exports.    Zdenko Štefanides, chief analyst of VUB banka    In my view, the best measures after the outbreak of the coronary crisis were  those that were quick and helped the largest group of people affected  crisis. At the onset of coronacoma, I would welcome her to bridge it  immediate lump sum money transfer to all households, not only  directly affected by the crisis. It didn't happen, and that's why it was  the important speed of alternative forms of assistance, since the enlargement of the PRC,  introduction of kurarbeit or deferral of payments of levies or tax advances, but also installments  loans.    The latter measure has proved to be extremely effective and rapid  assistance reached by more than 160,000 households. Banks so at the beginning of this crisis  they have helped to overcome difficult times for perhaps more people than state aid.    That is also why it seems unfair to me that the special bank levy has still not been canceled. After  other central bank arguments in the Financial Stability Report  perhaps no one doubts this levy for the economy. Sure, as an employee of one  from the banks I am in a conflict of interest in this topic. But in a situation where he dropped the bank levy  most banks to the losses before the onset of the coronary crisis, I can not look at it differently  as a fine for the very sector that has helped those affected in this crisis  households and businesses perhaps the most.    Renáta Bláhová, tax advisor and auditor at BMB  Partners, member of the advisory team of the Minister of Finance since April  Heger    The most important measure from the country 's point of view was to ensure sufficient liquidity for  the proper functioning of the state right at the beginning of the pandemic, as it threatened not to pay    officials. We have succeeded and today we have the opposite challenge, to prepare  reforms so that the generous several billion in assistance from the EC is  used for sensible reforms of our country. The chance for change is real  great.    From the point of view of the business entities that are most at risk  pandemic, postponement of assistance was the fastest  direct taxes and social security contributions.    Direct financial assistance through the labor sector was slower for objective reasons,  to this day it has many critics because it is targeted and the limits on posts are set  too low. Here, the shortcomings could be corrected by already starting the schemes  pomoci sa predĺžia, ak bude treba aj do konca roka, a limity na príspevky zvýšia.  Adresnosť by som určite neodporúčala meniť, ako odstrašujúci príklad by mohli byť  naši českí susedia, kde sa tzv. helicopter money stali lákadlom pre podvodníkov. Na  Slovensku sme to vcelku rozumne predvídali.    Na čo som osobne hrdá, že sa mi v poradenskom tíme ministra financií podarilo  rozbehnúť? Spomeniem heslovite len vybrané oblasti, bez nasadenia celého tímu  MF a medzirezortnej komunikácie by to však nebolo možné:  Index daňovej spoľahlivosti: väčšia transparentnosť kritérií a zlepšenie výhod pre  spoľahlivých daňovníkov.  Pravidlá CFC pre fyzické osoby s cieľom zamedziť zneužívaniu schránkových  spoločností vjurisdikciách snízkym daňovým zaťažením. Tieto pravidlá boli vr.  2017 na poslednú chvíľu v parlamente stiahnuté a zavedené z nepochopiteľných  dôvodov len pre právnické osoby. Pre občerstvenie pamäti prikladám aj  ilustratívny link.  Prísnejší trestný zákon pre oblasť krátenia priamych daní s cieľom zamedziť  špekulatívnemu zneužívaniu u agresívnych daňových subjektov (navrhuje sa  vypustiť ustanovenie o účinnej ľútosti zavedené vroku 2013). Aj tu pre ozrejmenie  súvislostí prikladám link.  Dlhodobý systém kurzarbeit, o ktorom pred rokom mohli firmy len snívať.    Za najdôležitejšie považujem v najbližšej dobe znormalizovať legislatívny proces tak,  aby vláda mohla dodržať predvolebný sľub o predvídateľnej legislatíve. To znamená  schvaľovať dôležité zmeny len jedenkrát za rok a to k 1. januáru, ideálne s jasným  úplným znením zákona a úplne zakázať prílepky.    Ján Kovalčík, dopravný analytik, INEKO    Za ekonomicky i sociálne najlepšie opatrenie v koronakríze  považujem využitie nečerpaných eurofondov na odvrátenie  prepúšťania. Príspevky na udržanie zamestnanosti doslova zachránili  prácu desiatkam tisíc ľudí. A spolu pomohli firmám pokryť podstatnú  časť nákladov na stovky tisíc pracovných miest.    Áno, príspevky nenabehli expresne. Ale s ohľadom na biedny stav elektronizácie  procesov na úradoch stále veľmi dobre. Fakt, že predtým dlhé roky pri informatizácii  šlo viac o lukratívne zákazky než o lepšie služby, teraz nik rýchlo nenapraví.  Spätný pohľad ukazuje, že príspevky na udržanie pracovných miest mohli byť aj  vyššie. No to sa ľahko komentuje s tým, čo vieme dnes, keď sa ekonomika rýchlo  otvára a okruh potenciálnych žiadateľov sa zužuje. V čase prijímania rozhodnutí  v marci či apríli by som významne štedrejšiu podporu asi považoval za rozpočtové  kaskadérstvo.    Druhým významným a široko využívaným opatrením sú odklady splácania úverov.  S ohľadom na nízku finančnú gramotnosť väčšiny populácie však odporúčam aktívne  vysvetľovať, že úroky nabiehajú aj teraz. Preto čím dlhší odklad dlžníci využijú, o to  viac a dlhšie budú zostávajúci úver splácať.    Z opatrení, ktoré sú teraz pre ekonomiku dôležité a dlho viazli, považujem za  najdôležitejšie preklenovacie úvery podnikateľom. Slovensko má banky v dobrej  kondícii a očakával by som, že viac podržia životaschopných podnikateľov v ťažkom  období. Aj pred definitívnym schválením štátnych garančných schém. Teraz banky  mohli a môžu ukázať, či sú partnermi aj do zlého počasia.    Martin Kahanec, ekonóm, špecialista na trh práce, zakladateľ  Central European Labour Studies Institute (CELSI)    Ekonomické opatrenia, ktoré sa urobili, sú v princípe správne  a pomáhajú svojim cieľovým skupinám. Rezervy boli najmä  v rýchlosti ich implementácie, administratívnej záťaži na žiadateľov,  a nedostatočnej výške podpory pri niektorých opatreniach.    Niekedy aj vo svojej podstate dobré opatrenia trpeli chybami  v detailoch pri ich implementácii. Napríklad keď sa zamestnávatelia zdráhali  požiadať o opatrenia prvej pomoci z dôvodu nejasností okolo ich účtovania  a zdaňovania.    Zatiaľ sa nepodarilo implementovať investičné opatrenia pomoci mestám a obciam.  Verím ale, že sa potenciál tisícov starostov a primátorov, ktorí majú dobrý prehľad,  v ktorých projektoch je v ich obciach a mestách najvyššia pridaná hodnota, podarí  urgentne realizovať.  Aj keď epidemiologické opatrenia na zabránenie druhej vlny pandémie po otvorení  ekonomiky nepatria priamo medzi ekonomické opatrenia, ich dosah na ekonomiku  môže byť väčší ako celá doterajšia pomoc dokopy.    To, že počty prípadov COVID-19 po otvorení narástli, nie je prekvapujúce, a samo  osebe ma to v tejto miere ani neznepokojuje. Veľmi ma však znepokojuje, či sme na  zvýšené riziko druhej vlny dostatočne pripravení. Druhý lockdown by bol pre  ekonomiku a spoločnosť devastačný.    Bez premysleného systému testovania, trasovania a izolovania prípadov nám hrozí  vznik veľkých ohnísk pandémie bez toho, aby sme ich dostatočne rýchlo zachytili  a eliminovali. Pomohlo by systematické testovanie ľudí v najrizikovejších, geograficky  rozptýlených povolaniach s vysokou frekvenciou kontaktov: kvôli ich zdraviu, ale aj  kvôli tomu, že by nám ako lakmusové papieriky pomáhali nachádzať ohniská nákazy.  Systematické plošné testovanie odpadových vôd a všetkých odobraných krvných    vzoriek na prítomnosť koronavírusu, respektíve protilátok na koronavírus, by nám  tiež pomohlo efektívne identifikovať zárodky takýchto ohnísk.    Andrej Svorenčík, ekonóm na Univerzite  v Mannheime    Na Slovensku si za bežných okolností nevieme efektívne riadiť veci  verejné. Preto by sa mohlo zdať, že v krízovej situácií, keď sa štát  potrebuje venovať len veľmi limitovanému okruhu úloh, tak by v nich  mohol dosiahnuť nadpriemerné výsledky. Tými kľúčovými úlohami štátu počas  pandémie boli a naďalej sú zamedziť šíreniu nákazy a stlmiť dopady na  hospodárstvo.    V prvej úlohe Slovensko síce uspelo, ale z formálnej stránky je tam viacero otáznikov  — napríklad legitimita konzília epidemiológov a pod. V druhej úlohe je výkon  nateraz nedostatočný, hlavne na úrovni deravého pokrytia a pomalej  implementácie Prvej pomoci zamestnancom, podnikateľom a SZČO zo strany  Ministerstva práce, sociálnych vecí a rodiny. Prikazovať a zakazovať za  mimoriadnych okolností nám ide, ale komplexnejšie činnosti sú nateraz, žiaľ, stále  ešte za hranicami našich možností.    Ak máte pripomienku alebo ste našlichybu, napíšte prosím na