Exports of the ‘BRICS’ nations all fell in the last quarter or two. This column, which presents the latest Global Trade Alert report, argues that foreign trade distortions are harming BRICS exports. At the same time, BRICS governments are distorting trade with their own policies. As the BRICS leaders meet for their annual summit this week, they ought to rethink their trade strategy.
The relationship between aggregate output and income inequality is central in macroeconomics. This column argues that greater income inequality raises the economic growth of poor countries and decreases the growth of high- and middle-income countries. Human capital accumulation is an important channel through which income inequality affects growth.
A booming financial sector means economic growth. Or does it? This column presents new evidence showing that when the financial sector grows more quickly, productivity tends to grow disproportionately slower in industries with either lower asset tangibility or in industries with higher research and development intensity. It turns out that financial booms are not, in general, growth-enhancing.
The financial crisis brought with it many challenges, both to prevailing disciplinary tenets, and for research and policy more generally. This column outlines the lessons that can be drawn from the financial crisis – issues like financial market failures, macro-prudential policy, structural changes of the financial system, and the European banking union. It argues for the inclusion of these topics in curricula for the next generation of finance students.
In Britain today, a majority of those in poverty live in working, rather than non-working, households. This challenges the long-held notion that paid work offers a route out of poverty. This column argues that structural changes in the labour market have brought about profound changes in the social security system. A failure to acknowledge these underlying changes means that dialogues about the political direction of the British economy can be problematic and potentially misleading.
Other Recent Columns:
- Savings after retirement: A survey
- Determinants of fluctuations in the financial system
- The corporate debt bias and the cost of banking crises
- Determinants of banks’ home bias
- Currency is not destiny
- The market economy’s stability
- Greece is solvent but illiquid: Policy implications
- The meaning of a referendum: Austerity and sovereignty
- Firm types and jobs creation in developing countries
- Mental health stigma
- First-day criminal recidivism
- Stock prices and high-frequency news analytics
- Cross-border acquisitions and labour regulations
- Path to Grexit tragedy paved by political incompetence
- Procyclical emerging market policy: New evidence
- Japan and the Great Divergence, 725 to 1874
- Greece can still avoid a catastrophic exit from the Eurozone
- Studying economic research in Europe: The COEURE project
- Sources of stock-market fluctuations: New evidence
- How do Japanese exporters manage their exchange rate exposure?