This is Claire Kallen's Typepad Profile.
Join Typepad and start following Claire Kallen's activity
Join Now!
Already a member? Sign In
Claire Kallen
Recent Activity
I found this paper to be very interesting, this was my first experience with microfinance. The part I was most interested in was the social aspect of investing. Specially women's role. In the paper it said that women, when allowed to invest, were turning large profits of about $14 which is a significant sum considering the average yearly income was much lower. To me this showed that by empowering women it would put money back into the economy as well which is a subject we have discussed a lot in this class and is something I have been researching outside of class for our final paper. It was interesting to see that women would put more money back into social causes when investing as this was what I have also seen in my research for our final paper. Something I was interested in was that women for so long were no trusted with finances but we see here that when it happens it is incredibly beneficial. That was my biggest take away from this paper when it comes to a past issue that was resolved- the issue being women's lack of resources to financial management and the resolution being their empowerment. Looking at the data, it is clear that by increasing the female role in finances that there will be a significant positive change and that is something that will continue if women are given the tools that they need. I think this example especially shows that we need to be constantly changing our social norms in order to have the best outcome possible. That is something that is interesting to compare to environmental concerns today and how we will need to adapt our social norms in order to survive the current climate crisis and other environmental concerns. Overall I found this paper to be very interesting and I enjoyed reading about the different examples and finding the "best practices" when it comes in to investing and loans and the different situations in which loans should be changed.
This paper was a bit hard for me to follow. I feel like it was a lot of technically challenging work that I am not very familiar with so I struggled to understand it at what felt like a high level. From what I could understand it seems like it was focusing on the interconnected relationships between countries and their treasury yields and the rates and their economic activity as a whole. One of the examples given was with higher U.S. rates which would make borrowing more expensive. What I understood from that with these higher rates it makes economic activity harder because later in the article it then says that borrowing is easier in East Asian markets and they are in less debt so it sets them up for better economic success. To further support this, later in the article it says when the U.S.’s interest rates fell that it help aid in their recovery. I’m not quite sure if I understood that correctly but if it did it provides an interesting take on how best to set rates in order to sustain a healthy economy. Then I had the question of if an economy could ever really function with these high rates? With the Cline-Barnes and Kanin-van Kleist papers they suggest to spread interest rates. I’m a bit confused by that but if I understand correctly it is agreeing that rates can’t be very high in order for the economy to thrive and it is better to spread out these rates so that no one country has much higher rates than another? One thing that I was curious about was if countries with high credit ratings are more inclined to come into the market, why would the rates be as critical as they are if the authors are able to make that general of a statement about the demand for the market. I would’ve thought that people who have a strong demand to borrow will borrow regardless of the specific rate. Overall, I took away from paper that the lower interest rates will spark economic activity and also the idea that reforms are very helpful and not having enough of them can harm you like it did in the case of Latin America. There, the reforms not as large and ended up not being as beneficial (at least that is how I understood it). I really struggled with this paper and understanding a lot of the higher level technicals that came with it. I do not feel very confident with my commentary in this response being correct but I did enjoy being challenged to understand this new topic.
Toggle Commented Nov 18, 2021 on ... at Jolly Green General
The part of this paper that I found to be the most interesting was about the 2000 study. It was shocking to me to read that the price of education is going up even though the supply itself is increasing. This means that education is not “winning the race” which was surprising to me because of what we have been studying. However, something I connected this too was on the topic of higher education and how many successful people never attended college or dropped out. Higher education does not always benefit the individual because they have to give up the time and resources to commit to higher education. But, I was surprised that education as a whole was raising in price because you would think as there is more education the price would drop. Later the paper discusses how you have to consider that enrollment in education, specifically higher education, has gone up while the returns have not increased. This is why it is so important to consider all the variables because while the price for education may be high it is because the returns have not changed while the enrollment has. To me, it seems that education has become more available which is good and shows a lot of progress. But with that the way returns are measured should probably change to represent the access to education so that we can see the returns increasing. Overall, this paper was very interesting to see the application of what we have been talking about in class regarding education. I am surprised to see that as education is becoming more common that returns are going down because that is the basis of what we have been working towards is education the population. I think it would be interesting to consider isolating these factors would show us what should be changed in order to better represent the world. After all, that is what we talked about a few weeks ago, models need to be changed and updated.
Toggle Commented Nov 11, 2021 on For Friday's Discussion at Jolly Green General
This article was a very interesting read. As a young woman, it is hard to imagine being treated in the manner described throughout this article. It was very interesting to see that even though women are a huge asset to the economy that they are still not allowed to enter the work force in many countries. What is interesting to me is how poor young girls are treated. The fact that abortion rates are much higher for girls than for boys because families don’t want to raise girls just to have to marry them off later. Girls are not given a chance and this starts even before they are born. Young girls are ignored in many families; they are fed less and many of them do not receive as much of a formal education as young boys. This so frustrating to read for me, girls are not given a fair chance yet it is proven that empowering these young women will result in economic growth. Although this article is hard to read, it is still important to know what is happening in many countries. Even in developed countries the wage gap and sociality normals tell young girls that they are not enough and it is so important to change that way of thinking. This article proves that girls are in fact the key to economic growth and development so they should be treated in-line with that truth.
Toggle Commented Oct 28, 2021 on For Friday's Discussion at Jolly Green General
What is interesting to consider are the parallels between climate and productivity. The article says, “Russia’s permafrost regions and boreal forests are sensitive to changes in temperature that could lead to productivity increases”. In cooler climates the rising temperatures would lead to a warmer climate meaning they could work longer. Later in that same section it talks about the increased risk with thawing giving off more emissions which promotes further complications. On the other hand, as stated later in the article, crop productivity will be negatively affected. Another aspect of productivity to consider is ecosystems. I learned a lot about biodiversity and the roles specimens play in ecosystems and I know that even one small change can throw off the entire balance. When the whole climate system suffers a drastic change as it is now i wonder about the long term implications. The article talks about there are physiological changes to fish with ocean acidification. I wonder about the plants and how they will be affected. Later it says that there will be higher droughts in some areas which would also lead to many problems in ecosystems. The final aspect about productivity effects that I want to discuss is about migration patterns. Because of the rising rate of climate change certain habitats will become unsuitable. This will lead to large scale migration. This will throw off all past ways of live and will mean that serious changes will have to be made to accommodate for these migrations and productivity will most likely suffer. One of the biggest questions I have is will these changes be possible to fix in the future; that has been the largest part of any discussion about climate change. In our last class we discussed that sustainability is possible but the question is about whether or not we will do it. I watched a lecture about climate change last semester and learned that the climate changing is natural but it leads to large shifts in the world we now know. I wonder how quickly we will have to adapt to satisfy these changes. I wonder if it is possible and sustainable for us to live this way and just how many variables need to change in order for this to be possible. This piece gave a lot of interesting insights and examples of how climate change is affecting our world and I really enjoyed learning more about it because this is such an important topic that needs to be talked about more.
Toggle Commented Oct 21, 2021 on For Friday's Discussion at Jolly Green General
The part of this article I want to focus on in my reflection is the way that South Korea’s economic growth strategy alines with what we had discussed in class. South Korea invested in education and human capital to see large shifts in their growth. It was interesting to read that from 1945-1960 primary education enrollment rates increased 3x, secondary schools increased by more than 8x, and higher education increased 10x. To see the aftermath of that change was very cool to show that investing in human capital through education does, in most cases, help promote economic growth. By investing so much in education, South Korea became the best-educated work force of any comparable country at their income level. Of course increasing education was not the only factor that lead to economic growth. It is important to consider foreign involvement as well. Although South Korea’s leader did not want to have a large foreign presence, the deficit was made up for by the aid given by the United States in 1956. Foreign aid and inflated exchange rates are what supported crony capitalism. And at the end of the war, South Korea received a lot of aid from other countries, that was then misallocated causing problems early on. This shows that foreign powers had a lot of control over the growth of South Korea which makes me wonder what would’ve happened with out the aid from these other countries? I do not think South Korea would’ve had the economic growth they did without the help from foreign powers. The influx of foreign aid after the way seemed to made South Korea create a plan to help promote economic growth after witnessing the misallocation of the aid. It is interesting to consider the question of the role foreign powers plan in other economies and what our world would look like without the presence of trade and corporation.
This article was very interesting to me. The authors pose interesting ideas about the institutional barriers and how government intervention can sometimes be unnecessary and result in misallocation, corruption, and instability. The authors also discuss specific examples of countries and where their main financial focuses lie. The one specific example I wanted to focus on was with the study of Côte d’Ivoire. After 1970 Côte d’Ivoire had rapid population growth and a decrease in capital investments. The article says that they were dependent on raw commodities, more specifically cocoa. Over the past 40 years cocoa has become the dominate crop in Côte d’Ivoire. Raw cocoa accounts for 80% of commodity exports, more than 50% of all the exported goods and services and 21% of GDP. It does not seem like it was a good idea to have one crop hold such a stake in the country’s economic health. Cocoa is also a very labor intensive crop, it takes seven years to finish the planting process and the land is not able to be used for other crops. Because of how much investment is involved in farming this crop it is not very profitable. Côte d’Ivoire government policies further complicate this process. The terms of trade had been deteriorating since the 1970s and on top of that, cocoa prices fell international. All of these factors led to failure. There seemed to be a theme throughout the reading that a lot of countries picking one main product to focus on that would end up having too much stake in its financial development. In Kenya they were relaying on petroleum but with two major oil crises they struggled as well. As seen with Côte d’Ivoire it is not a safe option to only relay on one product, especially one that is not very profitable such as cocoa.
Toggle Commented Sep 29, 2021 on For Friday's Discussion at Jolly Green General
I found this article extremely interesting. Reading about different views of modeling- from finding them too simple to finding them too complex and complicated- was very captivating because we spend so much time in economics courses modeling so I enjoyed reading about others’ opinions. The point I want to discuss is the idea that some had, “trouble expressing their ideas in the kind of highly specified models”. I found this quote to be especially interesting because I have learned that you are able to model almost anything with two variables/ factors. This approach to modeling began to unravel the high development theory in the 1950s. The words that stuck out the most to me in describing the high development theory were “persuasive” and “influential”. It is hard for me to believe that something that important was able to become “incomprehensible”. About 30 years later, coming back to it with a “fresh-eye” it was decided that the high development theory really does make a lot of sense. One of the major themes of confusion with the high development theory was that it was hard to get it to fit into a specific simple model. This is where the theme of the differencing views of modeling come into play. As I stated earlier, I believe you can model most relationships between two variables, that is something we have proven in econ courses, so I think there is a way to model the high development theory it is just a bit more complicated, as is later stated in the reading. Overall, I found this article to be captivating and it helped explain a lot of the confusion around the high development theory and the eventual return to it that occurred in the 1980s. I feel much more confident now in my understanding about the relationships between models and the real world. I also enjoyed learning that economics is constantly changing and that even though something may have been written off in the past doesn’t mean it won’t resurface in the future. Sometimes it is best to leave and come back to it with an open mind to find a new way to make it work.
Toggle Commented Sep 22, 2021 on Krugman for Friday at Jolly Green General
To begin, I really enjoyed this reading. This was the first time I have read about both the Millennium Development Goals and the Sustainable Development Goals in depth. I feel that this article did a great job of explaining the fundaments of these programs and was a good place to start for a reader unfamiliar to the topic. Setting goals that are attainable but will also create significant progress is very important in our modern world. Sachs brought up a wide variety or problems facing our world today one of which I thought to be incredibly important was the environmental issues, I have taken two environmental courses and I have learned a lot about the different crises facing our world and it was interesting to see how Sachs cited the environmental issues as something we must fix in order to start making process with our modern development. Sachs made an important point about “fairness”. We must fix our issues with social inclusion to begin reaching our goals, he writes that education has been leading to larger wage gaps between those who had been educated and those who did not have the same opportunities. From this point I begin to wonder about where this leaves women. Sachs points out that we still have a long way to go for gender equality. I would like to point out that women in many lower income countries do not receive nearly as much education as their male peers. The women are not afforded the same opportunities, however little they may be in some cases even for men, which further set them back. If they do not receive an education how will they ever be expected to be able to catch up when society is creating larger and larger gaps between workers with more education and those without? As a young women, these issues really stand out to me and I think that the work Sachs is doing by pointing out the flaws is incredible important in the name of progress. Another interesting point I found was the idea that Sachs posed about technological advances actually causing more harm than it is solving, however he later writes that technological advances and economic growth are what are making meeting the SDG goals possible. It is interesting to consider the positive and negative sides of something as prominent as technology. The success of certain parts of the MDGs and the goals of the SDGs are what will help us continue to try and save our world and leave it prospering for generations to come. I found it very helpful in the concluding portions of the article where Sachs pointed out the lessons to be learned from the MDGs and what should be changed in the SDGs, it is important to order stand the short-comings of the MDGs but also to acknowledge what worked. Overall, I think Sachs did a very good job of presenting the facts as well as explaining opinions, I believe strongly that implementing and implementing SDGs well are what we must do in order to reach prosperity and maintain it for generations to come.
Claire Kallen is now following The Typepad Team
Sep 16, 2021