economic growth
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Examining Latin America’s ‘puzzle’ of low growth
Why do Latin American countries remain mired in sluggish economic growth? Economists have addressed the question with reams of analysis, but the answer is simple: low productivity. That in turn, has been caused by government involvement in the economy that has stifled competition and innovation. The real puzzle is what it will take for the region to change course.
Restarting economies: Benefits of the bottom-up approach
Restarting an economy is much more difficult and complicated than shutting one down. So far, countries that have used a bottom-up approach, where businesses are allowed to decide for themselves how to meet health requirements, are faring better than those trying to micromanage the reopening from the top down. The ...
Post-Covid recovery is not the main challenge ahead
The statistics describing the condition of the world economy three months after the lockdowns seem reassuring: We have not had a V-shaped recovery but GDP growth in the second part of 2020 appears to be firming up and predictions for 2021 are optimistic. However, trouble is brewing in labor markets.
A Swiss answer to the Covid-19 crisis: Focus on liquidity
Switzerland devised an ingenious way to throw a lifeline to its enterprises during the pandemic-induced crisis. Its “liquidity facility” targets the core segment of the economy, relies on business owners’ sense of responsibility and does not burden the country’s public finances with intolerable debt.
Relevance beyond the crisis: Growth after the lockdown
The economic consequences of the coronavirus mostly derive from lockdowns. Shutting down production, especially, is responsible for the downturn. The shock has kept people from spending, of course – but only temporarily. Saving now is only spending put off for another day. Policies intended to discourage that saving could backfire. ...
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