Well-thought-out policies can reverse the results of incompetence; the onus is on the Centre to spend now
Author Archive | Jayati Ghosh
First, a lot of it is simply wrong: that is, it is misleading about how economies work and the implications of economic policies and processes. For decades now, a significant and powerful lobby within the discipline has peddled half-truths and absolute falsehoods on many critical issues.
The Trump regime is ratcheting up its protectionist rhetoric vis-à-vis China. If this leads to new sanctions, it would worsen the COVID-induced trade crisis rather than help the U.S.
Early evidence on the intensity and drivers of the COVID-induced crisis in the U.S. and Europe suggests that the official response may lengthen the recession and delay recovery
Developing countries face collapsing international trade, falling remittances, sharp reversals of capital flows, and currency depreciation. Only bold policies—debt relief, international financing, planning, and more—will avert further catastrophe.
How long the COVID-19 crisis will last, and what its immediate economic costs will be, is anyone’s guess. But even if the pandemic’s economic impact is contained, it may have already set the stage for a debt meltdown long in the making, starting in many of the Asian emerging and developing economies on the front […]
Discussions on the state of the world economy centre around the likely negative impact of the novel coronavirus epidemic and the potential positive effect of the truce reflected in the “phase 1” trade deal between China and India.
In 2015, United Nations member states adopted the Sustainable Development Goals, which include an imperative to “ensure availability and sustainable management of water and sanitation for all.” Yet, in the last four years, matters have deteriorated significantly.
“Economic policy globally has become heavily distorted in favor of the rich, with governments increasingly beholden to corporate interests, and thus highly resistant to progressive policies.”
In 2013, the International Monetary Fund produced a report acknowledging that it had “underestimated” the effects that austerity would have on Greece’s economy. Yet the Fund has made the same mistakes in its subsequent deals with Argentina and Ecuador.
Worsening economic inequality in recent years is largely the result of policy choices that reflect the political influence and lobbying power of the rich. There is now a self-reinforcing pattern of high profits, low investment, and rising inequality–posing a threat not only to economic growth, but also to democracy.
What is noteworthy is that the deceleration in import volume growth has been particularly marked in the emerging economies of Asia and Latin America, pointing to a loss of momentum in the countries that were expected to be new growth poles in the immediate aftermath of the 2007 crisis.
Governments and central banks that were upbeat about global economic recovery are turning pessimistic. A coordinated fiscal stimulus across nations is the need of hour.
It’s now official: workers around the world are falling behind. The International Labor Organization’s (ILO) latest Global Wage Report finds that, excluding China, real (inflation-adjusted) wages grew at an annual rate of just 1.1% in 2017, down from 1.8% in 2016. That is the slowest pace since 2008.
Ever since the global financial crisis of 2008–2009, the trajectory of the world economy has been hesitant, unstable and prone to many risks. Output recovery has been limited and fragile; and, more significantly, even in the more dynamic economies, it has not increased good-quality employment or reduced inequality and material insecurity.
This lack of distinction explains the decline in women’s workforce participation rates. The decline reflects a shift from paid to unpaid work.
A decade after the Global Financial Crisis, developing countries still bear the scars in the form of lower growth and investment rates.
Trump is threatening to dismantle the current world trading system, but in his first year US trading patterns show strong continuity with the previous administration.
Optimistic assessments of the synchronised recovery across the world economy ignore the factors driving the weak upturn that make it fragile.
Ever since Larry Summers and Alan Heston produced what become known as the “Penn World Tables” comparing prices and thereby the purchasing power of currencies across countries, the urge to use some deflator of market exchange rates to compare incomes across countries has been strong.