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

Tags: , , , , ,

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

Tags: , , , , ,

Introduction to the Symposium: Attracting and benefitting from Quality FDI. Laura Alfaro, September 19, 2017, Paper, “The topic of this Symposium is not only of utmost relevance for the academic and policy community, it is also very timely. The last two meetings of G20 leaders in Hamburg, Germany, and Chengdu, China, highlighted the importance of financing and other support mechanisms in implementing the global goals for sustainable development. The 2015 United Nations Third International Conference on Financing for Development, held in Addis Ababa, resulted in the groundbreaking agreement, the so-called Addis Ababa Action Agenda, containing bold measures to overhaul global finance practices and generate investments for tackling a range of economic, social and environmental challenges. Indeed, the cornerstone for the success of the new sustainable development agenda, which will be driven by the implementation of 17 Sustainable Development Goals (SDGs), is financing and investment.Link

Tags: , , ,

Should You Agitate, Innovate, or Orchestrate? Julie Battilana, September 18, 2017, Opinion, “When Marie Trellu-Kane observed increased fragmentation across social and economic lines in France, and increasing youth unemployment, she could not help but respond. In 1994, along with Lisbeth Shepherd and Anne-Claire Pache, she cofounded Unis-Cité, a nonprofit that launched France’s first youth service program, modeled after City Year in the United States. Still the president of Unis-Cité in 2017, Trellu-Kane recalled, “We were 23 [years old] at the time, so we created the organization that we wished would have existed to satisfy our own desires to act on the problems of exclusion and inequality.Link

Tags: , , ,

Why Competiition in the Politics Industry is Failing America. Michael Porter, September 2017, Book, “Many Americans are disgusted and concerned about the dysfunction and abysmal results from Washington, D.C., and so are we. However, this paper is not about adding to the depressing national dialog about politics, but about how to change the system by taking action that will work.Link

Tags: , , , , ,

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

Tags: , ,

Mihir Desai on “The Wisdom of Finance”. Mihir Desai, September 12, 2017, Video, “In 1688, essayist Josef de la Vega described finance as both “the fairest and most deceitful business…the noblest and the most infamous in the world, the finest and most vulgar on earth.” The characterization of finance as deceitful, infamous and vulgar still rings true today – particularly in the wake of the 2008 financial crisis. But, what happened to the fairest noblest, and finest profession that de la Vega saw? De la Vega hit on an essential truth that has been forgotten: finance can be just as principled, life-affirming and worthy as it can be fraught with questionable practices. Today, finance is shrouded in mystery for outsiders, while many insiders are uneasy with the disrepute of their profession. How can finance become more accessible and also recover its nobility?Link

Tags: , , ,

How aging, inequality and China make the U.S. government likely to get larger. Lawrence Summers, September 12, 2017, Opinion, “Speaking at an event organized by Robert Greenstein, president of the Center for Budget and Policy Priorities, I argued last week that unless our values have changed profoundly in an anti-government direction, the balance of pressures from economic change will lead to an expansion of the federal budget relative to gross domestic product. This was also the conclusion of a paper released by Paul Van de Water of the center. Excellent summaries were provided by Al Hunt and David Leonhardt.” Link

Tags: , , , ,

Donald Trump’s 3% growth plan is only for the 1%. Kenneth Rogoff, September 11, 2017, Opinion, “Donald Trump has boasted that his policies will produce sustained 3%-4% growth for many years to come. His prediction flies in the face of the judgment of many professional forecasters, including on Wall Street and at the Federal Reserve, who expect that the US will be lucky to achieve even 2% growth.Link

Tags: , , , ,

Popular Acceptance of Inequality due to Innate Brute Luck and Support for Classical Benefit-Based Taxation. Matthew Weinzierl, September 9, 2017, Paper, “U.S. survey respondents’ views on distributive justice differ in two specific, related ways from what is conventionally assumed in modern optimal tax research. When expressing their preferences over allocations in stylized, hypothetical scenarios meant to isolate key features of the tax problem, a large share of respondents resist the full equalization of unequal outcomes due to innate brute luck that standard analyses recommend. A similar share prefer a classical benefit-based logic for taxes over the conventional logic of diminishing marginal social welfare. Moreover, these two views are linked: respondents who more strongly resist equalization are more likely to prefer the classical benefit-based principle. Though the Amazon Mechanical Turk survey population is not a representative sample of the U.S. population, robustness of these results across demographic traits and political views suggests that a large share of the American public holds views inconsistent with standard welfarist objectives.Link

Tags: , , , , , , , , ,