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)

Making Growth Deliver Exports – Not the other way around Jayati Ghosh

Suddenly, it seems, the momentum has shifted. For most of the past decade, the developing world was growing at a much faster clip than the rich North, creating talk of a new international world order, an “Asian century” and generating much hype about the emergence of the BRICS. The global financial media pushed these ideas even further, talking about the huge economic potential about to be unleashed particularly in those developing countries that still had relatively low per capita incomes and predominantly young populations. These claims were repeated so constantly, and the euphoria thus created was so widespread, that governments…

Explaining Global Financial Imbalances: A critique of the saving glut and reserve currency hypotheses Thomas I. Palley

This paper examines three different explanations of the global financial imbalances. It begins with the neoliberal globalisation hypothesis that explains the imbalances as the product of the model of globalisation implemented over the past thirty years. It then examines the saving glut and reserve currency hypotheses. The paper concludes by arguing that both the saving glut and reserve currency hypotheses are inconsistent with the empirical record and both provide a misleading guide for policy. global_financial_imbalances (Download the full text in PDF format) (The paper was originally published as a working paper by the Macroeconomic Policy Institute (IMK).)