Singapore at 50

BBC’s Sharanjit Leyl examines the rise of Singapore:

http://www.bbc.com/news/magazine-31626174

An Upside Down World

Negative yields in Europe -

http://www.nytimes.com/2015/02/28/business/dealbook/in-europe-bond-yields-and-interest-rates-go-through-the-looking-glass.html

“Bonds issued by Switzerland, Holland, France, Belgium, Finland, and even fiscally challenged Italy, also have negative yields. Right now, roughly $1.75 trillion in bonds issued by countries in the eurozone are trading with negative yields, which is equivalent to more than a quarter of the total government bonds, according to an analysis by ABN Amro.”

Update:

Nouriel Roubini on negative rates

http://www.project-syndicate.org/print/negative-nominal-interest-rates-by-nouriel-roubini-2015-02

Clever Robots and Jobs

An interesting front-page story in the WSJ - What Clever Robots Mean for Jobs (Feb 25, 2014):

http://www.wsj.com/articles/what-clever-robots-mean-for-jobs-1424835002

A highlight from the article:

“When I was in grad school, you knew if you worried about technology, you were viewed as a dummy—because it always helps people,” MIT economist David Autor said. But rather than killing jobs indiscriminately, Mr. Autor’s research found automation commandeering such middle-class work as clerk and bookkeeper, while creating jobs at the high- and low-end of the market.

This is one reason the labor market has polarized and wages have stagnated over the past 15 years, Mr. Autor said. The concern among economists shouldn’t be machines soon replacing humans, he said: “The real problem I see with automation is that it’s contributed to growing inequality.”

Cities, Economic Geography and Human Capital

Interesting new report on America Metro:
http://martinprosperity.org/media/Segregated%20City.pdf

The Miracle of Minneapolis [Valuable economic insights can be gleaned from this article]:

http://www.theatlantic.com/magazine/archive/2015/03/the-miracle-of-minneapolis/384975/

The article notes:

“The Twin Cities’ geographical blessings are subtle. Unlike America’s coastal megatropolises, Minneapolis doesn’t benefit from a proximity to other rich cities and their intermingling of commerce. Instead, it’s so far from other major metros that it’s a singular magnet for regional talent. “There’s basically nothing between us and Seattle, so we’ve historically had all these smaller cities in Iowa, Nebraska, the Dakotas, and Montana that are our satellites,” Orfield told me.”

Is Getting a Graduate Degree a Worthwhile Endeavor?

Is it Worth Getting a Graduate Degree?

It depends, according to a new report:

https://cew.georgetown.edu/wp-content/uploads/HardTimes2015-Report.pdf

A few highlights from the report –

Median earnings by detailed major, 2009-2012

Related,

Economics Grad School Information –

http://vivekjayakumar.blogspot.com/2012/11/economics-graduate-school-info.html

Labor in the Machine Age

An interesting new report from the Hamilton Project:
http://www.hamiltonproject.org/files/downloads_and_links/THP_MachineAgeFramingPaper_F.pdf

Nigeria - Africa's Troubled Giant

Against enormous odds, entrepreneurship thrives in Nigeria

http://www.bbc.com/news/business-31536706

Factors holding back Africa’s largest economy –

Nigeria Unraveled by Tom Burgis

http://www.ft.com/cms/s/2/b1d519c2-b240-11e4-b380-00144feab7de.html

Is There ‘Currency Manipulation’?

Harvard economist Jeffrey Frankel on the ‘currency manipulation’ debate:

“Even if one accepts that it is possible to identify currency manipulation, China no longer qualifies. Under recent conditions, if China allowed the renminbi to float freely, without intervention, it would be more likely to depreciate than rise against the dollar, making it harder for US producers to compete in international markets.

…

Those who charge Japan or the eurozone with pursuing currency wars have in mind the renewed monetary stimulus implied by their central banks' recent quantitative easing programs. But, as the US government knows well, countries with faltering economies cannot be asked to refrain from lowering interest rates just because the likely effects include currency depreciation.

Indeed, it was the US that had to explain to the world that monetary stimulus is not currency manipulation when it undertook quantitative easing in 2010. At the time, Brazilian Finance Minister Guido Mantega coined the phrase “currency wars" and accused the US of being the main aggressor.”

Der Spiegel on ‘Grexit’

What would happen if Greece left the Eurozone?

http://www.spiegel.de/international/europe/what-a-grexit-would-mean-for-greece-and-for-europe-a-1019542.html

Modern American History

The Italian Americans – a new PBS documentary – offers a fascinating perspective on early 20^th century America:

http://www.pbs.org/the-italian-americans/

Photocopiers – A Transformational Technological Innovation

An interesting piece in the Smithsonian highlights the impact of photocopiers on society and considers the potential impact of 3-D printers:

http://www.smithsonianmag.com/history/duplication-nation-3D-printing-rise-180954332/

Resurgent India

A cover story in The Economist

http://www.economist.com/news/asia/21644223-budget-next-week-must-be-bold-enough-turn-cyclical-recovery-sustained-boom-more

India’s economic rebound is underway

http://www.nytimes.com/2015/02/18/business/as-rivals-falter-indias-economy-is-surging-ahead.html

Related:

http://vivekjayakumar.blogspot.com/2015/02/the-fastest-growing-major-economy.html

Inaccurate Maps and Geography

Types of Capital and Economic Development

Development expert Jeffrey Sachs highlights the need for various types of capital to sustain economic development:

http://www.project-syndicate.org/print/promote-sustainable-development-economics-by-jeffrey-d-sachs-2014-11

Sachs notes:

“The key is to reflect on six kinds of capital goods: business capital, infrastructure, human capital, intellectual capital, natural capital, and social capital. All of these are productive, but each has a distinctive role. …

These six forms of capital work in a complementary way. Business investment without infrastructure and human capital cannot be profitable. Nor can financial markets work if social capital (trust) is depleted. Without natural capital (including a safe climate, productive soils, available water, and protection against flooding), the other kinds of capital are easily lost. And without universal access to public investments in human capital, societies will succumb to extreme inequalities of income and wealth.”

US Undergraduate Education System - A Critique

A thought provoking piece:

http://www.nytimes.com/2015/02/18/opinion/frank-bruni-college-poetry-and-purpose.html

I have previously highlighted similar perspectives:

http://vivekjayakumar.blogspot.com/2015/01/grade-inflation-and-americas-troubled.html

Cotton and the Industrial Revolution

A fascinating look at the rise of Europe (and the significance of Colonialism in driving European industrialization)

http://www.pbs.org/newshour/making-sense/west-got-rich-modern-capitalism-born/

US and the Empire of Cotton

http://www.pbs.org/newshour/making-sense/americas-first-big-business-railroads-slavery/

Comparing Technological Breakthroughs

Are modern day technologies as consequential as the breakthroughs of the past?
Short Answer: Probably not !!

http://www.washingtonpost.com/opinions/light-bulbs-vs-the-internet/2015/02/15/4d57fa36-b3a4-11e4-854b-a38d13486ba1_story.html