The Mammoth in the Room: Factors Behind Income Inequality

Differentiating the deeper causes of income inequality from those that are more accidental is difficult. When we examine our own particular environments, it is natural that we should focus on our immediate surroundings: our colleagues, neighbors and fellow citizens. We don’t often think about how those on the other side of the world are faring. […]

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Redistribution is not Enough

Ricardo Hausmann recently wrote a piece titled “Redistribution or inclusion?” for Project Syndicate. It provides a different view of the causes of inequality of income, looking particularly at developing countries. It points out that modern production requires many complementary inputs, many of which are present in advanced economies, but lacking in emerging economies. Some years ago a friend told […]

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China and its role in emerging economy growth

Growth rates in emerging countries tend to be volatile and are affected by what happens beyond their borders. A recent recent study by economists at the IMF (International Monetary Fund) decomposes deviations from trend growth of emerging economies into internal and external factors. The latter include things such as global financing conditions, growth in advanced […]