The True Face of the Global Recovery C. P. Chandrasekhar and Jayati Ghosh

Optimistic assessments of the synchronised recovery across the world economy ignore the factors driving the weak upturn that make it fragile. True_Face_Global_Recovery  (Download the full text in PDF format) (This article was originally posted in the Business Line on April 10, 2018.)

The imperial intentions of Trump’s trade war babble Andrew M. Fischer

Trump’s trade tirades are being vigorously disputed by liberal economists the world over, although the riposte is usually in defence of free trade and existing trade deals. However, many of these same economists have promulgated the underlying idea that US trade deficits are the result of some sort of disadvantage or decline. For instance, as I discussed in 2009, 2010, 2011 and 2012, many prominent economists such as Paul Krugman argued then (and many still do now) that China’s undervalued currency gave it an unfair advantage, causing deficits and even financial bubbles in the US. Many economists on the left…

Doyen of ‘Dependency Theory’ Sunanda Sen

Theotonio dos Santos (1936–2018), who passed away on 27 February in Rio de Janeiro, has been one of the major proponents of dependecia or dependency theory, along with Andre Gunder Frank, Giovanni Arrighi, Samir Amin and, to some extent, Immanuel M Wallerstein. Continuing to provide inspiration to large sections of people, including social scientists and activists in different parts of the world, dependency theory has been important for those interpreting the growing disparities between the advanced and the developing world. Santos had a particularly marked presence in Latin America, both through his writings and in his active involvement in political struggles against…

Multilateralism redux and the Havana Charter Richard Kozul-Wright

President Donald Trump’s tariff tantrum has provoked a mixture of disbelief and loathing, none more than from economic pundits who have deemed it irrelevant (for reducing the trade deficit), irresponsible (in damaging job prospects) and irrational (by weakening the global value chains on which American business depends). Much of this criticism hits the mark. But it is worked in to a meta-narrative about the end of the post-war liberal order that not only presents a flawed interpretation of history but one that is unlikely to help advance a policy agenda that speaks to the anxiety and anger that President Trump…

How unequal are world incomes? C. P. Chandrasekhar and Jayati Ghosh

Global inequality has reduced as income growth shifts from the Northern countries to emerging markets like the BRICS. But this shift is quite limited and has not benefited the bulk of people in the developing world. Unequal_World_Incomes (Download the full text in PDF format) (This article was originally posted in the Business Line on 27 March 2018.)  

Reflections on the Old and New Developmentalism Jan Kregel

New Developmentalism incorporates the positive contributions of early development theorists into the future point of view. This assessment points to the importance of and problems relating to exchange rates in the development process and attempts to provide a contemporary version of the theory, adapted to the twentieth century world of globalization and financialization. Old_New_Developmentalism (Download the full text in PDF format) (This article was originally published in the Brazilian Journal of Political Economy, vol. 38, nº 1 (150), pp. 70-75, January-March/2018)

A Dangerous Period Prabhat Patnaik

For over half a century after the second world war, fascism had ceased to be a serious political force anywhere. There were no doubt many authoritarian, even murderous, regimes, and military dictatorships, especially in the third world, often installed through CIA-backed coups against progressive nationalist governments, and enjoying the tacit support of the U.S. But these must be distinguished from fascist regimes, which rely on mass political mobilization by arousing hatred against some hapless minority. For people of my generation, and several succeeding ones, the main contest appeared to be between liberalism and socialism. There were I believe, two major…

A Note on Estimating Income Inequality across countries using PPP Exchange Rates Jayati Ghosh

The use of exchange rates based on Purchasing Power Parities to compare income across countries and over time has become standard practise. But there are reasons to believe this could lead to excessively inflated incomes for poor countries and in some cases also inflate the extent of real changes over time. Estimates of gross domestic product growth in Chinese and Indian economies in recent years provide examples of this. ELRR_PPP_Exchange_Rates (Download the full text in PDF format) (This article was originally posted in the Economic and Labour Relations Review on January 30, 2018.)

Rising Incomes, Falling Wages Jayati Ghosh

It seems that everyone loves to talk about inequality, and how much they dislike it. From Christine Lagarde in the International Monetary Fund to the Indian Prime Minister speaking at the World Economic Forum in Davos, Switzerland, everyone is united in condemning inequality globally and in their own countries. But ironically, the ones – especially those in the public gaze – who are most vociferous about this also seem to be those who ultimately refuse to take any measures to deal with it, even when such measures are obvious and available. It is almost as if allowing people to vent…