What We’re Reading
Robert Pollin and Michael Ash, Pollin/Ash Versus James Hamilton
Matthey Ynglesias, Reinhart and Rogoff Call Backsies
Megan Erickson, The Strike That Didn’t Change New York
Gavin Mueller, The Rise of the Machines
Asef Bayat, Revolution in Bad Times
What We’re Writing
C.P. Chandrasekhar and Jayati Ghosh, Private Banks Don’t Help Financial Inclusion
Matias Vernengo, Harry Dexter White on Austerity and Confidence Fairies
Sunita Narain, Training Engineers, not Ganga
Gerald Epstein, Big Commodity Traders Pocketed $250 Billion Profit
The International Monetary Fund issued new guidelines on the use of capital account regulations, and GDAE’s co-sponsored Task Force on Regulating Capital Flows has continued to track and engage with the process. In a widely syndicated piece for the Project Syndicate, Gallagher called the reforms an important “half step,” important for acknowledging the value of such tools for developing countries to prevent damaging swings in currency values and contagion from international financial markets. His Pardee Policy Brief, “The IMF’s New View on Financial Globalization: A Critical Assessment,” goes into more detail. His Financial Times piece circulated widely, as did a piece on the issue by The Globalist, which appeared in China Daily, Valor Econômico (Brazil), The Financial Express (India). Gallagher also authored a provocative article in Global Policy, “Social Costs of Self-Insurance” that shows that the another way to regulate capital flows—by accumulating foreign exchange reserves—can be quite costly for emerging market and developing countries.
GDAE released new analysis of the incompatibilities between the new recognition of the validity of capital regulations and most U.S. trade agreements, which prohibit them. Gallagher teamed with the co-chair of a Pardee Task Force Leonardo E. Stanley to publish a policy brief, “Global Financial Reform and Trade Rules: The Need for Reconciliation,” in advance of the full Task Force Report, slated for release in March. Gallagher reiterated the contradictions in meetings with congressional leaders, and published his perspective in Al Jazeera, “Trade rules should not constrain fixing global finance.” While GDAE continues its work on Capital Flows and Development, Gallagher has been awarded a grant from the Institute for New Economic Thinking (INET) to collect some of his analysis on capital flows into a book.
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