Archive for April, 2018

The Massive Need for Infrastructure in the Emerging and Developed World

Felipe Rezende | April 26, 2018

This is the first in a series of blog posts on financing infrastructure assets

Insufficient or inadequate infrastructure in both developing and developed economies has sparked a debate about whether financing is sufficient to sustain infrastructure investment to at least keep pace with projected global GDP growth. The task of keeping the minimum investment required to maintain current levels and fostering incremental spending to close the infrastructure gap has revived the debate over the role played by each actor in closing the gap and how to finance this process (see for instance G-20 2013; OECD 2013; World Bank 2015).

One of the major post-crisis challenges is that in spite of an ultra-low interest rate environment or even negative nominal and real rates, investment has been anemic in developed and developing economies (IMF 2015). This is particularly important because, since the crisis, investment has collapsed across all sectors (public, business, and household sectors) in Europe (McKinsey 2016, 2). And in the United States, “the trajectory of net fixed capital formation, which decreased from 12 percent of GDP in 1950 to 8 percent in 2007, then fell to only 4 percent in 2014. Average depreciation rates accelerated by about 20 percent during the 1980s as companies invested in shorter-lived assets such as ICT equipment but did not compensate in terms of higher gross investment rates. This amplified the decline in net investment” (2). To make matters worse, most governments in developed and developing nations (with the exception of a few cases) are cutting back on infrastructure spending due to fiscal consolidation (Figure 1), generating a public-funding shortfall in infrastructure investment.

Figure 1

Source: Mckinsey 2016, p.11

Moreover, insufficient private investment and declining real public investment have contributed to reduce the stock of public capital as a share of output over the past three decades (Figure 2). continue reading…

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27th Annual Minsky Conference Presentations

Michael Stephens | April 19, 2018

The 27th Minsky Conference — “Financial Stability in a World of Rising Rates and the Repeal of Dodd-Frank” — just wrapped up yesterday. Anyone interested in the slide presentations can find them below:

Welcome and Introduction
Jan Kregel, Director of Research, Levy Institute
Remarks in PDF
Session 1. US AND GLOBAL ECONOMIC OUTLOOK
MODERATOR: L. Randall Wray, Senior Scholar, Levy Institute; Professor of Economics, Bard College
SPEAKERS: Lakshman AchuthanCofounder and Chief Operations Officer, Economic Cycle Research Institute
PowerPoint presentation in PDF
Philip SuttleFounder and Principal, Suttle Economics LLC
PowerPoint presentation in PDF
Michalis NikiforosResearch Scholar, Levy Institute
PowerPoint presentation in PDF
Session 2. EMPLOYER OF LAST RESORT STUDY
MODERATOR: Peter Coy, Economics Editor, Bloomberg Businessweek
SPEAKERS: Pavlina TchernevaResearch Associate, Levy Institute; Professor of Economics, Bard College
PowerPoint presentation in PDF
L. Randall Wray, Senior Scholar, Levy Institute; Professor of Economics, Bard College
PowerPoint presentation in PDF
John F. HenrySenior Scholar, Levy Institute; Professor Emeritus, California State University, Sacramento; Adjunct Professor, University of Missouri—Kansas City
Session 3. REFORM AND INNOVATION IN FINANCIAL REGULATION AND MONETARY POLICY
MODERATOR: Matt PhillipsMarkets Reporter, The New York Times
SPEAKERS: Thomas FergusonDirector of Research, Institute for New Economic Thinking; Professor Emeritus, University of Massachusetts, Boston; Senior Fellow, Better Markets
PowerPoint presentation in PDF
Thorvald Grung MoeResearch Associate, Levy Institute; Special Adviser, Norges Bank
PowerPoint presentation in PDF
Walker F. ToddTrustee, American Institute for Economic Research (AIER); Lecturer in Finance, Middle Tennessee State University
PowerPoint presentation in PDF

Session 4. GLOBAL FINANCIAL IMPACTS: EUROPE AND LATIN AMERICA
MODERATOR: Edward HarrisonFounder, Creditwritedowns.com; Global Macro Advisors
SPEAKERS: Emilios AvgouleasResearch Associate, Levy Institute; Professor, University of Edinburgh Law School
PowerPoint presentation in PDF
Joerg BibowProfessor of Economics, Skidmore College
PowerPoint presentation in PDF
Rogerio StudartProfessor of Economics, Federal University of Rio de Janeiro, Brazil
PowerPoint presentation in PDF
Session 5. AMERICA FIRST: TRADE AND GLOBALIZATION
MODERATOR: Sophia LinLegal and Policy Coordinator, International Corporate Accountability Roundtable
SPEAKERS: Robert A. BleckerProfessor of Economics, American University
PowerPoint presentation in PDF
William MilbergDean and Professor of Economics, The New School for Social Research
PowerPoint presentation in PDF
Todd N. Tucker, Fellow, Roosevelt Institute
Session 6. TRACKING FINANCIAL FRAGILITY
MODERATOR: Jan Kregel, Director of Research, Levy Institute
SPEAKERS: Robert N. McCauleySenior Advisor, Bank for International Settlements
PowerPoint presentation in PDF
Frank VenerosoPresident, Veneroso Associates, LLC
PowerPoint presentation in PDF

Video of all the sessions, speakers, and Q&A will eventually be posted on the Institute YouTube page.

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