EWIJ

[EWIJ @eshini_e]

"Neoliberalism, based on simplistic ideas about how markets should operate that fail to comprehend how they actually operate, didn’t work even in peacetime" https://t.co/Fs1vn2ciqS

[EWIJ @eshini_e]

@AstroPjs Congratulations!

[Richard V. Reeves @RichardvReeves]

1/9 My key takeaways from @OppInsights Raj Chetty’s new research on friendship and economic mobility https://t.co/6wfqpVCxhK via @BrookingsInst 🧵

[EWIJ @eshini_e]

@AstroPjs I had no idea your sister went to Methodist! She didn't come to Aunty Claire's right?

[Journal of International Economics @JIntlEcon]

New: "Sovereign Spreads and the Effects of Fiscal Austerity" by Diego Anzoategui. When are fiscal austerity policies likely to be self-defeating? This article introduces a small-open-economy GE model that incorporates the relevant trade-offs. https://t.co/ucjTlCEJOx 1/3

[EWIJ @eshini_e]

The global economy was also different when the Asian financial crisis struck. The US was in great moderation, globalization was peaking, and China was booming. Most of these trends which helped Asia grow out of these vulnerabilities no longer hold. 6/

[EWIJ @eshini_e]

There seems to be a lot of comparison of SL's current public debt crisis to the Asian financial crises in 1997/8 to assess lessons learned. But these crises were not driven by macro imbalances that originate from large fiscal deficits or reckless fiscal policy. 1/

[EWIJ @eshini_e]

Bottom line, the Asian financial crises were pure BoP crises and not driven by a public debt crisis like in SL. A public debt crisis is severe as the nexus between the govt and the rest of the economy (especially SL where the govt footprint on the economy is large) is strong.5/

[EWIJ @eshini_e]

@dinidu This explains why - https://t.co/kaiAb12u1W Also having such low unemployment and high vacancies doesn't really imply a recession does it?

[EWIJ @eshini_e]

@AstroPjs @MinFromTheNet I met her around 3 years ago I think, she was the same. Hope she's okay. Also, loving your SL updates. Keep it coming.

[EWIJ @eshini_e]

@AstroPjs @MinFromTheNet Oh no :( this must be recent then, the school was still there when I left.

[Ugo Gentilini @Ugentilini]

With 99% of #SriLanka’s population connected to the national grid and billing digitalized, a new paper proposes to provide #cashtransfers on the basis of electricity consumption (threshold = 60kwh/month).

Gunewardena and Siyambalapitiya
https://t.co/8DZeVIBTi3

[EWIJ @eshini_e]

Refreshing to read this on SL's inflation dynamics and monetary policy, which takes a balanced view, rather than the usual MMT nonsense that's been going around.

[IPS Sri Lanka @TalkEcon_IPS]

🆕TE blog!

Dr Dushni Weerakoon states that simulteanous action on all #macroeconomic policy fronts is essential to help stabilise prices and better anchor #inflation expectations amidst #EconomicCrisisLK.
#SriLanka

Full blog👉https://t.co/U5Tmf5zQpa

[EWIJ @eshini_e]

@rohenw123 @SWij93 Love it!

[EWIJ @eshini_e]

Since these items are not produced locally, an increase in prices will only result in a very marginal supply response. Until SL comes out of the BoP and public debt crises, the country will be forced to ration. 2/

[EWIJ @eshini_e]

I had highlighted this for SL as well - price required to clear markets for imported essential goods in the near term will result in large income distributional losses. This is because shortages are due to negative supply shocks (lack of FX) and not a demand surge. 1/

[Atif Mian @AtifRMian]

So the key issue will be "rationing", in the short run, no price can clear these markets, because Pakistan cannot produce these essentials, and who else will pay for it?

None of this is rocket science, and should have been patently evident to those in power -

[EWIJ @eshini_e]

@arvindsubraman @Noahpinion @paulkrugman So no SL's economic crisis is not due to high imports but mainly due to reckless fiscal policy that led to a public debt crisis and severe BoP crisis.

[EWIJ @eshini_e]

@arvindsubraman @Noahpinion @paulkrugman 7. Instead of restructuring debt and approaching the IMF the govt waited till there were no more reserves (largely used to payout FCY bonds) as they believed external financing needs could be met with foreign loans/swaps and by suppressing private demand through import controls.