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

Explaining Inflation Inertia

Explaining Inflation Inertia. Carmen Reinhart, May 6, 2019, Opinion, “Despite central bankers’ concerted efforts, credible price-stability targets have proved elusive in countries like Argentina, where inflation is soaring, and Japan, which can’t shake the specter of deflation. What can governments do to influence inflation expectations when central banks’ policies prove insufficient to the task?Link

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A study of more than 250 platforms a reveal why most fail

A study of more than 250 platforms a reveal why most fail. David Yoffie, May 2019, Paper, “Platforms have become one of the most important business models of the 21st century. In our newly-published book, we divide all platforms into two types: Innovation platforms enable third-party firms to add complementary products and services to a core product or technology. Prominent examples include Google Android and Apple iPhone operating systems as well as Amazon Web Services. The other type, transaction platforms, enable the exchange of information, goods, or services. Examples include Amazon Marketplace, Airbnb, or Uber.Link

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An economist explains what happens if there’s another financial crisis

An economist explains what happens if there’s another financial crisis. Kenneth Rogoff, April 30, 2019, Opinion, “The financial crisis of 2008 may have started in the US banking sector but it went on to unleash the deepest global recession since the Great Depression. The year 2009 became the first on record where global GDP contracted in real terms and the lost growth resulting from the crisis and ensuing recession has been estimated at over $10 trillion (more than one-sixth of global GDP in 2008).” Link

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My Best Growth Forecast Ever

My Best Growth Forecast Ever. Robert Barro, April 29, 2019, Opinion, “The Trump administration’s tax reform of 2017, which took effect in 2018, was viewed prospectively, and now retrospectively, as a contributor to US economic growth. But there was – and remains – a great deal of controversy over the size of the macroeconomic effects of the tax changes.Link

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The Impact of Exchange Rate Regimes on Economic Growth with Continuous Classification of de facto Regimes

The Impact of Exchange Rate Regimes on Economic Growth with Continuous Classification of de facto Regimes. Jeffrey Frankel, April 26, 2019, Paper, “We construct a new database characterizing the de facto Exchange Rate Regime (ERR) for 145 countries during the full post-Bretton Woods period. With this new database, we firstly investigate the global changes of de facto ERRs over time, and then study the relationship between ERR and economic growth. Our findings contradict both “corner hypothesis” and “fear of floating”. It is shown that intermediate ERR are positively related to economic growth at the greatest significance level. We also find this relationship varies among countries at different income levels, and the choice of ERR appears to be more important for low-income countries rather than high-income ones.Link

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Can Free Markets Revive Brazil?

Can Free Markets Revive Brazil? Lawrence Summers, April 25, 2019, Audio, “Will a dose of free-market policies — from a populist politician, no less — finally bring Latin America’s biggest economy back to life? On this week’s episode of Stephanomics, Bruce Douglas visits the region’s busiest port to get a taste of what’s ailing Brazil — and the possible cure.  Host Stephanie Flanders also brings you the second part of her interview with Harvard University economist Larry Summers — the former U.S. Treasury secretary and Obama adviser — with his comments on Brazil’s economy and the new thinking on progressive U.S. fiscal policy. Finally, Stephanie talks with editor Catarina Saraiva about Bloomberg’s dreaded Misery Index.Link



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Is Oil Wealth Good for Private Sector Development?

Is Oil Wealth Good for Private Sector Development? Melani Cammett, Ishac Diwan, 2019, Paper, “When do autocratic rulers in oil-producing countries support private sector development? We argue that the size of oil rents per capita has an important effect on ruler support for the rule of law, respect for private property rights, and other factors that promote private investment. However, the effect is not linear, but instead resembles a U-curve: Only in countries with middle levels of per capita oil wealth would we expect the state to repress the private sector. At both low and high levels of oil wealth, autocrats interested in regime preservation would support and promote the private sector. Descriptive analyses of governance measures in Middle Eastern oil producers situated in comparative perspective offer empirical support for these propositions. These arguments and findings contradict some of the key claims in the resource curse literature but also differ from arguments that offer historically grounded explanations for development among oil exporters.Link

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Evolution or Revolution? Rethinking Macroeconomic Policy after the Great Recession

Evolution or Revolution? Rethinking Macroeconomic Policy after the Great Recession. Lawrence Summers, 2019, Book, “Leading economists discuss post–financial crisis policy dilemmas, including the dangers of complacency in a period of relative stability. The Great Depression led to the Keynesian revolution and dramatic shifts in macroeconomic theory and macroeconomic policy. Similarly, the stagflation of the 1970s led to the adoption of the natural rate hypothesis and to a major reassessment of the role of macroeconomic policy. Should the financial crisis and the Great Recession lead to yet another major reassessment, to another intellectual revolution? Will it? If so, what form should it, or will it, take? These are the questions taken up in this book, in a series of contributions by policymakers and academics. The contributors discuss the complex role of the financial sector, the relative roles of monetary and fiscal policy, the limits of monetary policy to address financial stability, the need for fiscal policy to play a more active role in stabilization, and the relative roles of financial regulation and macroprudential tools. The general message is a warning against going back to precrisis ways—to narrow inflation targeting, little use of fiscal policy for stabilization, and insufficient financial regulation.Link

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