Monthly Archives: December 2010

Economic Stimulus (IMF Insights)

Blinder and Zandi via F&D just published some insights on the effects of the fiscal stimulus provided by the Obama administration as a response to the crisis. They underline the relative success of the stimulus by showing that things would be a lot worse without the intervention.

Unemployment and stimuli

Nevertheless, the Obama administration gets a midterm election fiasco, because the people are, understandably, not pleased by the economic stituation yet.

That sounds quite unfair to me, because now people vote for the other guys, who would have preferred to take the dark red line which you see on the chart.

But at least we can take comfort from two thing:

1) At least there‚Äôs an explanation for the mess we’re in (provided by a hobby political scientist).

2) It looks like, an important supranational institution is recently ruled by ‘demand guys’.
That does not mean that IMF’s “intellectual godfather” can stop turning over in his grave. But he can, at least, slow down the rotation speed a bit.

Colonial rule in fashion

Within one week, All About Finance and Aid watch both write about two different new papers having the same theme: the colonial roots of differences in current economic development.

Is there more to come?

Of course, this is not a new topic.

For a good overview see Acemoglu’s presentation at an IMF seminar in 2007. (The slides are more about the role of institutions for economic development, but the slides 12 to 16 deal with his settler mortality hypothesis).

QE2: Comment on Shanta's blog

I put a comment on the blog of World Bank Chief economist for Africa, Shanta Devarajan (it’s here).

It’s about Quantitative Easing.
A topic which is quite interesting in a development context.