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India's coastal cities have been playing a pivotal role in international relations through culture, commerce, and connectivity since the hoary past. In modern times, coastal cities such as Mumbai (formerly Bombay) on the Arabian Coast and Kolkata (formerly Calcutta) on the Bay of Bengal have been active actors in international affairs. While Mumbai has been the hub of international trade and commerce, Kolkata has been the junction of cultural bonhomie with Bangladesh and Southeast Asian countries, which gained more traction due to cross-border movements of technology, information, education, trade and finance, and artistic tools bolstered by the New Economic Policy beginning in the early 1990s. Indian states and metropolitan cities are enhancing their positions in international affairs with tangible gains. Mumbai is referred to as India's financial capital and the home to the headquarters of great global business houses and financial organisations. Similarly, Kolkata is known as the cultural capital of India (Sri Aurobindo, Tagore, Shanti Niketan, Bengali folk art and culture etc.) and a destination for foreign tourists, artists and curious researchers. This paper examines the growth and impact of city diplomacy in India through the prism of federalism in advancing local interests in international politics. It attempts to assess the role of Indian cities from a comparative perspective in the conduct of city diplomacy from economic and cultural aspects. [ABSTRACT FROM AUTHOR]

In this paper, we develop the idea of the Sraffian Supermultiplier, presenting it as an alternative to traditional neoclassical thought about economic growth and economic policy. Thus, a brief introduction is made about the importance of economic growth for classical economists, followed by the development of Harrod's model and the different solutions that have raised for sorting the problem of instability. Finally, we present the supermultiplier model of Serrano together with international empirical evidence that supports it and some proposals of economic policy are made. [ABSTRACT FROM AUTHOR]

This paper criticizes the supply-side economic policy promoted by the UK government under Prime Minister Liz Truss. According to the conventional interpretation, the stagnation and productivity crisis in the UK economy is due to the excessive tax burden on large corporations and the tax burden on the richest 1%. If these tax liabilities were reduced, it would increase the profitability of investment, demand and the rate of growth. This would translate into better incomes and higher levels of employment. This story is based on the Laffer curve and associated with the "trickle down" hypothesis, falsified by empirical evidence. Tax reductions for the richest people worsen the distribution of income, and do not raise income or employment. The cause and effect is from profits to investment and growth; not from spending to profits and growth. [ABSTRACT FROM AUTHOR]

This paper explores the credibility of monetary policy in Colombia and its evolution after the adoption of the inflation targeting system. To do so, a non-linear Phillips curve is estimated based on unemployment for an open economy, which incorporates the direct effect of past inflation rate on price formation and a prospective component. It shows a deeper trade-off between inflation and unemployment and lower inflationary persistence. Consequently, the country could emphasize the greater responsibility of the central bank in economic growth and employment. [ABSTRACT FROM AUTHOR]

Economics is a policy discipline that deals with the problems of social organization and the general good. It co-evolves with circumstances, and it is historically contingent. The world to which economic policies are ultimately addressed is a complex system. Yet economists seeking to develop appropriate policies are necessarily guided by simplifications and heuristics. The question before the discipline is to decide what sort of simplification is best suited to the task. In the spirit of modern science, this paper argues that appropriate generalizations, simplifications, heuristics, and principles are to be derived from a study of the actual world. While these may deploy mathematical tools and draw on insights from the behavior of mathematical systems, the latter by themselves are inadequate, especially where they start from the dead dogmas of the neoclassical mainstream: ex nihilo nihil fit. [ABSTRACT FROM AUTHOR]

Macarena Suanes and Oriol Roca studied the main determinants of inequality and economic growth in Latin America between 1980 and 2009 and found that one of the main determinants was foreign direct investment. This paper extends that study to 2015 and shows that such investment is no longer significant. In contrast, increasing human capital significantly reduces inequality and improves economic growth. It is recommended, then, that economic policies are oriented towards raising educational attainment. [ABSTRACT FROM AUTHOR]

This paper introduces an unpublished 1970 work written by the distinguished development economist Lauchlin Currie (1902-93) on Paul Rosenstein Rodan's famous 1944 essay on the "Big Push" which led to the debate on balanced and unbalanced growth in which Albert Hirschman (1915-2012) was an important contributor. Both Currie and Hirschman had been key economic advisers to the Colombian government and here their respective views on development planning are contrasted. In particular, it is shown how Currie's 1970 paper clarifies the theory that serves as the basis for Colombia's 1971-74 National Plan, which he designed and helped execute, and whose institutional innovations have had a lasting impact on Colombia's recent economic history. [ABSTRACT FROM AUTHOR]

In this paper the bases of monetary metalism are confronted with the institutionalist monetary fundaments of chartalism. Initially, an attempt is made to unmask the erroneous conception of money that still permeates economic and political doctrines in contemporary societies, in order to propose instead a new conception of money. This would be more adjusted to reality and historical evidence where it acts as a driving force for the development of the real variables. In this context, the nature of modern credit money is highlighted as a unit of account whose transferability incorporates the State as debtor. In this sense, it is concluded that a modern conception of money gives the monetary authority useful and concrete economic policy tools to deal with the problems of full employment and price stability that shake societies of today. [ABSTRACT FROM AUTHOR]

This paper is a discussion of the creation of agent-based models from the exclusive perspective of monetary phenomena. These correspond to Schumpeter's monetary analysis in its ideal version. A set of general principles formalizes a population of agents interacting in a decentralized way on the sole basis of monetary phenomena. We make use of these principles, and the subsequent agent-based model is a dynamic, non-deterministic system, whose numerical simulations are able to mimic stylized facts in macroeconomics. Further extensions of the model make possible the expansion its descriptive power, and its use in economic research. [ABSTRACT FROM AUTHOR]

As the heir of political philosophy, the English post-commercialist economy and the French physiocracy, since its origin, political economy has integrated production, circulation and the theory of value into the theories of the modern state and capitalist society. In this paper it is argued that, in political economy, the conceptions of the State and of society are related to the theory of surplus. It criticizes the marginilist notion of society, emphasizes the centrality of the theory of surplus, explained in the conflict between State and society, and identifies the limits of the principle of effective demand of Keynes and Kalecki. The main conclusion is that economic policy recommendations based on inflation, wage deflation and containment of public spending goals seek to increase the surplus in the crisis and recession phases of the economic cycle. [ABSTRACT FROM AUTHOR]

This paper discusses the gap between the expected and real effects of Colombian trade liberalization policy. First, we stress the influence of international integration on Colombia's growth and development, and explains why moving toward more free trade has not contributed to the consolidation of high value-added industries in that country. Ultimately, we apply the theory of political cycles and suggest that political power in Colombia has contributed to get the country trapped into an international dependency on primary commodities. [ABSTRACT FROM AUTHOR]

The aim of this paper is to present a historical series of Colombian GDP from 1888 to 2013. For that purpose we have employed an expenditure approach to reconstruct the GDP for the period 1888-1929. We linked it to the official statistics data of the DANE. The result is expressed in 2011 purchasing parity dollars for international comparisons. [ABSTRACT FROM AUTHOR]

This paper analyzes the convergence hypothesis and the impact of social policy on the economic growth of the six largest countries in Latin America between 1980 and 2010. Results suggest that social public policies have positively influenced growth in these economies. Particularly, there are non-observed variables (fixed effects) that positively affect the economic growth in Venezuela and Chile; however, there are other non-observed variables that may be negatively affecting growth in Brazil and Mexico. Regarding the convergence hypothesis, results reveal that the speed of convergence diminishes as real income rises, implying that these countries might be converging to their stable states. [ABSTRACT FROM AUTHOR]

This paper reviews the discussion on the most appropriate method for measuring productivity. It takes into account the TFP, the productivity of capital, and labor productivity, as well as its interpretations, scope, and relations. Additionally, it analyzes the impacts of this discussion on the evolution of the Colombian minimum wage over the period 2001-2016. Finally, it discusses the relationship between the growth of productivity and the distribution of income between capital and labor, proposing a critique of the neoclassical perspective. [ABSTRACT FROM AUTHOR]

This paper analyzes the welfare effects of improvements in investment in education and infrastructure with public-private participation, in a fiscal framework of a small and open economy for the Colombian economy. A DSGE model is built where families make decisions on human capital and the government finances megaprojects by placing infrastructure bonds. The results suggest greater effects in the long-term adjustment and improvements in social welfare when public spending is focused on sectors with higher levels of employment and technological and innovation improvements are introduced. [ABSTRACT FROM AUTHOR]

Capital flows have increased significantly in recent years and are a key aspect of the global monetary system. They offer potential benefits to countries, but their size and volatility can also pose policy challenges. The Fund needs to be in a position to provide clear and consistent advice with respect to capital flow and policies related to them. In 2011, the International Monetary and Financial Committee called for “further work on a comprehensive, flexible, and balanced approach for the management of capital flows". This paper proposes an institutional view to underpin this approach, drawing on earlier Fund policy papers, analytical work, and Board discussions on capital flow. [ABSTRACT FROM AUTHOR]

This paper presents evidence that macroeconomic accounting models helped to anticipate the credit crisis and economic recession, whereas equilibrium models, ubiquitous in mainstream policy and research, did not. This study traces the intellectual pedigree of the accounting approach as an alternative to neo-classical economics, and the postwar rise and decline of flow-of-funds models in policy use. The paper includes contemporary case studies of both types of models, and considers why the accounting approach has remained outside mainstream economics. Finally, it provides constructive recommendations for revising financial stability evaluation methods, and advocates an 'accounting of economics'. [ABSTRACT FROM AUTHOR]

This paper suggests that the best way to evaluate and drive development policy is to understand the root causes that explain the political economy restrictions limiting the developmental effectiveness of multilateral and bilateral institutions. To mitigate the deleterious effects of collective action restrictions this paper recommends a twopronged interdependent strategy: an enhanced use of ex ante evaluation in all interventions and through a more intensive application of the paper trail approach; and changes of constitutional rules or macro-institutional conditions which determine the decisions made in all institutions. [ABSTRACT FROM AUTHOR]

Entrepreneurship has become a prominent and strategically important issue when talking about the driving forces of prosperity and job creation. However, entrepreneurship seems to be poorly defined. The paper studies central assumptions by questioning what many contemporaries take for granted. The paper shows that it is necessary to define the term "entrepreneurship". Recent arguments should distinguish the difference, sometimes contradictory, between the phenomenon of dynamic fast growing firms and that of the emergence of new microenterprises of the self-employed that have neither the intention nor the possibility of growing. Economic policy debate should specify more precisely what is really meant when talking about entrepreneurship. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to analyze, with a new institutional economics framework, regulatory activity and its motivations. Better regulatory frameworks contribute to create an environment of legitimacy for the actions of the State. Nevertheless, this legitimacy can only be achieved by ensuring the efficiency and effectiveness of such frameworks in relation to the aim pursued such as correct market failures, reduce inequity failures, or generation of more competitive environments. [ABSTRACT FROM AUTHOR]

Economic and demographic growth in Colombia has been dominated by the largest cities. This has resulted in the common belief that Colombia is mainly an urban country. The aim of this paper is to show how economic and demographic growth has evolved, especially in terms of population density, since the mid-eighties. Using Markov transition chains and their spatial counterpart, we show that since the mid-eighties, municipalities have experienced a highly persistent pattern in which the main cities have maintained their position as the most densely populated. In contrast, municipalities that exhibited low levels of population density have remained relatively stagnant. [ABSTRACT FROM AUTHOR]

This paper uses a new measure of financial development to show that many benefits in terms of growth and stability can still be reaped from further financial development in most emerging markets. First, it defines financial development as a combination of depth, access and efficiency. Second, it highlights that the economic growth weakens at higher levels of financial development. Third, it indicates that the pace of financial development matters. Forth, it provides a new angle related to the tradeoffs of financial regulation. Finally, it finds that there is no "one-size-fits-all" in the sequencing of developing financial institutions versus markets, though as economies evolve the relative benefits from institutions decline and those from markets increase. [ABSTRACT FROM AUTHOR]

The analysis of innovative processes such as securitization leads to asking if the behavior of economic agents is a response to the institutional changes with specific objectives, or if the changes in the regulatory regime are the result of market behaviour or needs of the economy. The objective of this paper is to apply the theory of institutional change of North (agent, source, process and way of change) to examine the Colombian market in the period 1993-2013 in order to explore the main events which had an influence on the performance of securitization in general, and mortgage securitization in particular. [ABSTRACT FROM AUTHOR]

The 1949 World Bank mission headed by Lauchlin Currie recommended an integral attack on the interlocking vicious circles of underdevelopment through a widening of domestic and international markets and a reform of macroeconomic policy formulation. In 1950 Currie was invited by the Colombian Government to return as adviser to a new national planning board. In 1952 Albert Hirschman was also hired as an adviser to this board. This paper discusses the heated disagreements between these two distinguished economists, their influence on the theory and practice of economic development in Colombia and of the World Bank, and in particular their focus on planning based on an integral program versus individual project approaches to planning. [ABSTRACT FROM AUTHOR]

This paper analyzes the political nature of taxation, which helps to explain why adoption from the model sponsored by the IMF in Latin America, especially after the debt crisis, has not been homogeneous. Colombia is taken as a case study to show how tax reforms depend on the political process in Congress, which opens a gap between the bills, inspired by IMF, and the final laws. Finally, it raises some arguments that suggest the special interests' role in the design and application of tax policy, which interact without being necessarily reconcilable and can also explain the divergence between bills and laws. [ABSTRACT FROM AUTHOR]

This paper examines the relationship between macroeconomic uncertainty, fiscal governance and economic growth in Venezuela from 1968 to 2010. There is feedback between fiscal volatility and uncertainty, but the latter may be the result of weak governance, particularly volatile fiscal policy. Fiscal volatility affects fiscal outcomes, especially when fiscal policy is discretionary. A VAR model is used to examine these results. [ABSTRACT FROM AUTHOR]

This paper shows the relationship between utilitarianism and measurements of poverty. Despite efforts to construct indexes that overcome utilitarianism's limitations, they are still profoundly influenced by the spirit of Bentham. It has not been possible to break the association between portions of wealth and happiness. Recent measurements of poverty --such as the multidimensional poverty index-- are complements rather than substitutes of income-based indexes, such as the poverty line. Since it has not been possible to break away from utilitarianism, the best option is to take up the pertinent contributions of this school of thought, while at the same time taking on the challenge of going beyond utilitarianism. Instead of celebrating victory and proclaiming the end of utilitarianism, it is preferable to retake its central messages and seek that public policy effectively pursue the greatest happiness for the greatest number. [ABSTRACT FROM AUTHOR]

The ideas of modern macroeconomics provided the intellectual justification of the economic policies of the last 10 to 15 years. It is these ideas which the financial crisis falsified. The dominant paradigm in macroeconomic theory over the past 30 years has been that of rational agents who form rational expectations about the future and make optimal decisions. The aim of the paper is to study how these agents deal with risk and uncertainty, the source of the problems of the discipline of economics, the economy and the financial crisis. Modern macroeconomics has responsibility for the financial crisis, because it imposes its intellectual foundation on a world that operates in situations involving risk that are systematically underestimated and leads to not recognized situations of genuine uncertainty. [ABSTRACT FROM AUTHOR]

The great moderation lulled macroeconomists and policymakers alike into the belief that we knew how to conduct macroeconomic policy. The crisis clearly forces us to question that assessment. This paper reviews the main elements of the pre-crisis consensus, identifies where we were wrong and what tenets of the pre-crisis framework still hold, and takes a tentative first pass at the contours of a new macroeconomic policy framework. [ABSTRACT FROM AUTHOR]

In Mexico, wages have stagnated and profits have increased since 1980. This paper analyzes the causes of this performance both at an aggregate and sectorial level. Although in theory trade liberalization should have led to increased wages and a reduction of profits, an unlimited supply of labor prevented wages from increasing and transformed productivity gains in higher returns on capital. Growth of qualified employment was not the result of generalized technological advances; it reflected changes in the composition of labor supply. Higher investment in human capital does not necessarily lead to higher productivity or income. If the improvement in education of the labor force is to generate higher productivity, a public policy of stimulus for economic growth is required. [ABSTRACT FROM AUTHOR]