Ferdinando Giugliano

Ferdinando Giugliano is the FT's global economy news editor, based in London. Ferdinando holds a PhD in economics from Oxford University, where he was also a lecturer, and has worked as a consultant for the Bank of Italy, the Economist Intelligence Unit and Oxera. He joined the FT in 2011 as a leader writer.

Ferdinando Giugliano

The importance of small and medium-sized enterprises as engines of job creation is a well-established economic fact. In countries such as Italy and Spain, SMEs account for 70-80 per cent of the workforce, and for a similar proportion of all newly created jobs.

Much less is known, however, about which kinds of SMEs are better at boosting employment. The SMEs universe is varied, but distinguishing between them is essential for governments to direct their economic policies in an effective way.

A study published this week by the Organisation of Economic Cooperation and Development analyses in painstaking detail a database including SMEs from 18 countries over ten years. Its main finding is that among all SMEs, it is the youngest companies that contribute the most to boosting employment. Read more

Ferdinando Giugliano

 

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Ferdinando Giugliano

With the eurozone facing the threat of a prolonged period of “low-flation”, the European Central Bank has been urged to stretch its monetary policy toolkit further and deploy more unconventional measures. One widely flagged option would be to cut the interest rate that banks receive for parking their money with the central bank to below its current zero level. Frankfurt would then replicate an experiment first tried by Denmark’s central bank, which in 2012 cut its deposit rate to -0.20 per cent.

As of Thursday, however, Denmark is no longer a valid comparison. The Danish National Bank has announced that, with effect from Friday, it will raise its deposit rate by 15 basis points to 0.05 per cent (it had already increased it to -0.10 per cent in January). Meanwhile, the central bankers in Copenhagen left the lending and the discount rate unchanged at 0.2 and 0 per cent respectively. Read more