Found 1323 article(s) in category 'Economic Growth'

Rethinking Macroeconomic Policy: International Economy Issues

Rethinking Macroeconomic Policy: International Economy Issues. Gita Gopinath, October 10, 2017, Paper, “In this paper I make the following ten remarks on the topics of exchange rate policy, capital flow management, protectionism, and global cooperation: 1) The gains to exchange rate flexibility are worse than you think; 2) The ‘Trilemma’ lives on; 3) The U.S. dollar exchange rate drives global trade prices and volumes; 4) Gross capital flows matter as much as net flows, and global banks have internationalized U.S. monetary policy. 5) Emerging markets tilt away from foreign currency to local currency debt reduces their exposure to global risk factors; 6) Low interest rate environments can lead to misallocation of resources and lower productivity; 7) The relationship between global imbalances, reserve accumulation, and currency manipulation is not well identified. 8) Uniform border taxes are not neutral; 9) Trade is not the main driver of earnings inequality, but at the same time policy has failed to address its redistributive consequences. 10) Global coordination of financial regulation is essential alongside country level macroprudential polices. Reserve accumulation and currency swap lines do not substitute for the lender of last resort role of the IMF.” Link

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Directions for International Tax Reform:, Hearing Before the U.S. Senate Committee on Finance, Hearing on International Tax Reform

Directions for International Tax Reform:, Hearing Before the U.S. Senate Committee on Finance, Hearing on International Tax Reform. Stephen Shay, October 3, 2017, Paper, “Testimony before the U.S. Senate Committee on Finance Hearing on International Tax Reform, October 3, 2017. Objectives for Tax Reform. Tax reform should maintain or enhance our tax system’s current level of progressivity in distributing tax burdens and benefits. The most significant social welfare fact today is that the income of middle and lower income workers has stagnated in recent decades and a disproportionate share of income growth has accrued to those with highest incomes—the top 1%. While we have recovered from the recession and middle and lower income workers have made some gains, the disparity between high-income and middle- and lower-income has grown substantially and income mobility is more constrained than for prior generations. The taxation of cross-border income of U.S. MNCs should be analyzed under the same fairness standards that apply to any other income.Link

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Green Industrial Policy: Accelerating Structural Change towards Wealthy Green Economies

Green Industrial Policy: Accelerating Structural Change towards Wealthy Green Economies. Dani Rodrik, 2017, Paper, “There are two major reasons for governments and societies to accelerate structural change in their economies and proactively shape its direction. First, there is the challenge of creating wealth. Structural change, that is, the reallocation of capital and labour from low- to high-productivity activities, is a key driver of productivity growth and higher incomes. This is particularly important for developing countries where incomes are low and poverty is pervasive. According to the latest available estimates, 767 million people lived on less than $1.90 a day, and 1.9 billion people in the developing world still had less than US $ 3.10 a day in 20131 – a clear indication that the current structural composition of national economies does not provide a sufficient number of productive jobs.Link

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Urban transformations and the future of cities

Urban transformations and the future of cities. Edward Glaeser, 2017, Book Chapter, “In the last few decades, many global cities and towns have experienced unprecedented economic, social, and spatial structural change. Today, we find ourselves at the juncture between entering a post-urban and a post-political world, both presenting new challenges to our metropolitan regions, municipalities, and cities. Many megacities, declining regions and towns are experiencing an increase in the number of complex problems regarding internal relationships, governance, and external connections. In particular, a growing disparity exists between citizens that are socially excluded within declining physical and economic realms and those situated in thriving geographic areas. This book conveys how forces of structural change shape the urban landscape.Link

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The Social Implications of Sugar: Living Costs, Real Incomes and Inequality in Jamaica c1774

The Social Implications of Sugar: Living Costs, Real Incomes and Inequality in Jamaica c1774. Jeffery Williamson, October 2017, Paper, “This paper provides the first quantitative assessment of Jamaican standards of living and income inequality around 1774. To this purpose we compute welfare ratios for a range of occupations and build a social table. We find that the slave colony had extremely high living costs, which rose steeply during the American War of Independence, and low standards of living, particularly for its enslaved population. Our results also show that due to its extreme poverty surrounding extreme wealth Jamaica was the most unequal place in the pre-modern world. Furthermore, all of these characteristics applied to the free population alone.Link

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The Productivity Slowdown and the Declining Labor Share: A Neoclassical Exploration

The Productivity Slowdown and the Declining Labor Share: A Neoclassical Exploration. Elhanan Helpman, September 2017, Paper, “We explore the possibility that a global productivity slowdown is responsible for the widespread decline in the labor share of national income. In a neoclassical growth model with endogenous human capital accumulation a la Ben Porath (1967) and capital-skill complementarity a la Grossman et al. (2017), the steady-state labor share is positively correlated with the rates of capital-augmenting and labor-augmenting technological progress. We calibrate the key parameters describing the balanced growth path to U.S. data for the early postwar period and find that a one percentage point slowdown in the growth rate of per capita income can account for between one half and all of the observed decline in the U.S. labor share.Link

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The Tax Reform Agenda

The Tax Reform Agenda. Martin Feldstein, September 26, 2017, Opinion, “The good news about our tax system is that, over the years, our tax rules have been getting better. Those who write the tax laws have been listening to the advice of economists — or at least what they have been doing for other reasons is in line with what economists have advised.  High tax rates that distort incentives and create large deadweight losses have been reduced: the top marginal rate of the personal income tax has come down from 92 percent to 40 percent now, and the corporate tax rate has come down from 50 percent to 35 percent. It has been possible to lower rates in that way by eliminating a variety of tax loopholes, i.e., tax accounting rules that allow taxable income to be less than economic income. So we have a less distorting — a more efficient — tax system than we did in the past.Link

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The Fear Factor in Today’s Interest Rates

The Fear Factor in Today’s Interest Rates. Carmen Reinhart, September 23, 2017, Opinion, “Atlantic-hugging policymakers and pundits, buffered by a continent and a large ocean, may not fully appreciate the significant effect on global financial markets that the threat posed by North Korea has had in recent months. But competition for safe assets has clearly heated up.Link

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Is Larry Summers A Fan Of Nominal GDP Level Targeting?

Is Larry Summers A Fan Of Nominal GDP Level Targeting? Lawrence Summers, September 19, 2017, Audio, “You are going to have to listen to my podcast with him to find out the answer. Here is a hint: We spent a portion of the show talking about NGDP level targeting (NGDPLT) and what it would take to actually get it implemented it at the Federal Reserve. So listen to the show to find out Larry’s thoughts on NGDPLT as well as his views on secular stagnation, Fed policy since the crisis, and macroeconomic policymaking in real time. It was a fun interview.Link

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Larry Summers on Macroeconomics, Mentorship, and Avoiding Complacency | Conversations with Tyler

Larry Summers on Macroeconomics, Mentorship, and Avoiding Complacency: Conversations with Tyler. Lawrence Summers, September 2017, Video, “The economist, President Emeritus at Harvard University, and former Treasury Secretary joins Tyler to discuss innovation in higher education, Herman Melville, the Fed, Mexico, Russia, China, the Larry Summers production function, philanthropy and Larry’s table tennis adventure in the summer Jewish Olympics.Link

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