South Africa is one of the most unequal countries in the world, with clear race and gender factors seeming to play a major and increasing role in soaring wealth inequality and income inequality. Upon a closer look at inequality, there is a strong relationship between the size distribution of households and sectoral inequality. The link […]
In 2021, three imbalances laden with consequences have become apparent: COVID-19 vaccines have remained concentrated in advanced economies, the recovery has exacerbated many inequalities and the climate crisis has not been met with a global plan, leaving most developing countries on the frontline of a battle they cannot win. South Africa epitomizes this triple crisis. […]
Macroeconomic policy has long been dominated by the use of the dynamic, stochastic general equilibrium (DSGE) and computable general equilibrium (CGE) models, used for predicting economic outcomes. Despite this popularity, a systematic and realistic assessment of DSGE and CGE models was missing, until economist Servaas Storm recently analyzed the shortcomings of the models and their […]
By Jeronim Capaldo Is the US economy running too hot, such that more spending is bound to drive up inflation with no benefit for growth and employment? Many experts think so. Would more trade be beneficial for economic growth and employment? On this, too, many agree. In answering these and other macroeconomic questions, multiple sources […]
By Maureen Heydt In the midst of the COVID-19 shock, further trade liberalization has been presented as a pathway to economic recovery, exemplified by the proposed EU-MERCOSUR free trade agreement (FTA). A June 2021 working paper published by the Boston University Global Development Policy Center assessed the prospects of the FTA, finding the agreement may compound economic stagnation and […]
By Natalia Marino On Thursday, June 10, the Boston University Global Development Policy Center hosted a webinar to discuss a new working paper analyzing the proposed EU-MERCOSUR free trade agreement (FTA), which has yet to take effect, but would represent the largest trade deal for both blocs in terms of number of citizens involved. Moderated […]
By Özlem Ömer and Jeronim Capaldo The proposed trade agreement between the European Union and the South American trade bloc MERCOSUR poses serious risks to economic development. But one wouldn’t know that from economic projections and most existing studies of the subject. As is traditional in trade policy rhetoric, projections of the EU-MERCOSUR agreement rule […]
The EU-MERCOSUR free trade agreement (FTA) has yet to take effect, but would represent the largest trade deal for both blocs in terms of number of citizens involved. While previous studies have made projections for the FTA’s impacts, none of the past projections have taken adverse trends in employment, wage inequality and productivity growth among […]
The world economy is still reeling from the COVID-19 shock and the subsequent restrictions to social and economic activity. While in the developed world governments have been able to mobilize a massive arsenal of monetary and fiscal measures to prop up their economies, estimated at between 20 and 25 percent of their GDP, the poorest […]
By Katie Gallogly-Swan The world economy is still reeling from the COVID-19 shock and the subsequent restrictions to social and economic activity. While in the developed world, governments have been able to mobilize a massive arsenal of monetary and fiscal measures to prop up their economies, estimated at between 20 and 25 percent of their […]