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Full-Text Articles in Social and Behavioral Sciences
Low-Carbon Transition Risks For Finance, Gregor Semieniuk, Emanuele Campiglio, Jean-Francois Mercure, Ulrich Volz, Neil R. Edwards
Low-Carbon Transition Risks For Finance, Gregor Semieniuk, Emanuele Campiglio, Jean-Francois Mercure, Ulrich Volz, Neil R. Edwards
PERI Working Papers
The transition to a low-carbon economy will entail a large-scale structural change. Some industries will have to expand their relative economic weight, while other industries, especially those directly linked to fossil fuel production and consumption, will have to decline. Such a systemic shift may have major repercussions on the stability of financial systems, via abrupt asset revaluations, defaults on debt and the creation of bubbles. Studies on previous industrial transitions have shed light on the financial transition risks originating from rapidly rising ‘sunrise’ industries. In contrast, we argue here, based on a critical review of the literature, that a comprehensive …
Revisiting India’S Growth Transitions, Deepankar Basu
Revisiting India’S Growth Transitions, Deepankar Basu
Economics Department Working Paper Series
This paper reconsiders two questions relating to India’s economic growth: structural breaks in growth and the impact of equipment investment on aggregate economic growth. First, statistical tests of structural change show that economic growth in post-independence India has witnessed four structural breaks: in 1964-65, in 1978-79, in 1990-91, and in 2004-05. However, substantial growth accelerations, i.e. increase of more than 1.0% per annum in the growth rate of per capita real GDP, occurred only at two points: 1978-79 and 2004-05. Second, to analyze the impact of equipment investment on growth, I use an ARDL bounds testing methodology. I find a …
The Real Exchange Rate And Development. Theory, Evidence, Issues, And Challenges, Firat Demir, Arslan Razmi
The Real Exchange Rate And Development. Theory, Evidence, Issues, And Challenges, Firat Demir, Arslan Razmi
Economics Department Working Paper Series
This paper surveys the theoretical and empirical literature on the effects of the real exchange rate (RER) on international trade, economic development and growth. We summarize the main conceptual issues, discuss the relevance of the RER as an instrument of development policy, provide an overview of the macroeconomic and microeconomic mechanisms that link the RER to trade and long run growth and development, analyze the challenges – especially the disconnect between theory and data -- that often arise in empirical applications, and present new avenues for future research. In the process, we present some updated estimates and illustrative figures. The …
Weaknesses Of Mmt As A Guide To Development Policy, Adam Aboobaker, Esra Nur Ugurlu
Weaknesses Of Mmt As A Guide To Development Policy, Adam Aboobaker, Esra Nur Ugurlu
Economics Department Working Paper Series
This paper addresses the limitations of Modern Money Theory (MMT) as a guide to development policy. We explore two central questions on this topic: whether MMT policies 1) ought to be implemented in low- and middle-income economies and 2) can be implemented. In relation to the first question, we argue that the MMT literature mischaracterizes the essence of the development challenge for low- and middle-income economies. Our argument is that the chief long-run growth challenge faced by developing countries concerns structural transformation rather than general aggregate demand insufficiency. We use several formal representations of the consumption-investment trade-off in growth theory, …