In The News

We’re in a Low-Growth World. How Did We Get Here?

Neil Irwin August 8, 2016
Economic growth increases wealth and improves living standards, driven by additional workers, work hours and technological advancements that increase productivity. But economic growth and income have slowed for the world’s most advanced economies, and the trends contribute to rising inequality and populist movements. Economists are trying to determine if supply or demand issues contribute to low...

Consumers Unlikely to Rescue China's Sputtering Economy

Huang Zhilong August 2, 2016
Economists, inside China and outside, point to consumer spending on an expanding services for economic growth. But that requires borrowing and Chinese consumers may balk at taking on more debt, explains economist Huang Zhilong for Caixin. Huang points out that Chinese household debt is already at historic highs and consumers lacking official urban residence permits loan may struggle with loan...

A Brief History of (In)equality

J. Bradford DeLong July 28, 2016
Rising inequality is a complex challenge that lacks simple solutions. “This complexity implies that any adjustments to our political economy should be based on sound social science and directed by elected leaders who are genuinely acting in the interest of the people,” argues economist J. Bradford DeLong. He summarizes processes throughout history that distributed economic gains in disparate ways...

India’s Digital Revolution Poised to Propel Services

Nandan Nilekani July 26, 2016
India is poised to revolutionize the service industry, in such a way that borrowing, saving and transferring money could happen as swiftly as sending an email. This technological leap enables India to rely more on services and domestic consumption even as world trade is slumping. A nationwide government initiative encouraging financial inclusion and bank accounts, combined with biometric-based...

With Globalization in Danger, G-20 Double Down on a Defense

July 26, 2016
The world’s largest economies have prospered from globalization, yet G20 finance leaders must confront the growing opposition to trade and immigration among their citizens: “finance ministers and central bankers from the Group of 20 put a stepped-up emphasis on fiscal and structural policies to boost growth, and renewed a pledge to promote inclusiveness,” reports Bloomberg News. The article...

Global Elites Must Heed the Warning of Populist Rage

Martin Wolf July 21, 2016
Dissatisfaction runs high in many of the world’s most advanced economies – and many voters are turning to leaders who encourage nationalism, protectionism and other extreme policies, explains Martin Wolf in the Financial Times. He points to studies showing “Stagnant incomes bother people more than rising inequality.” Economic recessions, aging populations, rising inequality, immigration and...

A Quarter Century of Market Reform Leaves India Richer With Wider Inequality

Dilip Hiro July 12, 2016
India opened to the world in 1991 with its New Economic Policy that embraced economic liberalization and privatization. The policies lifted India’s GDP, but also widened the gap between rich and poor, explains Dilip Hiro, author of 36 books including “The Age of Aspiration: Power, Wealth, and Conflict in Globalizing India.” Services have climbed, contributing to a growing economy boosted by the...