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What's wrong with this number?
"In the 2006-7 school year ... international students’ net contribution to the United States economy was nearly $14.5 billion," reports the New York Times, citing a just-released study by the Institute of International Education. The IIE report itself states: "International students contribute a...
Raf
raf
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Is "good governance" an end or a means?
And does it matter? Here are the opening paragraphs of my contribution to a panel discussion on governance tomorrow at the World Bank: A deep insight that has emerged out of the disappointments of the Washington Consensus is that successful policy reform is at its core governance reform. Refor...
Raf
raf
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Rapping along to supply and demand
Who says economists can't be cool and learning economics fun? My former assistant Robbie Mitchell is a co-founder of a company that produces educational rap. And they're bustin' out rhymes about economics (as my daughters put it). Check it out, you won't be disappointed. If you are having...
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Why do George and I disagree?
The disagreement between George Borjas and me on the desirability of guest workers is an interesting one to expand upon, not because this will change either one of our minds, but because it may help others evaluate their own views. So here are a few points. 1. First, George and I appear to be mo...
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raf
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Beating a not-so-dead horse on food prices
A "loyal reader" writes Martin Wolf of the FT has written a whole article arguing that: '... higher food prices have powerful distributional effects: they hurt the poorest the most' without even a mention of the basic economics in your September post on food prices: 'The real answer of course i...
Raf
raf
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Ending famine, by ignoring the experts?
by Maggie McMillan, guest blogger According to the NYT, the experts (aka the World Bank) have been pressing African governments to get rid of fertilizer subsidies. This, the article claims, has been a big mistake. The experience of Malawi proves it: farmers in Malawi experienced record harvests ...
Raf
raf
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Be a man and take it on the chin
... is Ricardo Hausmann's advice to monetary and fiscal authorities in the U.S. I like especially the opening sentence: The same voices that supported tough macroeconomic policies to deal with the excesses of spending and borrowing in east Asia, Russia and Latin America are today pushing for a...
Raf
raf
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The orthodox, the heretic, and the heterodox
The New York Times catches on to an internet debate: For many economists, questioning free-market orthodoxy is akin to expressing a belief in intelligent design at a Darwin convention: Those who doubt the naturally beneficial workings of the market are considered either deluded or crazy. Well th...
Raf
raf
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How will Costa Rica vote on trade?
Costa Rican voters are deciding in a referendum today whether to participate in a U.S.-led regional trade agreement, CAFTA. Proponents tout the benefits on enhanced market access in the U.S., while opponents fret about provisions that will require changes in domestic regulations (in telecomms an...
Raf
raf
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Joe and I
Brad DeLong reports that a student of his wants to know the difference, if any, between Joe Stiglitz's views on development and mine. Frankly, I had not thought about this quite in this way before, so the question set me thinking. I know that I have shaken my head many times at things that Joe h...
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raf
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Guns, drugs, and financial innovation
Is there any difference between these, asks my latest column for Project Syndicate. All three provide private benefits (sometimes), but can cause havoc for the rest of us. Why do we approach regulation in each area so differently? (And how does Mark Thoma beat me to it every time, even when it i...
Raf
raf
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Some investors are more equal than others
Say you are a foreign investor that invests in a developing country, which is subsequently hit by a deep financial crisis. As a new government tries to get its house in order, it undertakes a number of emergency measures such as freezing bank deposits, not paying wages and pensions, and freezin...
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Phew!
It turns out that the man who brought down the world economy studied not finance or economics--but political science! Now my colleagues and I can go out in public again... (HT: Andrew Leonard)
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raf
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Mr. Lin goes to Washington
Justin Lin is apparently poised to become the World Bank's next chief economist, following the departure of Francois Bourguignon. LIn is an inspired choice for a number of reasons. First and foremost, this is the first time that the Bank has appointed an economist from a developing world. Secon...
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raf
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Markets without states?
I say it is impossible. But in a comment on a previous post, Justin Rietz argues not at all. I read your paper "Feasible Globalization" and I believe the premises and therefore the conclusions of the paper (and hence your post) are flawed. In your paper, you state that many non-market institut...
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raf
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China's billionaires
Forbes has put out its latest list of China's wealthiest men and women. Here is something that initially surprised me when I looked at who is on the list. We think of China as a manufacturing powerhouse, with growth being led by an undervalued currency and a phenomenal export performance. So you...
Raf
raf
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Misplaced concern over sovereign wealth funds
Why are normally cool heads so worked up over sovereign wealth funds and the possibility that foreign governments may come to own substantial shares in domestic companies? Recently, Larry Summers declared that this issue is "profound and goes to the nature of global capitalism." The logic of t...
Raf
raf
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Trade and the great divergence
Opening up to international trade raises the return to skills in advanced economies and reduces it in the less advanced ones, according to the standard factor-endowments story. If human capital accumulation in turn depends on these returns to skills, trade should enhance human capital accumulati...
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raf
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Fact Check, Reality Check? New GDP Data
by Arvind Subramanian, guest blogger Why did nearly 15 years have to elapse before GDP data were updated? The World Bank’s statisticians have changed the economic facts. Under these circumstances, Keynes, the economist, would have us change our opinions, while the great scientist, Einstein, woul...
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raf
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Fear mongering by free traders
Here is what I do not understand. Why is it that anyone who says that the gains from the next trade agreement are not huge, that there are real social and distributional issues we need to confront before we strike the next trade deal, and that perhaps we need to rethink the basis of the multila...
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Graduate programs in development
Chris Blattman is one of the first graduates of the MPAID program and now maintains a very interesting blog on development, with special focus on Africa. Following his MPAID, Chris did a Ph.D. in economics at Berkeley and is now on his way to Yale as assistant professor of economics and politica...
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raf
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The New York Times gets it wrong on immigration
The NYT declares that the temporary worker program contained in the immigration deal reached in the U.S. Senate is nothing less than "awful." The agreement fails most dismally in its temporary worker program. “Temporary means temporary” has been a Republican mantra, motivated by the thinly disgu...
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Fair trade: savior or ruse?
Mexican coffee farmers in Chiapas have raised their incomes while enhancing the environment thanks to "fair trade," according to the NYT. Meanwhile consumers can sip their coffee knowing that they are contributing to alleviating poverty and safefguarding the environment. Seems like a win-win, ...
Raf
raf
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The NYT doesn't get it on trade
The New York Times bemoans the lack of support that the existing trade regime gets from the field of Democratic presidential candidates: Many Americans are experiencing economic anxiety. Wages for most workers are going nowhere. It is a sad fact that despite enormous gains in productivity over t...
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raf
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The tyranny of methodological consensus in development economics
by Murat Iyigun, guest blogger Listening to Angus Deaton’s dead-on critique of the current state of the literature on health and development at an AEA session this past weekend, I could not help but think about the costs and benefits of methodology fads in our profession in general, and growth &...
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