The collapse in developing country exports C. P. Chandrasekhar and Jayati Ghosh

If there has been one big change in the nature of the global economy in the second decade of this century, it is in global trade. In the first decade of this century, especially in the period 2002-08, cross-border trade grew much more rapidly than total world output, and the integration of countries through greater exchange of goods and services essentially became the primary engine of growth. It is true that the explosion of financial activity that has become such a prominent feature of contemporary capitalism also added substantially to income growth – and indeed generated the bubbles that were…

Monitoring the Evolution of Latin American Economies using a Flow-of-funds Framework Esteban Peez Caldentey and Manuel Cruz Luzuriaga

Flow-of-funds accounting permits to monitor the financial sector in terms of flows and stocks and to analyze its relationship with the real sector. Traditionally practised in developed nations, this accounting has not experienced a parallel development in developing countries. In order to fill this gap, the paper undertakes the construction of a data base of flow-of-funds account matrices for various Latin American and Asian countries, exemplifying their use for the study of financial crisis in these regions. Monitoring_Evolution (Download the full text in PDF format)

Can Developing Asia Hold its Ground? C.P. Chandrasekhar and Jayati Ghosh

Capital flight from Asia points to investor concerns about both political processes in the big Asian developing economies and medium-term economic prospects. developing_asia_hold_ground (Download the full text in PDF format) (This article was originally published in the Business Line on December 5, 2016)

IDEAs’ Contribution to the 7th Asia Future Forum

IDEAs in collaboration with Korea Association of Political Economy and Hankyoreh Media Group organised a set of three sessions on, "Alternative Development Models for Asia in the Age of Low Growth: Implications from National Experiences", as part of the 7th Asia Future Forum held over 23-24 November, 2016 in Conrad Seoul, Korea. The event was organized to foster cooperation within Asia to seek balance between prosperity and sustainability of the world. The programme of the Development Economics session is as follows: Development Economics Session on "Alternative Development Models for Asia in the Age of Low Growth: Implications from National Experiences" Time :…

Emerging Markets: Deja vu all over again Jayati Ghosh

So now we have witnessed yet another sell-off of emerging market assets in global financial markets in the last week of January, which has caused currencies to depreciate from Argentina to Indonesia and many countries in between. For those who had seen it coming,  it was one more reminder of the extreme fragility generated by global financial integration, and the problems that such exposure can create for developing countries whether or not they also have specifically domestic economic concerns. Essentially, these markets are now so peculiarly integrated into the global financial system that they are part of the collateral damage…