- Can the Covid Bailouts Save the Economy? - Elenev, Landvoigt and van Nieuwerburgh (CEPR DP)
- Consumption in the time of Covid-19: Evidence from UK transaction data - Hacioglu, Känzig and Surico (CEPR DP)
- Supply and Demand in Disaggregated Keynesian Economies with an Application to the Covid-19 Crisis - Baqaee and Farhi (CEPR DP)
- Navigating Deglobalization - Mohamed A. El-Erian (PS)
- Long haul lockdown: Three scenarios for the impact of coronavirus on the UK economy - Leslie, Hughes, McCurdy, Pacitti, Smith and Tomlinson (VoxEU)
- The economic impact of Covid-19 in Europe and the US - Sophia Chen, Deniz Igan, Nicola Pierri, Andrea Presbitero (VoxEU)
- Working from home: Estimating the worldwide potential - Berg, Bonnet and Soares (VoxEU)
- Political beliefs affect compliance with COVID-19 social distancing orders - Painter and Qiu (VoxEU)
- Seize the opportunity of Covid-19 to restructure taxes - Martin Sandbu (FT)
- Growth in the shadow of COVID-19 debt - Jamus Lim (VoxEU)
- The European Central Bank is deluding itself over German court ruling - Wolfgang Munchau (FT)
- China car sales notch first rise in almost 2 years - FT
- The Emerging-Market Debt Trap - WSJ
- India must now help its people back to work - FT
I have written before about the investment dearth that took place in advanced economies at the same time that we witnessed a global saving glut as illustrated in the chart below. In particular, the 2002-2007 expansion saw lower investment rates than any of the previous two expansions. If one thinks about a simple demand/supply framework using the saving (supply) and investment (demand) curves, this means that the investment curve for these countries must have shifted inwards at the same time that world interest rates were coming down. But what about emerging markets? Emerging markets' investment did not fall during the last 10 years, to the contrary it accelerated very fast after 2000. This is more what one would expect as a reaction to the global saving glut. The additional saving must be going somewhere (saving must equal investment in the world). As interest rates are coming down, emerging markets engage in more investment (whether this is simply a move along a downward-sloppin...
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