Archive for November 15th, 2013

The real heroes of the global economy are those that run small external imbalances

November 15, 2013

An interesting column by Prof. Dani Rodrik.

He says countries that have done well in recent times are those that run small external imbalances:

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Latin America woes – (Sen vs. Bhagwati everywhere)

November 15, 2013

Apologies to turn this debate on again. But you see this debate not just in India but all across the world. More than anything else it tells you how difficult it is to develop in a sustained fashion.

Some econ will point to the surge in a particular economy/economies (much like Bhagwati camp) and the other one would point out the missing social  development (much like Sen camp). The latter would add that this growth will not last long and is usually And vice-versa too applies.. One econ showcases the social development model of a particular econ/region whose growth etc is questioned by the second group.

And when it comes to Latam one has to be really careful. You never know when the story taken an unexpected turn. As the crisis struck in 2008, people were suprised how nothing happened in Latam. Barring Argentina, one usually heard how the crisis escaped the Latam region.

Not anymore.   of Brookings writes on the latam exuberance (0fcourse irrational):

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