They are like exhibits in a gallery of dread: the Tequila Crisis of 1994; the Asian and Russian crises of 1997 and 1998, and the global financial crisis of 2008. They represent moments when foreign investors pulled away from Latin America and the Caribbean; when foreign credit and investment were withdrawn and the region suffered. They instill fear to this day. With a low … [Read more...] about Financial Integration: Friend or Foe of Low-Saving Countries?
Do Parents Really Know Best?
The tragic case of Charlie Gard, a blind and deaf infant, incapable of breathing on his own and wracked by epileptic seizures, seized the world's attention this month. His British parents held out desperate hope for an experimental treatment in the United States. His doctors, the British courts and the European Court of Human Rights argued that there was no cure for his rare … [Read more...] about Do Parents Really Know Best?
The Truth About Judicial Reform
Not since Italy's Mani pulite ("clean hands") investigations into political corruption has there been anything like it in Europe or the Americas. In Latin America, it is unprecedented. A sitting president is under indictment; a former president has been convicted, and dozens of lawmakers and their corporate allies have gone to jail. A few decades ago, Brazilians might have … [Read more...] about The Truth About Judicial Reform
A Simple Nudge is a Better Nudge
What are the best ways to get people to change their behavior for their own, and society’s, good? Seeking to avoid coercion, policymakers increasingly turn to pricing strategies, like "sin taxes" on alcohol or cigarettes. Or they resort to techniques from behavioral economics like "nudges," which employ peer pressure, moral appeals and suggestive images—such as pictures of … [Read more...] about A Simple Nudge is a Better Nudge
When an Excess of Small Firms Hurts Productivity
Policymakers have long accepted the central role of innovation in spurring aggregate productivity and growth. They have looked at the arrival of new systems of organization and new technologies, from the steam engine to electricity and the internet, as catalysts to material progress in the modern age. But in doing so, they may have underestimated the importance of another … [Read more...] about When an Excess of Small Firms Hurts Productivity