Economic Policy

Challenge of Europe

Session at Bretton Woods Conference
Sunday, April 10, 2011

Optimal Currency Areas and Governance: The Challenge of Europe Read more

Giovanni Dosi: Combining Schumpeter and Keynes to Boost Innovation

What Schumpeter and Keynes Knew but Standard Macroeconomics Has Forgotten

Many people would not think of putting Joseph Schumpeter and John Maynard Keynes in the same economic framework, but Giovanni Dosi believes the insights of both are needed to fully understand how to boost innovation in an economy. Dosi, director of the Laboratory of Economics and Management (ELM) in Italy, makes the case in this INET Interview that Schumpeterian innovation must be combined with Keynesian demand management to sustain economic growth over time.

Dosi, who also is a professor at the Sant'Anna School of Advanced Studies in Italy, is fascinated in general by the problems of coordination in systems characterized by endogenous innovation, or innovation from within the system itself. He also thinks that the biggest challenge for the economics profession is to develop microfoundations for macroeconomics. In both these overarching pursuits, both Schumpeter and Keynes provide key insights.

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Political Economy of Structural Adjustment

Session at Bretton Woods Conference
Saturday, April 9, 2011

The Political Economy of Structural Adjustment: Understanding the Obstacles to Cooperation

Richard McGregor, Deputy News Editor at the Financial Times, introduced the panelists and moderated the ensuing discussion. Read more

Global Markets and Nation States

Session at Bretton Woods Conference
Saturday, April 9, 2011

Sovereignty and Institutional Design in the Global Age: The Global Market and the Nation States Read more

Raghuram Rajan - Delineating the Role of Government

In INET's full interview with Raghuram Rajan, he discusses his book "Fault Lines: How Hidden Fractures Sill Threaten the World Economy;" as well as the intersection of government and the economy and China's upcoming challenges.

 

China's Challenge: Opening the Economy - Raghuram Rajan

In part 5 of INET's interview with Raghuram Rajan he discusses the convertibility of the RMB, and how vested interests of China's state-owned enterprises prevent the economy from shifting towards domestic consumption.

 

The Need for Economist "GPs" - Raghuram Rajan

In part 4 of INET's interview with Raghuram Rajan he criticizes the narrow focus of most economists: "Just like in medicine: you have to have experts in each area, but you also need general practitioners - to integrate. I think we devalued the general practitioner."

When the Slogans Stop Working - Raghuram Rajan

In part 3 of INET's interview, Raghuram Rajan says: "The left and the right have a common diagnosis of the problem: the government is captured by big business. Marx said 'Get rid of big buiness.' Stigler said 'Get rid of government.'" But in fact they need to work together, he says, and the task is to delineate the respective responsibilities. Read more

Manipulating Government's Good Intentions - Raghuram Rajan

In part 2 of INET's interview, Raghuram Rajan acknowledges that "government is there to soften the rough edges of capitalism." But - despite good intentions - the government is prone to manipulation by private interests, he warns.

 

Three Major Economic Fault Lines - Raghuram Rajan

In part 1 of INET's interview with Raghuram Rajan he connects rising inequality and debt, government stimulus programs, and international capital mobility to explain the crisis and fragility in the world economy. Read more