Government & Politics
The Hidden Cost of Privatization
Jun 13, 2017
Why some goods and services should stay in the public domain
Did Young Voters Swing the 2017 UK General Election Result?
Jun 12, 2017
This blog post looks at the aggregate picture and collates some micro evidence in a more robust estimating framework to shed light on this question.
Decolonizing Africa? The Economic History of Development
YSI Africa Convening 2017
Jun 8–9, 2017
The Young Scholars Initiative and the University of the Free State, SA, invite young scholars to attend the first YSI Africa conference.
Trento Festival of Economics
YSI Europe Convening 2017
Jun 1–4, 2017
The Young Scholars Initiative and its working groups will be hosting meetings and discussions in and around the 2017 Trento Festival of Economics.
Mexico, NAFTA, and the Future of the North American Economy
May 30, 2017 | 04:00—05:30
A discussion featuring Kenneth Smith, Head of the Trade and NAFTA Office of the Ministry of the Economy of Mexico, and Jay Pelosky, Principal of Pelosky Global Strategies.
Skills Workshop at the EU Parliament
Annual Meeting of the Finance, Law, and Economics Working Group
May 29–30, 2017
This two-day skills workshop / annual meeting of the Finance, Law, and Economics Working Group (FLE) aims to connect participants with politicians (MEP), lobbyists, NGOs, and practitioners working in fields related to law and finance. It will comprise workshops and visits with representatives, which will facilitate exchanges between academia and politics. Participants will gain fresh insights into the decision-making and lobbying processes in Brussels, allowing them to translate their ideas into actions and create a stronger social impact.
The New New Deal
May 26, 2017
Globalization has fallen into disrepute; the myth of the prosperity and happiness-generating free market has been dispelled. A visionary concept that provides guidance and direction is required now.
The New Normal
May 19, 2017
Demand, Secular Stagnation and the Vanishing Middle-Class
Working Paper Series
The New Normal: Demand, Secular Stagnation and the Vanishing Middle-Class
The U.S. economy is widely diagnosed with two ‘diseases’: a secular stagnation of potential U.S. growth, and rising income and job polarization. The two diseases have a common root inthe demand shortfall, originating from the ‘unbalanced’ growth between technologically ‘dynamic’ and ‘stagnant’ sectors.
It’s Not Just Profit Wrecking American Healthcare
May 15, 2017
A look at America’s strange and dangerous approach to medicine, and how to fix it
Working Paper Series
The Political Economy of Mass Incarceration: An Analytical Model
This paper presents a model of mass incarceration in the United States, which has the largest proportion of its population imprisoned among advanced countries.
India's Economic Challenges
May 9, 2017 | 04:00—05:30
A discussion with Kaushik Basu, Professor of Economics and the C. Marks Professor of International Studies at Cornell University and former Senior Vice President and Chief Economist of the World Bank.
The Push and Pull of Inequality and Identity
May 3, 2017
Professor Dutt discusses how group identity is key to addressing inequality and how inequality can disrupt group identity.
America is Regressing into a Developing Nation for Most People
Apr 20, 2017
A new book by economist Peter Temin finds that the U.S. is no longer one country, but dividing into two separate economic and political worlds
PhD Workshop at the Fourth Nordic Post-Keynesian Conference
Apr 19–21, 2017
The YSI Keynesian Economics Working Group is co-hosting a PhD seminar at the Nordic Post-Keynesian Conference entitled “Economics at the Edge”.
Against False Arrogance of Economic Knowledge
Apr 17, 2017
“The humility to accept that economic propositions cannot be universal would save us from self-defeating arrogance.” Economist Amit Bhaduri adds his perspective to our Experts on Trial discussion.
The Moral Burden on Economists
Apr 13, 2017
In his 2017 presidential address to the National Economic Association, Professor Darrick Hamilton warned that treating economics as a morally neutral ‘science’, and the discipline’s limited attention to structural barriers and overemphasis individual agency, has resulted in bad economics, and bad policy particularly as it relates to racial disparity.
Fiscal Union, Social Europe: Synergies and Tensions
Apr 13–14, 2017
The YSI Political Economy of Europe Working Group invites young scholars to partake in a Research Seminar aiming to investigate the interplay between fiscal policy in the European Union and domestic social policies of its member states.
Making Innovation Work for China and other Developing Countries
Apr 12, 2017
Along the entire “innovation chain” — from research and development, to production and commercialization — government and private sectors have very different roles to play.
The Outskirts of Hope: Poverty in America
Apr 4, 2017
The “War on Poverty,” and the impact of public policy
Hungary Is Facing Dangerous Amendments to Its Education Law
Apr 3, 2017
The Institute for New Economic Thinking, a global network of distinguished economists, is deeply concerned by the news of proposed legislation in Hungary’s National Assembly that would prevent the free functioning of the Central European University.
The paradoxes of fiscal austerity in Brazil
Mar 30, 2017
Brazil’s current economic scenario does not resemble the emerging economy that until recently fueled the optimism of analysts and investors.
A Public Comment on the SEC Pay Ratio Disclosure Rule
Mar 29, 2017
In this comment, we explain our objections to the SEC’s current formulation of the Pay Ratio Disclosure Rule on each of three grounds: the erroneous estimation of CEO pay; the unclear specification of the “median” worker; and the risk of normalizing a pay ratio that is far too high. Then we present the latest data on the remuneration of the 500 highest-paid CEOs in the United States, demonstrating the way in which the SEC’s measure of CEO pay that enters into the CEO-to-median-worker pay ratio tends to systematically underestimate actual executive pay.
Mortality Crisis Redux: The Economics of Despair
Mar 27, 2017
The health crisis afflicting working-class Americans recalls similar symptoms in Russia following the collapse of communism
Geo-economic Trends and the State of Economies in the Middle East: An Israeli Perspective
Mar 27, 2017 | 04:00—05:30
A discussion with Shahar Shelef, Director of The Economic and Strategic Affairs Department, Center for Policy Research at the Israeli Ministry of Foreign Affairs.
Women Foot the Bill for Economic Growth, Parity Requires Social Investment
Mar 22, 2017
Pursuing equality while growing the economy requires reframing social spending as a form of investment.
Dismantling Public Education: Turning Ideology into Gold
Mar 1, 2017
Policies based on faith in the “market” as a principle of social organization have wrought havoc with a founding principle of American democracy
China's Wage Growth: How Fast Is the Gain and What Does It Mean?
Feb 28, 2017
New findings show that hourly wage-rates in China are higher than in middle-income countries and are approaching the levels of Greece and Portugal
Can “It” Happen Again? Defining the Battlefield for a Theoretical Revolution in Economics
Feb 27, 2017
As part of our “Experts on Trial Series”, Antonella Palumbo argues for stripping away ‘scientific’ shibboleths that mask social and political choices
China’s Weapons of Trade War
Feb 25, 2017
A trade war would undoubtedly hurt both sides. But there is reason to believe that the US has more to lose. If nothing else, the Chinese seem to know precisely which weapons they have available to them. China could stop purchasing US aircraft, impose an embargo.
INET Guide to the 2017 EEA MeetingConference
Feb 23–26, 2017
A reference guide to all Institute for New Economic Thinking (INET) community presentations at the Eastern Economic Association’s (EEA) 2017 annual meeting
Race Has a Regional Dimension in America’s Political Economy
Feb 20, 2017
Stanford economic historian Professor Gavin Wright, addressing the Institute’s conference on the economics of race, argues that the conditions facing the children of the great migration from the South are very different to the conditions for the children of those who stayed behind.
China’s Economic Challenges May Soon Include Inequality
Feb 14, 2017
Research by Thomas Piketty, partly funded by the Institute, shows that wealth and income gaps in China are now larger than Europe’s, and approaching those of the US
Euroland: Will the Netherlands be the next domino to fall?
Feb 13, 2017
Austerity has nurtured resentments that will likely make the populist right PVV the biggest winner in the March 15 election — but without the majority or the allies needed to govern
Carbon Dividends: The Bipartisan Key to Climate Policy?
Feb 13, 2017
The practical question in Washington today is not whether regulations will go, but whether anything will replace them
At Sea Without an Anchor
Feb 10, 2017
A presentation from The Economics of Post-Factual Democracy, the first annual conference of The Center for Information and Bubble Studies (CIBS) at The University of Copenhagen
Jayadev: TPP is Dead, but its Legacy Lives On
Feb 10, 2017
Institute scholar Arjun Jayadev argues that while TPP is dead, its damaging legacy on intellectual property rights is likely to shape future bilateral trade agreements
What Kind of Brexit, What Kind of European Union?
Feb 9, 2017 | 04:00—05:30
A discussion on Brexit with Iain Begg, Professorial Research Fellow at the European Institute, London School of Economics.
The economist as an expert: a prince, a servant or a citizen?
Feb 8, 2017
In his contribution to our ongoing series “Experts on Trial”, Alessandro Roncaglia argues that viewing economists as princes or servants of power is inherently authoritarian. We should instead see the economist as a socially and politically engaged citizen
Why Greenspan Knew, But Didn’t Act
Feb 8, 2017
Mallaby’s research shows that Greenspan knew more about the looming perils than people realize.
Zero Interest Rates in EU: The Myth of the Poor German Saver
Feb 7, 2017
Panic over the impact on German savers of low interest rates and looming inflation neglects to mention that very few Germans are saving much
'People Have Had Enough of Experts'
Feb 6, 2017
As part of our ongoing symposium “Experts on Trial”, Professor Sheila Dow argues that if voters have grown contemptuous of economists’ expertise, that’s because economics has been misrepresented as a technical subject separate from politics and moral judgments
Adair Turner on the Liquidity Risks of ETFs
Feb 5, 2017
Turner discusses The Economist’s Society the liquidity risks posed by Exchange Traded Funds.
Is Inequality a Political Choice?
Feb 3, 2017
Research by INET-affiliated scholars shows the US lags far behind its peers on inclusive growth, suggesting inequality is not an inevitable consequence of globalization and technology
Three Economic Surprises to Watch for in 2017
Feb 2, 2017
Institute Governing Board member Anatole Kaletsky argues that the Trump Administration’s policies will boost inflation and spur interest-hikes as well as a stronger dollar more rapidly than many expect, but that the European Union’s economy is on the mend
To Save Capitalism, Make it Work for Average Folks
Feb 1, 2017
Smick argues that distortions of capitalism have fed populist rebellion, and that reviving a capitalism that offers opportunity for average people to increase their earnings is an urgent priority if America’s political economy is to be stabilized.
China’s Economic Management at the Beginning of the Trump Era: Turbulence Ahead or Steady-As-You-Go
Feb 1, 2017 | 06:00—07:30
A discussion on China’s economic management at the beginning of the Trump era featuring Leland R. Miller, Co-founder and CEO of the China Beige Book.
Brunnermeier: Europe’s Future Will Be Settled By a Battle of Ideas
Jan 25, 2017
A conflict which revolves around key economic policy differences on questions such as rules vs. discretion, solidarity vs. liability, liquidity vs. solvency and austerity vs. stimulus.
Jan 24, 2017
Donald Trump’s presidency is a symptom of an interregnum between economic orders – a period that will result in a new balance between state and market. While his administration’s economic policies are unlikely to provide the right answer, they may at least show the world what not to do.
Johnson: Elites Eying the Exits Signals America's Crisis
Jan 23, 2017
Institute President Rob Johnson interviewed by the New Yorker on hedge-fund managers and the market for air strips in New Zealand
The Jobs Legacy of the Obama Presidency
Jan 19, 2017
Viewed in historical context, the weak recovery from the 2008 crisis has been slow and painful, but a sub-5% unemployment rate and healthy job and wage growth will be among the most important legacies Obama leaves to the next president
The Economics of the Affordable Care Act
Jan 17, 2017
Any effort to replace the Affordable Care Act will be confronted by the same structural imbalances in the health care economy that the legislation’s authors faced
Conflicts of Interest? Maybe Congress Should Look in the Mirror
Jan 11, 2017
New evidence shows personal wealth interests drive Congressional votes
Ferguson: Monetary Policy Can't Levitate a Broken Economy
Jan 9, 2017
As part of an International Economy symposium, INET Research Director Tom Ferguson assessed the challenge facing central bankers through the lens of the missing virtues of Dorothy’s travel companions in the Wizard of Oz
America’s Failures of Representation and Prospects for Democracy
Jan 6, 2017
A concentration of wealth and power that created a twin crisis of representation — in politics, and in expertise — set the stage for Donald Trump’s election victory, and has put America’s founding principles at risk
Race May be Pseudo-Science, But Economists Ignore it at their Peril
Jan 6, 2017
Presented by Professor Dan O’Flaherty at the Institute’s conference on the economics of race in Detroit on 11 November, 2016
INET's Turner Warns Against 'Fantasy' of Stimulating Economies Through Financial Deregulation
Jan 5, 2017
There is no good case for major deregulation of the US financial sector, warns INET Board Chairman Adair Turner, and any backsliding by a Trump administration on banks’ capital requirements instituted globally after 2008 will be very dangerous
Robots, Universal Basic Income, and the Welfare State
Jan 5, 2017
Evidence thus far questions the assumption that robotics are eliminating jobs. INET Senior Vice President for Programs Rick McGahey says the UBI debate should focus on the long-term weakening of labor’s bargaining power
A Socialist Market Economy With Chinese Contradictions
Jan 3, 2017
Beijing’s leaders face a critical dilemma over a credit boom that imperils China’s prospects for a smooth transition to a sustainable economic path
A Moral Challenge to Economists
Jan 1, 2017
Extract from the keynote speech by the Rev. Dr. William Barber III at the Institute for New Economic Thinking conference on race and economics in Detroit on November 11
INET Research in a Year of Living Dangerously
Dec 29, 2016
Notes from the Institute’s Director of Research on some significant papers and contributions produced in 2016 under the INET rubric
Stiglitz: Bad News Awaits America's Workers
Dec 28, 2016
Campaign promises aside, the policies favored by President-elect Donal Trump are likely to bring more pain than gain to working-class Americans
Garza Parsing America’s Backlash
Dec 27, 2016
Black Lives Matter movement co-founder Alicia Garza, addressing the Institute’s Detroit conference on the economics of race, placed the turmoil created by the 2016 election in the context of a backlash against the gains made by social movements challenging racial and social injustice. She argued that those movements now need, more than ever, “to show up for one another” at a local level to protect those gains
Reality Check: What Economists Talk About When They Talk About the Chinese Economy
Dec 23, 2016
Beneath the heated political rhetoric over U.S.-China economic ties lies an increasingly complex reality
If CEO Pay Was Measured Properly, It Would Look Even More Outrageous
Dec 22, 2016
Research funded by the Institute for New Economic Thinking has revealed that the SEC reports executive compensation using a formula that routinely undercounts it
Chanos: Is a big change underway in global capitalism?
Dec 21, 2016
Milwaukee-born short-seller Jim Chanos, founder and managing partner of New York-based Kynikos Associates, teaches University of Wisconsin and Yale business students about corporate fraud. During his life and career, he has witnessed seismic shifts in economic thinking and the relationship between labor and capital. Chanos shares his thoughts on the world emerging from the election of Donald Trump and the tumultuous political events of 2016.
Contemplating the Age of Hyper-Uncertainty
Dec 19, 2016
In the 40th anniversary year of John Kenneth Galbraith’s Age of Uncertainty, the 1970s look remarkably stable in comparison with today’s turbulent world
Many Politicians Voting for the TARP Bailout Protected Their Own Wealth
Dec 16, 2016
Amid heightened focus on conflicts of interests, new research shows how legislators’ votes on the 2008 bank bailout tracked with the exposure to peril of their personal stock portfolios
The Geopolitics of Populism
Dec 13, 2016
The big question in Asian countries right now is what lesson to take from Donald Trump’s victory in the United States’ presidential election, and from the United Kingdom’s Brexit referendum, in which British voters opted to leave the European Union. Unfortunately, the focus is not where it should be: geopolitical change.
The Trump Agenda and the Economic and Investment Outlook for 2017
Dec 13, 2016 | 04:00—05:30
A discussion on President-elect Trump’s economic agenda and its implications for the U.S. and world economies.
Heckman Study: Investment in Early Childhood Education Yields Substantial Gains for the Economy
Dec 12, 2016
New research by Nobel Laureate and Institute for New Economic Thinking Advisory Board member James Heckman finds strong economic gains from birth-to-five education programs
Capitalism in the Time of Trump?
Dec 8, 2016
As the world turns upside down, Mariana Mazzucato discusses how to shape an economy that works for everyone
Eurozone Crisis Was Caused More By Reckless Lending Than By Reckless Spending
Dec 5, 2016
Remedies have failed to produced growth and reduce indebtedness because they’re focused on protecting toxic behavior by banks in Europe’s core countries
Volcker: Tackle the Unfinished Business of 2008
Dec 5, 2016
The Volcker Alliance has launched a series of new papers with important proposals for reforming financial regulations to guard against future crises
Stiglitz: Democratic Party Needs New Economic Thinking
Dec 4, 2016
Nobel laureate argues that the party’s adherence to neoliberal orthodoxy has hurt its prospects
The Retreat from Hyper-Globalization
Dec 1, 2016
Flows of goods and services, people and capital have overwhelmed the ability of political processes to accommodate them
Will Trump Bring Neoliberalism’s Apocalypse, or Merely a New Iteration?
Nov 30, 2016
Real existing neoliberalism as a set of social facts distinct from a purist ideology has proven remarkably adaptable and politically resilient
Trump’s Win is a Warning: Europe Urgently Needs a New Deal
Nov 30, 2016
President Franklin D. Roosevelt’s policies allowed the United States to avoid the perils of right-wing populism that plunged Europe into war in the 1930s — Europe should learn from his example
Bracing for Trumponomics
Nov 29, 2016
What we’re reading: Some analysts expect dramatic changes and a short-term boost to the US economy, others predict continuity — and see Trump’s election reflecting a sea change in the global order
India: Demonetization and its Discontents
Nov 28, 2016
By suddenly eliminating two widely used bank notes, India’s government risks undermining public confidence in the basic means of exchange
Trump Election and the Future of U.S. Global Leadership
Nov 28, 2016
Surviving the geopolitical and economic challenges of the coming years requires a world order less vulnerable to the vagaries of U.S. elections
Trumpism Has Dealt a Mortal Blow to Orthodox Economics and ‘Social Science’
Nov 23, 2016
How orthodox economics paved the way for the political shocks of 2016
Economists and Trump: Straight Talk on Trade
Nov 20, 2016
By suppressing important questions in favor of being cheerleaders for globalization, economists failed to influence the public conversation
Why is Economics Still Largely a White Male Preserve?
Nov 17, 2016
How economics underperforms in diversity, and some potential remedies
Trade Liberalization After the U.S. Election
Nov 16, 2016
The TPP is dead, as is the assumption that future free-trade agreements can be negotiated by experts alone
Why Economic Recovery Requires Rethinking Capitalism
Nov 15, 2016
Mission-oriented public investment is vital to spur a revival of private-sector investment
Lazonick links stock buybacks to America’s jobs challenge
Nov 4, 2016
In an Al Jazeera documentary “In Search of the Great American Job”, Institute scholar William Lazonick offers some arch insights into the relationship between financialization — particularly the “shareholder value” ideology in corporations, which drives the transfer of profits to shareholders through stock buybacks — and job creation and inequality.
The World Economy’s Growing Debt Burden
Nov 2, 2016 | 04:00—05:30
A conversation with Richard Vague, Managing Partner at Gabriel Investments and Chairman of the Governor’s Woods Foundation.
Working Paper Series
The EuroZone “Debt” Crisis: Another “Center” – “Periphery” Crisis Under Financial Globalization?
This paper analyzes the Euro crisis in light of the experience of center-periphery relations over the last 40 years of renewed financial globalization.
Inequality As Policy: Selective Trade Protectionism Favors Higher Earners
Oct 27, 2016
Offshoring manufacturing may have hurt many working people in America, but professionals and intellectual property have been robustly protected
Yellen Challenges Economists Amid Elusive Great Recovery
Oct 24, 2016
Like the Great Depression and the stagflation of the ’70s, the anemic growth of the U.S. economy can’t be understood or remedied without changes in economists’ thinking
Clinton Likely to Win, But Struggle in 2020 Unless She Changes Course
Oct 20, 2016
Institute for New Economic Thinking President Robert Johnson, in an appearance of the CNN International show Quest Means Business, warns that the anger of Trump’s supporters is unlikely to ebb absent significant economic and political changes — and that this anger could be more successfully marshaled by a more skilled and sophisticated Republican challenger four years from now.
Working Paper Series
The Personal Wealth Interests of Politicians and the Stabilization of Financial Markets
We examine whether personal wealth interests affect politicians’ decisions about stabilizing financial markets.
Piecing Together a Paradigm
Oct 19–22, 2016
New approaches are being developed, but efforts are fragmented and need to be brought together if we hope to piece together a paradigm.
Here’s What Economists Don’t Understand About Race
Oct 18, 2016
William Darity, Jr. has a new key to unlocking the mystery of inequality: stratification economics.
Unemployment Insurance Extension During Great Recession Did Not Destroy Jobs
Oct 13, 2016
Social safety nets don’t always need to come with a dark side
Investigating ‘Secular Stagnation’
Oct 13, 2016
Institute for New Economic Thinking launches a far-reaching research effort into causes and potential remedies for the low-to-no-growth malaise afflicting many of the world’s leading economies
New Nationalist Challenges to Globalization: The Good, Bad, and Ugly
Oct 13, 2016 | 06:00—07:30
A conversation with Robert Johnson, President of the Institute for New Economic Thinking, former Managing Director for Soros Fund Management and former Chief Economist of the US Senate Banking Committee.
The Dangers of Financialization
Oct 10, 2016
The financial system no longer funds new ideas and projects — only about 15 percent of the money coming out of financial institutions goes into business investment; the rest is spent buying and selling existing financial instruments.
Getting to Grips with the Trump Phenomenon
Oct 5, 2016
The media has failed ask basic questions about the economic thinking — and business record — of Republican presidential nominee Donald Trump, says Pulitzer-prize-winning journalist David Cay Johnston, author of The Making of Donald Trump.