Centre for International Governance Innovation
57 Erb Street West
Waterloo, Ontario N2L 6C2
NBER Working Papers and Publications
|December 2011||Linking External Sector Imbalances and Changing Financial Instability before the 2008 Financial Crisis|
with John Whalley, Manmohan Agarwal, Jing Wang, Chen Yan: w17645
The G20 Framework for Strong, Sustainable and Balanced Growth builds on the claim that growing imbalances before the 2008 Financial Crisis were a major cause of the crisis, and the further claim that reducing imbalances post crisis must be a central part of any effort to prevent a further occurrence. Analytical literature in economics seemingly does not provide satisfactory measures of financial instability, either in individual national economies or in the combined global economy; nor ways of linking imbalance change to either worsening or improving financial (or real) instability and the onset of financial crises.
Here we focus on the external sector component of financial instability and link changes in country imbalances to individual economy growth rates in ways when summed across...
Published: “External Sector Rebalancing and Endogenous Trade Imbalance Models.” Contemporary Economics 6 (4), October 2012, pp. 20-26.
|October 2009||Unilateral Measures and Emissions Mitigation|
with Shurojit Chatterji, Sayantan Ghosal, John Whalley: w15441
We discuss global climate mitigation that builds on existing unilateral measures to cut emissions. We document and discuss the rationale for such unilateral measures argue that such measures have the potential to generate positive spillover effects both within and across countries. In a simple dynamic model of learning we show that while single countries on their own may never get to the point of switching completely to low emission activities, a learning process with positive spillovers across nations is more likely to deliver a global switch to low emissions. We discuss the key features of a new global Intellectual Property (IP) regime that builds on the positive spillovers inherent in unilateral initiatives and accelerates global convergence to low emissions.