We buy everything we crave at the supermarket; purchase the latest electronic gizmos the minute they appear; and download movies on the internet with abandon. Then we wonder why we have no money for a new car or savings for retirement. What in the world is wrong with us? The truth is that we aren't as morally weak as we think. Science shows that many of us are genetically wired … [Read more...] about Fighting the Spending Demon
Macroeconomics and Finance
Adjusting to Shocks to Protect the Region’s Future
Commodity prices are falling or are at their lowest point in years. The demographic boom is fading. Debts are on the rise, and many currencies have undergone sharp depreciations. What does all this mean for Latin America and the Caribbean? Our 2016 Macroeconomic Report Time to Act looks at some of the critical issues facing countries in the region. It explores the fiscal … [Read more...] about Adjusting to Shocks to Protect the Region’s Future
Jumping to Higher Productivity and Income
How should Latin American countries invest in capabilities to boost their per capita incomes? Research at the IDB suggests that much of the gap in income per-capita levels between Latin American countries and the United States is due not to the amount of capital accumulated. Rather it is a result of drops in the region's productivity levels vis-à-vis the U.S. The trick is … [Read more...] about Jumping to Higher Productivity and Income
Commodity Prices (Again): Permanent or Temporary Shocks?
I returned home recently from another excellent “di Tella Summer Camp”. It’s no longer in the summer, it was not held in the Universidad Torcuato di Tella and it’s now called the Workshop in International Economics and Finance but the event is still going strong; this was the 19th year! Our extremely hospitable hosts were the Central Bank of Colombia and in the “policy panel” … [Read more...] about Commodity Prices (Again): Permanent or Temporary Shocks?
How the Rich Can Help Poor Countries
It's not always easy to be a billionaire. In the United States, resentment against the top 1%, with their immense share of national income, helped spur the Occupy Wall Street movement and its slogan "We are the 99%." And that resentment is even more intense for the one-tenth of 1% who are on the Forbes 400 list of wealthiest Americans and earn more than millions of families … [Read more...] about How the Rich Can Help Poor Countries