Abhijit Banerjee and Esther Duflo on how economies can rebound

  • 📰 TheEconomist
  • ⏱ Reading Time:
  • 51 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 92%

United States Headlines News

United States Latest News,United States Headlines

Countries with certain socio-political characteristics rebound more easily after crises, say economists Abhijit Banerjee and Esther Duflo

WITH MUCH of the world economy in an induced coma, it is easy to think that it will be permanently hobbled by the covid-19 crisis. Yet history suggests that if a vaccine or a treatment is found, there is a good chance that the world will bounce back to where it was—provided wise economic and public-health policies are in place.

For economists, this rapid regional convergence is the best example of the logic of capitalism. The fundamental qualities that made an area attractive in the first place are still there: a river, a central location, a long history, a good education system and the like. Businesses will want to invest, people will want to move back and the more a city is damaged, the faster its recovery will be.

Another feature is that these countries emerged from conflict with strong governments that enjoyed a fair amount of legitimacy . Finally—and relevantly—most of these countries had very little inequality, which surely contributed to the sense of a joint enterprise. This risk is probably highest where the social equilibrium is already fragile, for example in much of the developing world. However countries like Italy, France and America—where inequality has become corrosive and resentment drives a substantial part of politics—may not be too far from the precipice of social instability.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

EU & US will Not be able to provide a covid19 Marshallplan. It's Not only Not over - but Pandemic is still in early stage. covid19 tyranny just started. Historians will blame too slow adaption to airborne transmission & biosafety4 measures WhateverItTakes & no bailouts

Don't hold your breath

Global society requires to humanely HONEST while dealing with other co citizens & be helpful to them. Politics destroyers of every good action.

No, better to let them sort themselves out.

Nah they're missing the point - screw poor countries and poorer people. Pump money and buy more equities instead...

No the world needs something that gets rid of the problem with as little trouble as possible. These people are idiots

We kinda need to fix America first...we ain’t doing so good.

No... most of the money in Africa goes to corrupt structures or leadees... more Money = more Corruption = less developement. No money helps most...

Why? Perhaps the so called poor countries should stop spending so much on lavish palaces for leaders and fancy toys for their armies.

The Gates plan.

bollemdb

Any form of strategic international cooperation would be welcome.

Yeah that, or some looting like in the 1st world. We'll keep the virus tx.

But the is always a great shift in terms of the economy

What are they drinking or smoking? WW2 and COVID19? WW2 caused total destruction of physical and human capital in Europe and Japan. They are not even comparable.

A pretty misleading tweet. The timescale in Britain, Japan and Germany was a decade (rationing ended in Britain in 1954.)

Abhijeet is the wrong economist for Democracy! He can be good for Socialism!

Did people then have to worry about catching a Virus?

The entire world has a big problem, what types of labor to get large amounts of its population engaged in for them to have real economic freedom and possibilities? This is a massive issue, before COVID robotics was going to kill jobs. Now lowest end (e.g. waiters) will die also

二战时美国可没有受影响

Jobs are needed quickly to recover from Covid. Getting distracted by climate change will be walking right into the China’s trap, which continues to build coal burning power plants claiming “developing” country exemption, grabbing market share while tripling global CO2 emissions.

This is what Prime Minister Imran Khan (ImranKhanPTI ) said months before to manage and stabilize the economy of the world.

Great idea. This type of idea can come only in mind of such awardy. All other people in the world are Idiot. If I say same thing, A village man says same thing.Any big brain require to say this? Who gave this idiot Nobel?

but nobody will do anything

One of my village uneducated pradhan wrote same thing one month back.

For any country to rebound economically, the domestic economy needs to be jumpstart within 2 years. For the domestic economy to accelerate, their main consumer group must have indecent salary way above average.

Can the economist consider to remove the paywall for people from poor countries so they can actually read it and understand things better.

I wonder how a country like mine will ever move towards emergence after the pandemic its gonna take like a billion year

Article must be read

in france we pay a lot of money for social work and yet poverty and unemployment continue to climb. the state consumes too much and badly should we continue this bad way?

At first glance this approach might seem reasonable and even beguiling. But it tends to ignore the broader macroeconomic, political and institutional drivers of impoverishment and underdevelopment.

*Wealth

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 6. in US

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Factbox: EU recovery fund - the battle linesThe European Commission will issue on Wednesday a new proposal for a long-term European Union budget and a coronavirus recovery fund to help economies in the bloc rebound from recession.
Source: Reuters - 🏆 2. / 97 Read more »

20 Canned Cocktails For Summer Days When Beer Won’t Cut ItCanned cocktails for summer days when beer just won’t cut it.
Source: StyleCaster - 🏆 104. / 63 Read more »

South Africa and Covid-19: A transformative opportunityPresident Ramaphosa can rediscover the ANC's soul by shedding the delusion of neoliberalism Opinion | Abdi Ismail Samatar
Source: trtworld - 🏆 101. / 63 Read more »

German business morale rebounds; state spending key to recoveryThe German economy is starting to recover as curbs to slow the coronavirus are lifted, a business morale survey showed on Monday, and separate output data pointed to the importance of government spending to support the recovery. Wish I lived there....... Ironically German tourist spending in Greece is their key to recovery
Source: Reuters - 🏆 2. / 97 Read more »

World economic prospects darken, rebound delayed: Reuters pollEconomic prospects for the developed world this year have darkened again in the past month as the coronavirus pandemic has rolled from Asia to the Americas, with a V-shaped sharp recovery expected by less than one-fifth of economists polled by Reuters. Trump says the stock market is doing great. Locked down to save the hospitals, stayed home to flatten the curve. Money printer went brrrrrrrr, reserve req was dropped and taxpayers were bribed to crash the economy. Destruction of small businesses and transfer of wealth to multinational corporations. Trillions. translation: borrow money and invest in stocks. All time highs coming by summer.
Source: Reuters - 🏆 2. / 97 Read more »

Europe could target Silicon Valley with taxes to help it rebound from the coronavirus-fueled recessionAs different governments deal with the greatest economic crisis since the Great Depression, they will need fresh cash to support their economies. EAT THE RICH The Overdose situation is being happened for the Financials of USA and also for entire world. EMs are gonna feel worse these awful actions' results. We gonna see how GDPs decrease, profits fall and unemployment numbers bounce due to Covid-19 issue ProfitFall MainStreet Вы молодцы
Source: CNBC - 🏆 12. / 72 Read more »