Found 1693 article(s) in category 'Q1: Economic Growth'

It’s tempting for the Fed to move slowly. That would be a grave error.

It’s tempting for the Fed to move slowly. That would be a grave error. Lawrence Summers, June 4, 2019, Opinion, “The Federal Reserve will over the next several months make monetary policy decisions that are as consequential as any it has made since the financial crisis and Great Recession of 2007-2008. The temptation in a highly uncertain and politicized environment will be to move cautiously. Yet this would be a grave error in the current context, where a recession could be catastrophic and the odds of one beginning in the next year, while still less than 50-50, now appear significant and increasing.Link

Tags: , , ,

Trump Is Slowing US Economic Growth

Trump Is Slowing US Economic Growth. Robert Barro, June 4, 2019, Opinion, “The current state of US macroeconomic policymaking across four key areas does not bode well. Although the 2017 tax legislation has done its job in promoting faster growth, rising trade tensions, persistent regulatory burdens, and a lack of investment in infrastructure all threaten to limit the US economy’s potential.Link

Tags: , , , ,

Urban management in the 21st century Ten insights from Professor Ed Glaeser

Urban management in the 21st century Ten insights from Professor Ed Glaeser. Edward Glaeser, June 2019, Paper, “In August 2018, CDE hosted Professor Ed Glaeser, the world’s leading urban economist and the Fred and Eleanor Glimp Professor of Economics in the Faculty of Arts and Sciences at Harvard University. He shared his critical insights based on vast experience during a series of seminars and engagements with leaders, policy makers and officials from the Johannesburg and Cape Town metro governments. To help improve the quality of South Africa’s discussion about cities’ vital role in growth and development, we are publishing here, in collaboration with Professor Glaeser, a summary of the key lessons that we drew from the questions he asked and the talks he gave.Link

Tags: , , , ,

What Marco Rubio gets right — and wrong — about the decline of American investment

What Marco Rubio gets right — and wrong — about the decline of American investment. Lawrence Summers, May 31, 2019, Opinion, “Sen. Marco Rubio (R-Fla.) recently released a thoughtful report highlighting a substantial issue in the American economy: the steady decline of American private investment. The trend, Rubio contends, is the result of shareholder capitalism and corporate short-termism. In other words, business decision making has shifted toward “delivering returns quickly and predictably to investors, rather than building long-term capabilities through investment and production,” as he writes in his analysis.Link

Tags: , ,

David Deming on Education and Social Mobility, the Labor Markets of the Future, and Solutions for Income Inequality

David Deming on Education and Social Mobility, the Labor Markets of the Future, and Solutions for Income Inequality May 2019. GrowthPolicy’s Devjani Roy interviewed David Deming, Professor of Public Policy, Education, and Economics at Harvard Kennedy School and Harvard Graduate School of Education and Director of the Harvard Inequality and Social Policy Program, on higher […]

Tags: , ,

Parallel Play: Startups, Nascent Markets, and the Effective Design of a Business Model

Parallel Play: Startups, Nascent Markets, and the Effective Design of a Business Model. Rory McDonald, 2019, Paper, “Prior research advances several explanations for entrepreneurial success in nascent markets but leaves a key imperative unexplored: the business model. By studying five ventures in the same nascent market, we develop a novel theoretical framework for understanding how entrepreneurs effectively design business models: parallel play. Similar to parallel play by preschoolers, entrepreneurs engaged in parallel play interweave action, cognition, and timing to accelerate learning about a novel world. Specifically, they (1) borrow from peers and focus on established substitutes, (2) test assumptions, then commit to a broad business-model template, and (3) pause before elaborating the activity system. The insights from our framework contribute to research on optimal distinctiveness, and to the learning and evolutionary-adjustment literature on search. More broadly, we blend organization theory with a fresh theoretical lens—business-model processes—to highlight how organizations actually work and create value.Link

Tags: , , , , ,

The Federal Reserve’s Current Framework for Monetary Policy:  A Review and Assessment 

The Federal Reserve’s Current Framework for Monetary Policy: A Review and Assessment. James Stock, May 24, 2019, Paper, “The Humphrey-Hawkins Act of 1978 instructs the Federal Reserve Board to “promote effectively the goals of maximum employment, stable prices, and moderate long‐term interest rates.” The methods by which this dual mandate of maximum employment and price stability is to be accomplished are left to the Fed. Those methods have evolved over time as the Fed and economists learned more about the theory and practice of monetary policy (Fuhrer et. al. (2018)).Link

Tags: , , ,

The Real Cost of Trump’s Tariffs

The Real Cost of Trump’s Tariffs. Jeffrey Frankel, May 23, 2019, Opinion, “Whereas winners tend to outnumber losers when trade is liberalized, raising tariffs normally has the opposite result. US President Donald Trump appears to have engineered a spectacular example of this: his trade war with China has hurt almost every segment of the US economy, and created very few winners.Link

Tags: , , , ,

Going Digital: Implications for Firm Value and Performance

Going Digital: Implications for Firm Value and Performance. Suraj Srinivasan, May 19, 2019, Paper, “We examine the firm value and performance implications of the growing trend of non-technology (non-tech) companies adopting digital technologies such as artificial intelligence, big data, cloud computing, machine learning. For the entire universe of US public listed firms, we identify companies that are going digital using textual analysis of disclosure of digital-related words in corporate financial reports and conference calls. We first show that digital adoption by non-tech firms has dramatically grown in recent years. Non-tech digital adopters exhibit greater stock price co-movement with technology companies than with their industry peers, suggesting that the digital activities are making them similar to tech firms. The digital adopters hold more cash and are larger, younger, and less CapEx-intensive. Digital adoption is associated with higher valuation — market-to-book ratio is higher by 7-21% than industry peers – and is higher for firms that are younger, more CapEx-intensive, exhibit higher sales growth and are in industries where digital adoption is prevalent.Link

Tags: , ,