Daily Archives: August 9, 2012

Plain English: The future of economics, according to the chosen ones

I’ve read the entirety of The Big Think’s “Empirics and Psychology: Eight of the World’s Top Young Economists Discuss Where Their Field Is Going” plus comments, and while there’s a lot about it that I find problematic, I think I’d rather focus on the few items I’m most in agreement with and that I find most relevant to the world as I see it:

Gauti Eggertsson, NY Fed, 37:

“My guess is that if one looks back 20 years from now, one will notice that a shift occurred towards studying the basic, big-picture, policy-relevant questions of macroeconomics—e.g., optimal currency areas, bank runs, fads and herding in financial markets, and automatic stabilizers—that have the power to change the course of history. I think there have been two comparable events that shaped the field in this way. As a discipline, macroeconomics was born in response to the Great Depression, giving rise to Keynesianism; the rational-expectations revolution in macroeconomics was born in response to the great inflation on the 1970s.”
Continue reading

Emerging & Frontier Markets Headlines 2012.08.09

Emerging Questions for Emerging Markets — BMI Risk Watchdog

“China has reportedly lost around $4 billion in Libyan investment following the toppling of the Gaddafi regime; it also lost substantial oil holdings in Sudan, an important supplier, when the south ceded to become an independent country last year. Previously, China had ignored Western-led sanctions on the Sudanese government, and when the country split in two, Beijing found itself having to deal with former rebels-turned-government who now viewed China as a hostile sponsor of their former oppressor.” — Asia Times

Wage Riots Spread to Lusaka, Chinese Fear for Safety — Zambia Reports
Continue reading