Robust Global Economic Recovery Needs Coordinated Policy Response Anis Chowdhury and Jomo Kwame Sundaram

In the wake of releasing the IMF’s latest assessment of the global economy, Chief Economist Maurice Obstfeld noted in his blog, “Global growth continues, but at an increasingly disappointing pace that leaves the world economy more exposed to negative risks. Growth has been too slow for too long.” The IMF anticipates 3.2% global economic growth this year, down from 3.4% predicted in January, 3.6% last October and 3.8% last April. Nonetheless, this continuously downward revised forecast is still higher than the United Nations global growth forecast of 2.9% and 3.2% in 2016 and 2017 respectively early this year. ‘Solution’ is…

Banks and the New Asian Tigers C.P. Chandrasekhar

In the immediate aftermath of the 2008 financial crisis and the Great Recession that followed, two countries that were seen as crucial to propping up global economic growth and even ensuring a recovery were China and India. Prior to the crisis these two countries were among those that had registered the highest growth rates in the world economy. Though they were both affected by the 2008 crisis, countercyclical measures adopted by their governments were seen as having returned them to growth. This strengthened the argument that these giants serve as the locomotives for the world economy. Much has changed since…

The Continuing Debt Problem in Asia C.P. Chandrasekhar and Jayati Ghosh

Private household debt is going to be a major concern for many Asian economies as excessive household debt and falling realty prices combine to create a potentially potent mix. Continuing_Debt_Problem (Download the full text in PDF format) (This article was originally published in the Business Line print edition dated December 8, 2015)

The Impacts of the 2008 Global Financial Crisis on Developing Countries: The case of the 15 most affected countries Hasan Comert and Esra Nur Ugurlu

[Working Paper No. 03/2015] From their analysis of the impact of the recent global crisis, the authors show that the trade channel was the most important mechanism in the transmission of the crisis from advanced economies to developing countries. WP_03_2015 (Download the full text in PDF format)

The End of Peripheries? On the enduring relevance of structuralism for understanding contemporary global development Andrew M. Fischer

Despite repeated chronicles of a death foretold, the centre–periphery analysis remains very relevant for understanding the challenges of contemporary development. End_Peripheries (Download the full text in PDF format) (This article was originally published in Development and Change Volume 46, Issue 4, July 2015.)

Society, Economic Policies, and the Financial Sector Y.V. Reddy

This is the Per Jacobsson Foundation Lecture 2012 delivered by the author at Basel, Switzerland. It is argued that the biggest challenge for the future of finance lies in designing governance practices that avoid the dangers of comprehensive regulatory capture. Approaches to regulation of the financial sector should continue to be national since the global environment is not necessarily favourable. In this regard, consideration of regulation, competition and ownership in the financial sector in an integrated manner, enhanced monitoring of financial market activities and the use of fiscal tools to supplement regulation could be helpful. Financial_Sector (Download the full text…