More in Global Economy


4 months

The US Deficit Problem Is A Spending Problem

US deficit is rising due to excessive spending increases, despite rising tax receipts. The federal government’s revenue went up by 4% to $3.46 trillion in the 2019 fiscal year, according to the CBO report. However, spending went up by more than 8% to $4.45 trillion.

4 months

The Repo Market Incident May Be The Tip Of The Iceberg

The Federal Reserve has injected $278 billion into the securities repurchase market for the first time. Numerous justifications have been provided to explain why this has happened and, more importantly, why it lasted for various days. The first explanation was quite simplistic: an unexpected tax payment. This made no sense. If there is ample liquidity and investors are happy to take financing positions at negative rates all over the world, the abrupt rise in repo rates would simply vanish in a few hours.

4 months

The Jobs Problem in India

One of India's biggest economic challenges is how new jobs are going to be created. Venkatraman Anantha Nageswaran and Gulzar Natarajan explore the issue in "India’s Quest for Jobs: A Policy Agenda" (Carnegie India, September 2019). They write:

4 months

The Pedagogical Lessons and Tradeoffs of Online Higher Education

The Fall 2019 issue of Daedalus is on the subject "Improving Teaching: Strengthening the College Learning Experience," edited by Sandy Baum and Michael S. McPherson. There's a lot to digest in the issue, and I'll list the table of contents below. But I found myself especially interested by the comments on online education in "The Human Factor: The Promise & Limits of Online Education," by Baum and McPherson, as well as in "The Future of Undergraduate Education: Will Differences across Sectors Exacerbate Inequality?" by Daniel I. Greenstein.

4 months

Challenges Facing the Arab Development Model

Here's a description of the Arab "social contract" and "development model" according to a recent report by Adel Abdellatif, Paola Pagliani, and Ellen Hsu, "Leaving No One Behind Towards Inclusive Citizenship in Arab Countries" (July 2019). It's an Arab Human Development Report Research Paper, written for the Regional Bureau for Arab States in the UN Development Programme. They write:

4 months

Value, Momentum and Carry – Is it Time for Equity Investors to Switch?

·        Index tracking and growth funds have outperformed value managers for several years ·        Last month value was resurgent, but will it last? ·        In the long run, value has offered a better risk adjusted return ·        The long-term expected return from growth stocks remains hard to assess

4 months

The Dispersion of High and Low Productivity Firms Within an Industry

If you think about an economy as fairly stable and static, you would expect that any two companies within an industry would be fairly close in terms of productivity. After all, if Company A and Company B are selling similar products, and A has much higher productivity than B, it should drive B out of business. Thus, one might expect that at the end of this process, the competitors we observe within an industry in the real world should be fairly close in productivity level.