There are two critical factors to the contemporary phase of global labor migration: diaspora and remittances (small foreign currency transfers from host to home economies). Both can be the forces contributing to and fostering macroeconomic development in (usually) structurally weaker home (sender) economies.The way to do it?
In a recent paper, in the International Business Review, entitled “The Legends of the Caucasus: Economic Transformation of Armenia and Georgia” I attempt to evaluate the past two decades of macroeconomic, business, and institutional transformation in the two small open economies.
All standard clarifications on the imperfections of the post-socialist transition aside, I argue, that the two are open to international business that follows the local context.
Wrapping up this year’s Eastern Economic Association Conference, where I organized and chaired a session entitled ‘The perils of financial deepening and post-crisis development in emerging markets‘.
The panel addressed current opportunities and risks to [what we’ve become accustomed to refer to as] emerging economies given their increased involvement in the international capital markets & commodity trade, sovereign borrowing, and exchange rate stabilization strategies in the light of economic uncertainty exacerbated by sporadic capital flows, migration, trade imbalance, and a host of other factors, climate change included. Continue reading
I followed up with a question on South Korea’s experience and transformation in Eastern Europe. Why such a question? The theme comes up routinely in almost any informed discussion centered around economic development. Check it here.
Overall, there were some really interesting points in the keynote presentation and in the Q&A and during the entire conference.
Routledge has just published my Innovative fiscal policy and economic development in transition economies in a paperback and (significantly more) affordable edition!
Good news, in its Nov-Dec 2012 issue Challenge publishes my analysis on Russia’s economic diversification potential.
In the paper entitled “Is Russia Still a BRIC? Some Observations on the Economy and Its Potential for Diversification” I try to raise a balanced optimism commenting on growth in new local sectors/firms, the so-called “gazelles” as referred to in the Russian media, that specifically focus on domestic demand. Certainly macroeconomic challenges persist, but Continue reading
FRBNY has just released its Quarterly Report on Household Debt and Credit for Q2 2012 with a follow up update from FRBNY Liberty Street Economics.
In the update to their earlier report, FRBNY economists confirm continued overall deleveraging trend of the US households.
While on relative scale trends appear in somewhat opposite directions (e.g. credit cards vs. student loans chart vs. mortgage debt), on aggregate households are reducing their debt positions, primarily by a) reducing the volumes of new mortgage liabilities; b) paying out existing mortgage; and c) due to foreclosures/default. Continue reading