BiblioVault - Books about Macroeconomics

Latin American Macroeconomic Reforms

The Second Stage

Edited by José Antonio González, Vittorio Corbo, Anne O. Krueger, and Aaron Tornell

University of Chicago Press, 2003

Hidden behind a number of economic crises in the mid- to late 1990s-including Argentina's headline-grabbing monetary and political upheaval-is that fact that Latin American economies have, generally speaking, improved dramatically in recent years. Their success has been due, in large part, to macroeconomic reforms, and this book brings together prominent economists and policymakers to assess a decade of such policy shifts, highlighting both the many success stories and the areas in which further work is needed. Contributors offer both case studies of individual countries and regional overviews, covering monetary, financial, and fiscal policy.

Contributors also work to identify future concerns and erect clear signposts for future reforms. For instance, now that inflation rates have been stabilized, one suggested "second stage" monetary reform would be to focus on reducing rates from high to low single digits. Financial sector reforms, it is suggested, should center on improving regulation and supervision. And, contributors argue, since fiscal stability has already been achieved in most countries, new fiscal reforms need to concentrate on institutionalizing fiscal discipline, improving the efficiency and equity of tax collection, and modifying institutional arrangements to deal with increasingly decentralized federal systems.

The analysis and commentary in this volume-authored not only by academic observers but by key Latin American policymakers with decades of firsthand experience-will prove important to anyone with an interest in the future of Latin American's continuing economic development and reform.

Contributors to this volume:

José Antonio González, Stanford University
Anne O. Krueger, International Monetary Fund
Vittorio Corbo, Pontifical Catholic University, Chile
Klaus Schmidt-Hebbel, Central Bank of Chile
Alejandro Werner, Bank of Mexico
Márcio G. P. Garcia, Pontifical Catholic University, Rio
Tatiana Didier, World Bank
Gustavo H. B. Franco, former president, Central Bank of Brazil
Francisco Gil Díaz, Minister of the Treasury, Mexico
Roberto Zahler, former governor, Central Bank of Chile
Ricardo J. Caballero, Massachusetts Institute of Technology
Philip L. Brock, University of Washington
Stephen Haber, Stanford University
Pablo E. Guidotti, Universidad Torcuato Di Tella, Buenos Aires
Vito Tanzi, International Monetary Fund
Enrique Dávila, Ministry of Finance, Mexico
Santiago Levy, Mexican Social Security Institute
Ricardo Fenochietto, private consultant, Buenos Aires
Rogério L. F. Werneck, Pontifical Catholic University, Rio
Carola Pessino, Universidad Torcuato di Tella, Buenos Aires
Michael Michaely, Hebrew University of Jerusalem

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Law and Macroeconomics

Legal Remedies to Recessions

Yair Listokin

Harvard University Press, 2019

A distinguished Yale economist and legal scholar’s argument that law, of all things, has the potential to rescue us from the next economic crisis.

After the economic crisis of 2008, private-sector spending took nearly a decade to recover. Yair Listokin thinks we can respond more quickly to the next meltdown by reviving and refashioning a policy approach whose proven success is too rarely acknowledged. Harking back to New Deal regulatory agencies, Listokin proposes that we take seriously law’s ability to function as a macroeconomic tool, capable of stimulating demand when needed and relieving demand when it threatens to overheat economies.

Listokin makes his case by looking at both positive and cautionary examples, going back to the New Deal and including the Keystone Pipeline, the constitutionally fraught bond-buying program unveiled by the European Central Bank at the nadir of the Eurozone crisis, the ongoing Greek crisis, and the experience of U.S. price controls in the 1970s. History has taught us that law is an unwieldy instrument of macroeconomic policy, but Listokin argues that under certain conditions it offers a vital alternative to the monetary and fiscal policy tools that stretch the legitimacy of technocratic central banks near their breaking point while leaving the rest of us waiting and wallowing.

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Leveraged

The New Economics of Debt and Financial Fragility

Edited by Moritz Schularick

University of Chicago Press, 2022

An authoritative guide to the new economics of our crisis-filled century. Published in collaboration with the Institute for New Economic Thinking.

The 2008 financial crisis was a seismic event that laid bare how financial institutions’ instabilities can have devastating effects on societies and economies. COVID-19 brought similar financial devastation at the beginning of 2020 and once more massive interventions by central banks were needed to heed off the collapse of the financial system. All of which begs the question: why is our financial system so fragile and vulnerable that it needs government support so often?

For a generation of economists who have risen to prominence since 2008, these events have defined not only how they view financial instability, but financial markets more broadly. Leveraged brings together these voices to take stock of what we have learned about the costs and causes of financial fragility and to offer a new canonical framework for understanding it. Their message: the origins of financial instability in modern economies run deeper than the technical debates around banking regulation, countercyclical capital buffers, or living wills for financial institutions. Leveraged offers a fundamentally new picture of how financial institutions and societies coexist, for better or worse.

The essays here mark a new starting point for research in financial economics. As we muddle through the effects of a second financial crisis in this young century, Leveraged provides a road map and a research agenda for the future.

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