The severe financial crisis and resulting worldwide economic recession we have been forecasting for years are finally unleashing their fury. In fact, the reckless policy of artificial credit expansion that central banks (led by American Federal Reserve) permitted orchestrated over last fifteen could not ended in any other way.
 expansionary cycle has now come to a close was set motion when...

Banking regulation and supervision were designed to protect banks from failure, but this did not avoid the large number of banking crises recently experienced by OECD countries. Using binary response models for panel data and centering on OECD countries, this paper emphasizes the poor influence of regulation and supervision on banks’ soundness and presents the main determinants of banking crise...

We outline a vision for an ambitious program to understand the economy and financial markets as a complex evolving system of coupled networks of interacting agents. This is a completely different vision from that currently used in most economic models. This view implies new challenges and opportunities for policy and managing economic crises. The dynamics of such models inherently involve sudde...

In this paper I analyse the role of openness and globalisation in Latin America’s economic development. The paper is divided into two distinct parts: I first (Sections 2 to 4) provide an analysis of 60 years of the region’s economic history, that go from the launching of the Alliance for Progress by the Kennedy administration in 1961, to the formulation and implementation of the market oriented...

"If there are two or more ways to do something, and one of those ways can result in a catastrophe, then someone will do it." The economic history of the world is replete with recessions and depressions. From the bursting of the British South Sea Bubble and the French Mississippi Bubble in 1720 (which at least one economic historian claims delayed the industrial revolution by 50 years) to the in...

We examine the differential response of establishments to the recent global financial crisis with particular emphasis on the role of foreign ownership. Using a worldwide establishment panel dataset, we investigate how multinational subsidiaries around the world responded to the crisis relative to local establishments. We find that, first, multinational subsidiaries fared on average better than ...

In November 2010, European Central Bank (ECB) the then Governor, Jean-Claude Trichet, opened the ECBs flagship annual Central Banking Conference. He challenged the scientific community to develop radically new approaches to understanding the economy: ‘When the crisis came, the serious limitations of existing economic and financial models immediately became apparent. Macro models failed to predi...

Technical progress is at the heart of economic growth and development. New or improved technology can be achieved through own research and innovations or through the absorption and adaptation of foreign technologies. To facilitate such technical progress requires a complex system of supporting institutions and good economic policies. This paper analyzes technical progress and innovation policie...