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
Pride and Frustration on Women’s Day
Latin America and the Caribbean celebrate International Women's Day March 8 with a mixture of pride and frustration. Pride, because women have dramatically increased their level of education and their participation in the labor force. Frustration, because they still have trouble breaking through the glass ceiling into top managerial positions and continue to earn less than men … [Read more...] about Pride and Frustration on Women’s Day
Reform and the Power of Party Platforms
For decades, analysis of political parties around the world focused on where they stood on the role of the state versus the markets in the economy; the need for high or low taxes; and the advantages or disadvantages of social-welfare spending. It focused, in other words, on the position of parties on the ideological spectrum of left to right. More recent analysis, however, … [Read more...] about Reform and the Power of Party Platforms