Prospect Magazine - 23 Apr 2018
Today, global public and private debt exceeds that of 2007 by $50 trillion. We could take comfort in the fact that the biggest global debtors (the US, China and Japan) have been living with large debt for a long time without tipping the world into another systemic financial crisis. Magnus warns, however, that too high a debt could be a prelude to the next economic crisis. He enumerates four reasons why we should worry. The bottom line: when the next crisis comes, over-indebtedness will limit fiscal flexibility (reads in 6-8 min).
Published in Weekly selection 28 April 2018
Project Syndicate - 19 Mar 2018
The productivity paradox (despite all the hype about tech, productivity is flat or declining) is one of today’s big economic conundrums. Not only are new technologies doing less to boost productivity than past innovations; but - as counterintuitive as it may sound – they may even have negative side effects that undermine productivity growth, and that reduce our wellbeing in other ways as well. This article explains persuasively why (reads in 4-5 min).
Published in Weekly selection 23 March 2018
Project Syndicate - 25 Jan 2018
In the opinion of the economist/policy-maker, the hope that the current global economic recovery will entail a retreat of populism is misplaced. Even in the best-case scenario, with income distribution beginning to improve, change would be “glacially slow”. Other factors feeding populism – deindustrialization, loss of manufacturing jobs, stubborn pockets of unemployment in left-behind cities and regions – would change equally slowly. He also asserts that earlier periods show that populism thrives in environments where longstanding sources of identity – for example, class or nation – have weakened, which is the case today (reads in 6-8 min).
Published in Weekly selection 26 January 2018