Growth slowed in Indonesia in 2012, indicating that the global financial crisis and economic slowdown had indeed had an effect on ASEAN’s biggest economy. Indonesia grew at 6.2% in 2012, down slightly from 6.5% in 2011. Overall, this remains a respectable figure. Bear in mind that Indonesia's annual average growth in the previous decade was below 6% (see Figure 1).
Growth dynamics and policy choices facing Indonesia
Ganeshan Wignaraja , 21 February 2013
Natural wealth: Is it a blessing or a curse?
Otaviano Canuto, Matheus Cavallari, 12 October 2012
An abundance of natural resources is intuitively expected to be a blessing. Nonetheless, it has been argued for some decades that large endowments of natural resources may actually become more of a curse, often leading to slow economic growth and redistributive struggles (Sachs & Warner 1995, and Collier and Hoeffler 1998; Cabrales and Hauk 2011)1.
Beyond the curse: Policies to harness the power of natural resources
Rabah Arezki, Thorvaldur Gylfason, Amadou Sy, 8 July 2012
There is a broad consensus in academic and policy circles that the presence of natural resources poses a number of potential challenges in resource-rich countries, such as:
The on-going debate on natural resources and development
Erwin Bulte , Christa Brunnschweiler, 28 May 2012
Prices of natural resource commodities have increased a lot in recent years. While the current commodity price index is not as high as it was during its peak in the spring of 2008, commodity prices have increased by 10% over the past 6 months, by 56% over the past 5 years, and by no less than 249% over the past 10 years. For certain specific commodities, price hikes are even larger.
Regional integration and natural resources: Who benefits?
Céline Carrère, Julien Gourdon, Marcelo Olarreaga, 15 May 2012
Lasting trade agreements are generally those that generate evenly distributed gains. When agreements involve countries with large differences in natural resource abundance, evidence shows that gains are unevenly distributed and agreements are short-lived (World Trade Report 2010).
Resource trade: Policy and policy reform
Michele Ruta, Anthony Venables, 21 April 2012
Resource trade is once again in the spotlight. Oil prices are up 14% since the beginning of the year, creating new concerns for the recovery of the global economy (Annunziata 2012). In March, the governments of Japan, the EU and the US filed a new dispute at the WTO with respect to China's restrictions on the exports of rare earths (WTO 2012).
Shock ‘n’ oil
Marco Annunziata, 18 March 2012
Oil prices (Brent) are up 14% since the beginning of the year. How bad is this, and how bad can it get? The consensus so far is that this is mostly a demand-driven move rather than a supply shock: after the gloom of Q4, data and news flow have been encouraging, with better than expected activity figures in the US, progress on the Eurozone-crisis front, and resilience in China’s economy.
Rogue aid? On the importance of political institutions and natural resources for China’s allocation of foreign aid
Axel Dreher, Andreas Fuchs, 27 January 2012
In an obvious reference to China, US Secretary of State Hillary Clinton recently warned during her visit to Burma to “[b]e wary of donors who are more interested in extracting your resources than in building your capacity” (quoted in FT 2011).
Oil and democracy: New insights
Francesco Caselli, Andrea Tesei, 22 December 2011
Looking at the historical experiences of many countries it seems uncontroversial that an abundance of natural resources can shape political outcomes.
South-South FDI, institutional quality, and natural resources
Mariya Aleksynska, Olena Havrylchyk, 22 September 2011
In the past twenty years, the share of developing and transition countries in the global foreign direct investment (FDI) outflows has doubled, reaching 16% of the total FDI outflow stock. Most of this increase has happened since 2004 (UNCTAD 2010). This process has not only been driven by an active role of China, whose share amounts to 8.5% of the total FDI stemming from the South.
- The case for 4% inflationBall
- Helicopter money as a policy optionReichlin, Turner, Woodford
- The banking crisis as a giant carry trade gone wrongAcharya, Steffen
- Everything the IMF wanted to know about financial regulation and wasn’t afraid to askBair
- Rethinking macroeconomic policy: Getting granularBlanchard, Dell'Ariccia, Mauro
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
- Debt, deleveraging, and the liquidity trap: A new modelKrugman
Baldwin, Kawai, Wignaraja, 11 June 2013
Giavazzi, Portes, Weder di Mauro, Wyplosz
Reichlin, Turner, Woodford
CEPR Policy Research
- The "Greatest" Carry Trade Ever? Understanding Eurozone Bank RisksAcharya, Steffen
- Political Credit Cycles: The Case of the Euro ZoneFernández-Villaverde, Garicano, Santos
- Winning by Losing: Incentive Incompatibility in Multiple QualifiersDagaev, Sonin
- Income and schoolingBrückner, Gradstein
- Monetary Policy and Rational Asset Price BubblesGalí