More in Global Economy


2 years

The Medical Bankruptcies Debate

The debate over the extent to which uninsured medical costs lead to personal bankruptcies is interesting for a couple of reasons. In terms of social science, it shows the difference between a naive reading of survey data and an actual research design. In terms of politics, it shows the allure of a more glamorous and striking claim, even when incorrect, over a similar claim that is less flashy but actually true.

2 years

Brainstorming Anti-Poverty Programs

There are legitimate concerns about how the poverty line is set. It was set back in the early 1960s and adjusted for inflation since then, but without regard for other changes in the economy.

2 years

Some Thoughts About Economic Exposition in Math and Words

Analysis in economics and other social sciences often uses a combination of words and mathematics. There is an ongoing critique by those who argue that while the math may sometimes be useful, it is too often deployed with insufficient regard for whether it captures the underlying economic reality. In such cases, the argument goes, math is used as a way of pretending that an argument about the real-world economy has been definitely made, or settled, when in reality only an equation of limited application has been solved.

2 years

Snapshots of Economic Inequality Around the World

Compiling data on economic inequality from countries all around the world is a hefty task, which has been shouldered by a group of more than 100 researchers around the world who contribute to the efforts of the World Inequality Lab and the World Wealth and Income Database. The World Inequality Report 2018, written and coordinated by Facundo Alvaredo, Lucas Chancel, Thomas Piketty, Emmanuel Saez, Gabriel Zucman, provides an overview of their findings. Here are a few of the figures that jumped out at me.

2 years

Happiness Around the World — And For Migrants

The utilititarian philosopher Jeremy Bentham wrote of a "sacred truth — that the greatest happiness of the greatest number is the foundation of morals and legislation." The World Happiness Report 2018 is edited by John F. Helliwell, Richard Layard and Jeffrey D. Sachs, with chapters by various scholars. It takes insights about happiness seriously. In this version of the annual report, most of the chapters relate happiness to migration topics, although are also a few chapters with a review of recent happiness data around the world, chapters about about happiness in Latin America more broadly, and about happiness issues related to the US health care system.

2 years

Where in the World? Hunting for Value in the Bond Market

Few government bond markets offer a positive real return. Those that do tend to have high associated currency risk. Active management of fixed income portfolios is the only real solution. Italy is the only G7 country offering a real-yield greater than 1.5%.

2 years

The Dramatic Expansion of Corporate Bonds

Overall world debt in the last year or two is at its all-time high as a share of world GDP. But there is common pattern that as countries grow and their financial markets develop, their level of debt also tends to rise. Perhaps even more interesting is that the importance of the components of that debt have been shifting. During and after the Great Recession, government borrowing was the main driver of rising global debt. But corporate borrowing has become more important.