Monthly Archives: February 2011

When the Queen asked asked an academic at the LSE why the economics profession had failed to predict the credit crunch, she raised a topic which continues to resonate. In fact, the IMF’s watchdog criticised the organisation on exactly those grounds yesterday. Although many answers have been given to Her Majesty’s question, I suspect that none of them has really settled the issue. Her question is disarmingly simple, but the answer is not. Read more

Macroeconomists have understood for a long time that inflation expectations are an important determinant of inflation. But those who argue that interest rates must be raised today in order to keep inflation expectations down have forgotten why these expectations matter in the first place. Read more

Shankar Acharya

Everyone knows about the ‘old’ threats to sustained rapid growth in India, including poor infrastructure, distorted labour markets, competitive populism, the weak record of human resource development, painfully slow reforms and the reduced dynamism of industrial countries, post-crisis.  Read more