Huge step by European Central Bank to abate crisis; China boosts economy with big infra plan; An ad agency crowdsources employee morale; Kaushik Basu on World Bank goals

1 Huge step by European Central Bank to abate crisis (The New York Times) The European Central Bank on Thursday took its most ambitious step yet toward easing the euro zone crisis, throwing its unlimited financial clout behind an effort to protect Spain and Italy from financial collapse. Mario Draghi, the president of the central bank, won nearly unanimous support from the bank’s board to buy vast amounts of government bonds, a move that would relieve investor pressure on troubled countries but also effectively spread responsibility for repaying national debts to the euro zone countries as a group.

The decision propels political leaders farther down the uncertain and winding road toward a Europe with centralized control over government spending and economic policy, instead of a collection of nation states that sometimes seem to share little more than a currency and a slumping regional economy. Mr. Draghi demonstrated once again that he may be Europe’s most powerful leader, perhaps the only one capable of brokering an accord among politicians whose national concerns and mistrust of one another have allowed the crisis to boil for two and a half years.

But there is a risk once again that monetary policy is moving faster than political leaders are able to create the institutions, such as a European bank supervisor, needed to ensure the survival of the common currency. The bond-buying plan immediately reduced the financial pressure that had been building on Spain and Italy, even though those countries have not sought protection. The effective interest rate on Spanish 10-year bonds fell below 6% for the first time since May, and the corresponding Italian bond fell below 5% for the first time since April. American and European stock indexes also rose.

2 China boosts economy with big infra plan (The Guardian) China has announced a trillion yuan (£99bn) of infrastructure projects in a bid to revive economic growth, raising hopes that the world's second largest economy will drive a recovery across the globe. Over the past two days, Beijing has announced plans to build highways, waterways, urban rail projects and waste water treatment plants, estimated to cost more than 1tn yuan, some 2% of China's total economy.

The Chinese government did not describe the investments as a stimulus package, but analysts said the approvals signalled a shift in policy. Zhang Zhiwei, economist at Nomura, said: "Apart from the large sizes of the projects, the announcements were all made in two days, which is very intense. It signals a change in policy stance, which is now much more proactive."

He said the projects are likely to begin in the coming months and the impact could be reflected in fourth quarter GDP. Chinese growth slowed to 7.6% in the second quarter, its lowest in three years, and grim economic data out in the past few weeks suggests the slowdown could be even steeper in the third quarter.

3 An ad agency crowdsources employee morale (The New York Times) An advertising agency that has been crowdsourcing ideas from its employees is at it again, adopting additional suggestions from staff members on how to improve operations and, by extension, morale. The senior managers of Kirshenbaum Bond Senecal & Partners, part of MDC Partners, have chosen two ideas from around 30 that were submitted in a crowdsourcing competition in July by more than 70 employees.

One of the ideas involves turning over to employees about 4,500 square feet of space on the sixth floor of the agency’s New York headquarters, which they can use, individually and in groups, for personal, creative projects. The space will also be opened to artists and other people who are not on the Kirshenbaum Bond Senecal payroll for exhibits, discussions and potential collaborative work sessions with staff members.

The idea, which won a $5,000 grand prize for two young employees, is called the Hyde Experiment, implying that the agency’s Mr. Hydes will work on their projects when not busy with their Dr. Jekyll regular jobs.

The second idea, which won a $500 runner-up prize for seven employees, is called Gettin’ Up, after a slang term to denote success or recognition. It involves creating a gamelike rewards system in which staff members — and, later, the agency’s clients — will be able to acknowledge employees who go the extra mile. The rewards will come in the form of points that can be exchanged for small cash bonuses. Such efforts to solicit ideas from employees beyond the standard suggestion boxes are indicative of attempts by Madison Avenue leaders to pay more attention to their work forces.

4 Kaushik Basu on World Bank goals (The Wall Street Journal) The World Bank’s new chief economist, Kaushik Basu, said reaching out to people who live in extreme poverty is a top priority for him in his new role. “People who live in chronic deprivation rarely command our attention. Yet, to reach out to them is the urgent problem of our times. Success on this requires passion, but also and in equal measure, analysis and research. I will try my best to act on both fronts,” said Mr. Basu in an email.

Mr. Basu was named as the World Bank’s top economist earlier this week. He has spent the past three years in New Delhi as the Indian government’s chief economic adviser. In an interview Mr. Basu, who made his name in academia, said his time working in policy in India was an experience that will be valuable for him in Washington.