I have a couple of links that tie in with the past week’s lecture on trends in the world economy and other that are related to the upcoming topic of drivers of growth:
- After some data revisions there is more evidence of the weak performance of the US economy. This goes along with criticism of the Fed not doing enough and we’ll have a look at this again when we discuss monetary policy later on.
- For the Eurozone the FT outlines the policy options that the ECB has for saving Greece, Spain and the euro. Giving the ESM a banking license and is listed as the least likely.
- On the next topic of the drivers of growth, there is a new Dina Rodrik paper on unconditional convergence in manufacturing. I’ll discuss this one in class on Friday. Marginal Revolution takes away the following conclusion from the paper:
Almost all of the growth miracles of the last 60 years were based on rapid industrialization. Today, technological changes and global competition are fostering rapid de-industrialization (in terms of employment shares) almost everywhere. This makes me wonder whether the kind of rapid growth experienced by countries like South Korea, Taiwan, and China will ever become possible elsewhere.
- Finally, Helen Zille writes in the FT about what would make South Africa’s economy roar.
Note, you have to register to read the FT articles, but there is a free, 8 articles per 30 days, option.