Tuesday, September 4, 2012

On Time Magazine

As UN economist Ugo Panizza, one of the authors of the study, explains:
“Our findings show that there can be “too much” finance. While [opponents of regulation like Alan] Greenspan argued that less credit may hurt our future standard of living, our results indicate that, in countries with very large financial sectors, regulatory policies that reduce the size of the financial sector may have a positive effect on economic growth.”

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Thursday, July 5, 2012

Troppa Finanza?

Il nostro articolo "Too Much Finance?" e' uscito come IMF Working Paper ed e' stato notato in alcuni siti italiani:

Il Fatto Quotidiano (i commenti sono bellissimi)
L'Osservatore Romano (?)
Rinascita (che parte con una discussione su usurai, asini e vacche)
Il Cambiamento (con delle belle teorie sul complotto neoliberale)

La cosa interessante e' che la copertina del paper dice:

This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.

Ma alcuni siti citano il nostro lavoro come "un rapporto del FMI" senza neanche fare il nome degli autori. Neanche l'Economist aveva fatto una cosa simile quando ha discusso il nostro paper sui costi del default.
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Monday, April 23, 2012

Our public debt and growth paper on VOX

Countries with high public debt tend to grow slowly – a correlation often used to justify austerity. This column presents new evidence challenging this view. The authors point out that correlation does not imply causality – it may be that slow growth causes high debt. They argue that policymakers should be wary – the case for cutting debt to boost growth still needs to be made. The rest is here

Wednesday, April 4, 2012

Is public debt bad for growth?

Not really.

This paper uses an instrumental variable approach to study whether public debt has a causal effect on economic growth in a sample of OECD countries. The results are consistent with the existing literature that has found a negative correlation between debt and growth. However, the link between debt and growth disappears once we instrument debt with a variable that captures valuation effects brought about by the interaction between foreign currency debt and exchange rate volatility. We conduct a battery of robustness tests and show that our results are not affected by weak instrument problems and are robust to relaxing our exclusion restriction.

The paper is here

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