Tag Archives: Economic Growth

The East versus the West – Development, Hubris and Catch-up

Why the West Rules - For Now -  Ian Morris   Big History, Civilisation Development, USA v. China

Ian Morris is a historian with an interest in archaeology who goes beyond a traditional historical method that relies on written records. He uses carbon dating techniques, DNA and chemical samples from a range of archaeological sites in tandem with statistical records from the more recent past to construct an intriguing index of social development over 20,000 years. The index is made data on caloric energy inputs (as a proxy for standard of living), city size (as a proxy for organizational complexity), information and communication technology (as a proxy for trading capability), and military size (as a proxy for political power).

Continue reading...

Debt, Demographics and the Distribution of Income: new challenges for monetary policy

Debt, Demographics and the Distribution of Income: new challenges for monetary policy -  Gertjan Vlieghe   Monetary Policy, Interest Rates, Macroeconomics

Monetary policies all over the world are such that interest rates are at their lowest rate ever. In some economies, the rate is negative so that it costs to keep money in banks rather than “under the bed”. This is unprecedented! Despite this, borrowing for new investment is weak – with implications on future productivity and economic growth.

The low interest rates mean that there is little scope to reduce them further, which in turn means that monetary authorities have little scope for managing economic activity – employment, production and investment.

Continue reading...