The Role of Fiscal Policy When Private Debt is High

The Role of Fiscal Policy When Private Debt is High

  photo: familytreasures Excessive private debt is a major headwind against the global recovery. Where fiscal space is available, a more active role of fiscal policies can facilitate an orderly private deleveraging while minimizing its output costs. However, fiscal policy cannot do it alone; it has to be supported by complementary policies within credible frameworks. Globally, […]

Are Rising Interest Rates Really Good for Banks?

Are Rising Interest Rates Really Good for Banks?

photo: Brook Ward As the stock market soars to one record high after another, analysts do not hesitate to tell us why. One popular explanation is that expectations of higher interest rates are pushing up the stocks of banks and other financial companies  (example). Yet not so long ago, the same analysts were telling us that […]

What Are Development Corridor Strategies, and Do They Work?

What Are Development Corridor Strategies, and Do They Work?

photo: Marwa Morgan Across large swaths of the developing world, a new trend is taking hold: governments are targeting public and private investments in specific geographic areas in the hopes of creating spatial “development corridors.” These strategies are guided by the belief that concentrating and co-locating infrastructure investments in specific locations can create clusters of interconnected […]

Creating a Thriving Capitalist Society – Understanding Wages, Poverty, Government, and Business

Creating a Thriving Capitalist Society – Understanding Wages, Poverty, Government, and Business

photo: Aschevogel INTRODUCTION We receive a stream of financial information in the news, with a jumble of statistics and varied interpretations, and this creates a confusing picture that is very challenging to sort out. If the minimum wage is raised, is this an overall good or bad thing? Will it inhibit business? What should we make […]

Is Social Capital the Secret Ingredient for Entrepreneurial Success?

Is Social Capital the Secret Ingredient for Entrepreneurial Success?

Much has been said and written about the spectacular leap in innovation by Chile, Israel, Rwanda, and South Korea. These four very different countries have managed to harness innovation to transform their economies and achieve job creation, increased long-term productivity, and economic growth. What could possibly be the common denominator in their success? Economic studies […]

Weathering the Commodities Storm

Weathering the Commodities Storm

Are natural resources a curse or a blessing? History has taught us that for every story of economic success in exploiting natural resources there is one of failure. Consider the contrasting experiences of Nigeria and Botswana, two countries that in 1960 were considered to be amongst the poorest in the world. Both countries struck ‘gold’ […]

Getting Smart at the Sandpit

Getting Smart at the Sandpit

The large Mexican city of Guadalajara is a thriving commercial center and home to 1.5 million people. But nearly 24,000 homes in Guadalajara have only a dirt floor and lack access to indoor plumbing and sanitation services. To tackle the challenge of people living without access to basic services in a large metropolitan area, 25 […]

Why Is Gazprom’s Output on the Decline?

Why Is Gazprom’s Output on the Decline?

photo: Ricardo Cabral The monopoly is forced to adjust supplies against falling demand on the Russian and European markets. In the past year, Gazprom has set a new anti-record for gas production. Based on the results for the past 12 months, its production volume is set to 409.4 billion cubic metres in the wake of the […]

The Year Ahead: Where to Invest in 2017

The Year Ahead: Where to Invest in 2017

Source  Key takeaway – Across the globe, populism and protectionism are on the rise and macro fundamentals remain weak. In this challenging context, growth will remain subdued in 2017, hampered by sluggish investment and productivity, ever-accumulating savings and modest inflation. With the exception of the Unites States (US), developed markets (DMs) will stagnate, burdened by […]

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