BRICS Bank Will Not Solve Members’ Energy Issues

By Chris Dalby: From changing the nature of global politics to being a force for human rights, the announcement of the new BRICS development bank has been met with feverish anticipation by the global economic community. Its supporters have written that it will free the world from the grip of the U.S. dollar as reserve currency, while […]

Is the BRICS Bank More ‘Democratic’ Than the World Bank?

The launch of the new BRICS development bank “reflects the disparity and democratic deficiency in the global governance and is trying to restart, to rethink that,” according to Nobel economist Joseph Stiglitz.  But is the BRICS bank really more “democratic” than the World Bank, whose governance legitimacy its founders are challenging? As the Geo-Graphic above shows, […]

Hurling BRICS at the World Bank and the $

Brazil, Russia, India, China, and South Africa (the “BRICS”) made a splash last week with the official launch of their new development bank.  The backers made no secret of their intention to challenge the way things are done in the established international financial and monetary architecture. The irony is that India and China are the […]

BRICS and Mortals

Leaders of the BRICS–Brazil, Russia, India, China, and South Africa–meet in Rio today to swap World Cup stories and launch a long-discussed “BRICS Bank.” The bank creates two funds–a development lending facility (New Development Bank or NDB) backed by $50 billion in capital ($10 billion from each of the BRICs), and a $100 billion rescue […]

Inflation Expectations in Brazil

In order to reanchor expectations, the elected president will have to prioritize inflation’s return to its target. In its latest poll among economic analysts, the Brazilian Central Bank (BCB) computed the median of inflation expectations for 2014 above 6.5%, the ceiling of the band around the inflation target (4.5%). This has heated the debate about […]

Brazil’s Gross Debt and the Fiscal Stance

The accounting tricks and the exaggerated expansion of government-owned banks have turned the gross debt into an indispensable indicator of fiscal stance. Recently, two international rating agencies, Moody’s and S&P, have signaled that their evaluation of the Brazilian economy has worsened. One of its main reasons is the public indebtedness’ evolution. There are two main […]

Revisiting My 2011 Predictions

Since the beginning of the global crisis in 2007-08 I have argued that the crisis was a consequence primarily of global trade imbalances generated by structural features that led to significant saving imbalances in China, the US, and within Europe. I describe this model in more detail in my recent book, The Great Rebalancing: Trade, Conflict, and […]

The Global Crisis, the Shaky Recovery and the Road Ahead: Interview With L. Randall Wray

I hope that all of you saw the very nice feature on Wynne Godley in the NYTimes. It’s about time he got the notice he deserved. I just came across a juicy quote from Wynne: Wynne Godley: “I want to say of neoclassical macroeconomics what I have sometimes said of certain kinds of fiction; I […]

Urbanization Cannot Explain China’s Imbalanced Growth Model

In the latest example of what we have dubbed “the most over-hyped theme in emerging markets,” the Carnegie Endowment’s Yukon Huang defends China’s imbalanced growth model as a natural consequence of rapid urbanization in an FT Alphavile guest post. He writes, “urbanization largely explains both the decline in labor’s share of income and the increase […]