Found 136 article(s) for author 'Ricardo Hausmann'

Secular Stagnation for Free

Secular Stagnation for Free. Ricardo Hausmann, March 27, 2015, Opinion. “Something is definitely rotten in the state of capitalism. Despite unprecedentedly low interest rates, investment in most advanced countries is significantly below where it was in the years prior to the 2008 crisis, while employment rates remain stubbornly low. And even investment in the pre-crisis period was unimpressive, given low prevailing interest rates. For some reason, achieving a level of investment that would generate full employment seems to require negative real (inflation-adjusted) interest rates, which is another way of saying that people have to be paid to invest…” Link

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Secrets of Economic Growth | Ricardo Hausmann

Secrets of Economic Growth | Ricardo Hausmann. Ricardo Hausmann, March 10, 2015, Video. “Economic Complexity is like a game of Scrabble, says Ricardo Hausmann. The more letters you have, the more words you can make; the more capabilities a country has, the more diverse products it can generate. In this video for the World Economic Forum Hausmann, from the Harvard Kennedy School of Government, uses metaphors and metrics to explain the gap between rich and poor countries.” Link

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Redistribution or Inclusion?

Redistribution or Inclusion? Ricardo Hausmann, January 30, 2015, Opinion. “The issue of rising income inequality loomed large at this year’s World Economic Forum in Davos. As is well known, the United States’ economy has grown significantly over the past three decades, but the median family’s income has not. The top 1% (indeed, the top .01%) have captured most of the gains, something that societies are unlikely to tolerate for long. Many fear that this is a global phenomenon with similar causes everywhere, a key claim in Thomas Piketty’s celebrated book ‘Capital in the Twenty-First Century.’ But this proposition may be dangerously…” Link

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Venezuela’s economic collapse owes a debt to China

Venezuela’s economic collapse owes a debt to China. Ricardo Hausmann, January 20, 2015, Opinion. “Every economic catastrophe brings soul-searching. When Argentina collapsed at the end of 2001, the International Monetary Fund was forced into a critical assessment of its involvement in the country. Similar processes were triggered at the World Bank after unsuccessful development projects in Africa. The coming implosion of the Venezuelan economy should prompt similar introspection…” May require purchase or user account. Link

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The Economics of Inclusion

The Economics of Inclusion, Ricardo Hausmann, November 7, 2014, Opinion. “Many people find economic growth to be a morally ambiguous goal – palatable, they would argue, only if it is broadly shared and environmentally sustainable. But, as my father likes to say, “Why make something difficult if you can make it impossible?” If we do not know how to make economies grow, it follows that we do not know how to make them grow in an inclusive and sustainable way. Economists have struggled with the tradeoff between growth and equity for centuries. What is the nature of the tradeoff? How can it be minimized? Can growth be sustained if it leads to greater inequality?…Link

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Venezuela’s president is crafting a disaster

Venezuela’s president is crafting a disaster. Ricardo Hausmann, September 18, 2014, Opinion. “YOU’RE A professor at a university in New England. You have gone on a business trip to the Middle East. At 3 a.m., as you are trying to catch up with your sleep and your jet lag, your daughter calls. She is distraught because President Obama has just gone on national television and spent 10 minutes telling the country that you are a thief and a financial assassin, that you conspire with dark foreign forces to harm the nation. While on his rant, he orders the Prosecutor General and the Attorney General to act against you…Link

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Should Venezuela Default?

Should Venezuela Default? Ricardo Hausmann, September 5, 2014, Opinion. “Will Venezuela default on its foreign bonds? Markets fear that it might. That is why Venezuelan bonds pay over 11 percentage points more than US Treasuries, which is 12 times more than Mexico, four times more than Nigeria, and double what Bolivia pays. Last May, when Venezuela made a $5 billion private placement of ten-year bonds with a 6% coupon, it effectively had to give a 40% discount, leaving it with barely $3 billion. The extra $2 billion that it will have to pay in ten years is the compensation that investors demand for the likelihood of default…”  Link

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Why Are So Many Countries Poor, Volatile, and Unequal?

Why Are So Many Countries Poor, Volatile, and Unequal? Ricardo Hausmann, 2014, Syllabus. “This course explores the causes and consequences of three salient and interrelated characteristics of developing countries, namely poverty, volatility, and inequality, and it links them to current themes in development policy. The course will characterize the relationships between these three problems and a varied class of proximate and deeper determinants of economic development, including national saving, human capital accumulation, international trade and technology diffusion, demography, geography, and macroeconomic…” Link

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Piketty’s Missing Knowhow

Piketty’s Missing Knowhow. Ricardo Hausmann, May 27, 2014, Opinion. “A useful way to understand the world’s economy is the elegant framework presented by Thomas Piketty in his celebrated book Capital in the Twenty-First Century. Piketty splits the world into two fundamental substances – capital and labor. Both are used in production and share in the proceeds. The main distinction between the two is that capital is something you can buy, own, sell, and, in principle, accumulate without limit, as the super-rich have done. Labor is the use of an individual capacity that can be remunerated but not owned by others, because slavery has ended…” Link

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The Mismeasure of Technology

The Mismeasure of Technology. Richardo Hausmann, April 29, 2014, Opinion. “There is nothing better than fuzzy language to wreak havoc – or facilitate consensus. Ludwig Wittgenstein argued that philosophical puzzles are really just a consequence of the misuse of language. By contrast, the art of diplomacy is to find language that can hide disagreement. One idea about which economists agree almost unanimously is that, beyond mineral wealth, the bulk of the huge income difference between rich and poor countries is attributable to neither capital nor education, but rather to “technology.” So what is technology?…” Link

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