Archive for December 13th, 2011

Celebrating 10 years of China’s entry into WTO..

December 13, 2011

On 11 Dec 2011, China completed its 10 years of WTO entry. Pascal Lamy, chief of WTO was there to mark the moment.

His comments:

Director-General Pascal Lamy, in a speech at a forum in Beijing on 11 December 2011 commemorating the 10th anniversary of China’s accession to the WTO, said: “On this tenth anniversary, and as we look forward for the next decade, I have two wishes that I would like to express. The first is that China’s involvement in the WTO helps us all in keeping this organization on the move towards more open and fairer trade. The second is that the WTO’s relevance for China keeps growing and helps this country to address its reform challenges. China has been and should remain important for the WTO. The WTO has been and should remain important for China.” 

Amazing to note this change in perception. I recall reading research/articles that how WTO entry will actually harm China as its producers will have to follow the WTO rules etc. But actually China has taken this issue head on and had made inroads into so many economies. It actually gave China more markets. Moreover, growth in countries like Australia and many others depends on the health of China’s trade sector.

However, concerns have come mainly from China’s undervaluation strategy. Hence claims to bring exchange rates into WTO ambit..


Analysisng history of central banks – institutional approach vs functional approach

December 13, 2011

Stefano Ugolini of Norges Bank writes a superb paper on the topic. Voxeu as always has a summary from Ugolini.

His broad point is not to look at central bank history from an institutional perspective. In this way we look at certain central banks like Fed, BoE etc and look at how they have evolved over the years. This way we miss some other organisations which worked as central banks in the past but do not exist today. The research focus instead should be from a functional  perspective where we list the functions of central banks and see which entities did them in the past.

He begins saying we ask wrong qs from economic history:


Importance of rhetoric in economics – Herman Daly vs. Jagdish Bhagwati

December 13, 2011

Just came across this paper by Fernando Estrada of Universidad Externado de Colombia. Economists have debated on the use of rhetoric to explain an economic point earlier as well. This one is more updated and current and is a nice read.

Estrada points rhetoric helps understand an economic debate and its nuances in a much better way. He picks on this debate on free trade and looks at two leading protagonists in the debate. Jagdish Bhagwati who believes trade is all good and  Herman Daly who opposes it saying trade is no good and focus should be on domestic policies . He points how the two have used rhetoric to make their points.

I am not really discussing this and leaving it to the reader to see the rhetoric. But still would want to point to Daly’s super criticism – Economists have become dangerous to the earth and its inhabitants.. 🙂 I am going to read more on Daly’s views for sure..

Well, thanks to blogs and internet we are seeing a lot of debate and rhetoric.  But yes more is welcome given such diverse views on state of economics..





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