Six puzzles of the Turkish economy

I have been burning a lot of brain cells of late on six puzzles of the Turkish economy. I have already made some way into solving some of them, while I am still baffled by others. I will simply state them today, with the hope of sharing my answers over the course of the next […]

What Drives Hiring Uncertainty?

Despite one of the longest recoveries in recent US history, hiring remains subdued and the unemployment rate decreases mainly as a result of falling labour force participation. Other advanced economies face similar difficulties, even though their recovery has been less dynamic. Currently more than 8.3% of workers are out of a job in advanced economies, […]

Wages, Productivity and Employment in Italy: Tales From a Distorted Labor Market

Italy’s labour market productivity has been stagnating in the past decade despite numerous reforms. This column gives an explanation why this is so. By focusing exclusively on flexibility, past labour market reforms have completely neglected incentives. There is severe allocative malfunctioning in the Italian labour market. Wages do not reflect sector productivity in the short […]

The Stubborn Slump in Advanced Economies: Fighting the Last War is Not a Path to Success

The following is a modified excerpt from my new book, “The Age of Oversupply: Overcoming the Greatest Challenge to the Global Economy,” which will be released for sale by the Penguin Portfolio division of Penguin Random House on September 26th. With the developed world economies still unable to escape from a condition of persistent economic […]