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July 30, 2022

Analysis

Odious Debts

Iraq, Haiti, and the politics of illegitimate debt

In the aftermath of its 2003 invasion of Iraq, the United States was eager to restructure the ailing country’s sovereign debt. International sanctions since the Gulf War meant that Iraq was economically isolated, yet the country had a large stock…

April 27, 2022

Analysis

Regime Change?

The evolution and weaponization of the world dollar

The centerpiece of shock and awe of the West’s economic response to Russia’s invasion and bombardment of Ukraine was the freezing of Russia’s central bank assets. In the March 7 edition of his Global Money Dispatch newsletter, the Credit Suisse…

February 3, 2022

Analysis

Acute Dollar Dominance

The dollar system, original sin, and sovereign debt since the pandemic.

In early 2020, the “dash for cash” in the US Treasury market prompted the Fed to relaunch its dollar swap lines, which it eventually did in mid-March of that year. In the aftermath of the 2008 Global Financial Crisis (GFC),…

December 23, 2021

Analysis

Stop, wait, go

Is Germany's new coalition government a return to the status quo?

The new coalition government in Germany, led by Social Democrat Olaf Scholz, is the first time that the SDP, the Greens, and the Liberals have joined together in a single government. The cooperation agreement, published on November 24, was the…

December 18, 2021

Analysis

Homeownership & the Student Debt Crisis

Rising student debt burdens in the past decade have contributed to a decline in homeownership for young adults.

The benefits of owning a home in the United States cannot be overstated. The housing market in the United States both reflects and causes widening cleavages in American society; owning a home is a functional prerequisite for financial security. The…

December 11, 2021

Sources

In the 1970s, the study of Latin America was an intellectual crossroads for scholars of political economy, with discussion around theories of dependency, growth, and development being evaluated against the contemporaneous experience of Latin America states. But the lost decade…

November 12, 2021

Analysis

Growth Towns

The Evergrande crisis, “common prosperity,” and the transformation of the Chinese growth model

The ongoing crisis for Chinese property developer Evergrande has made the giant company the focal point of global concern. Creditors, investors, contractors, customers, and employees of Evergrande within and outside China have watched anxiously to see whether the Chinese government would…

September 4, 2021

Sources

Haiti won independence from France in 1804, but in return for recognizing its formerly enslaved colony, France later forced Haiti to pay an indemnity of 150 million francs and give preferential treatment to French exports. The debt was equivalent to…

September 1, 2021

Analysis

How Schools Lie

The deceptive financial aid system at America's colleges.

No matter how talented, hard working, and committed a student is, if financing falls through, the dream of obtaining higher education can be dashed. But much of the financial data that prospective students receive is misleading. In the cost information…

June 10, 2021

Analysis

Hysteresis & Student Debt

How the Great Recession fueled the student debt crisis.

The geographic character of the Great Recession of 2008–2009 is, by this point, well-known. While everywhere in the United States experienced a sharp increase in unemployment, some areas suffered disproportionate exposure to subprime mortgages and the consequent bursting of the…

June 8, 2021

Analysis

The Crisis Canal

Trade, bond markets, Suez, and the Ever Given.

Why did the Ever Given capture our collective imaginations? At the end of its week in the spotlight, the poet Kamran Javadizadeh wrote: “I too am ‘partially refloated,’ I too remain stuck in the Suez Canal.” Two fluorescent yellow-vested construction…

June 5, 2021

Sources

This week marked the 640th anniversary of the 1381 Great Rising, a rebellion which swept across medieval England demanding an end to serfdom and an overhaul of the legal system and the aristocracy.

May 6, 2021

Interviews

Restructuring Sovereign Debt

An interview with Ken Shadlen

Ken Shadlen's research examines how international institutions can create unique challenges for developing countries and, in doing so exacerbate core-periphery inequalities.

April 17, 2021

Sources

In January 2021, Crown Prince of Saudi Arabia Mohammed bin Salman unveiled plans to build ‘The Line’, a $/500bn futuristic 170km carbon-free city strip in Neom destined to be fully automated, fueled by clean energy, linked to neighboring Jordan and…

November 18, 2020

Analysis

The Student Debt Crisis is a Crisis of Non-Repayment

Borrowers are increasingly unable to pay down their student loans, leading to mounting balances and an intensifying debt crisis.

Think of the student debt crisis as an overflowing bathtub. On the one hand, too much water is pouring in: more borrowers are taking on more debt. That is thanks to increased demand for higher education in the face of…

September 17, 2020

Analysis

Unceasing Debt, Disparate Burdens: Student Debt and Young America

JFI’s interactive map presents the geography of student debt.

Since the Great Recession, outstanding student loan debt in the United States has increased by 122% in 2019 dollars, reaching the staggering sum of $1.66 trillion in June of this year. Student loan debt has grown faster than other debt…

August 15, 2020

Analysis

Another Lost Decade?

The systemic character of the global periphery debt crisis.

Contrary to common beliefs on fiscal fundamentals, the current debt crisis in the global periphery demonstrates that the solvency of sovereign states is determined by their monetary power. Crucially, liquidity has a cyclical character in the periphery of global capitalism…

June 25, 2020

Analysis

Mapping concentration and prices in the US higher education industry During and after the Great Recession, public funding for higher education was slashed as part of state budget austerity. Staff and programs were cut and tuition rose; in many states,…

May 22, 2020

Interviews

Municipal Bonds, Race, and the American City

An interview with Destin Jenkins

The rapid and expansive action taken by the Fed over the past two months in response to the coronavirus crisis has muddied the distinction between monetary and fiscal policy. In particular, its Municipal Liquidity Facility provides a path for financing…

January 21, 2020

Sources

Despite contributing towards a series of crises (from the third world debt crisis of the 80s to the Euro-crisis of 2010), sovereign debt is rising across low-, middle-, and high-income economies, leading to renewed discussions around the macroeconomic consequences of…

October 15, 2019

Sources

As student debt grows and the labor market stagnates, a growing body of research seeks to answer questions about the worthiness of college. What characterizes the schools and populations for whom college is worth it? What does worthiness mean—financial, intellectual,…

September 3, 2019

Sources

Last week, we considered how social and political standards can pressure climate scientists to under-report their findings, introducing an underestimation bias into published climate research. In a recent thread, Nicholas Loubere examines the development buzz around mobile money, showing how…

July 18, 2019

Analysis

Student Debt & Racial Wealth Inequality

How student debt cancellation affects the racial wealth gap

The effect of cancelling student debt on various measures of individual and group-level inequality has been a matter of controversy, especially given presidential candidates’ recent and high-profile proposals to eliminate outstanding student debt.

March 10, 2018

Sources

CRIMINALIZATION OF DEBT | INTERNET CENSORSHIP | EQUALITY BRUTAL ATTACHMENTS A new report on the criminalization of debt Last week, the ACLU published a report entitled "A Pound of Flesh: The Criminalization of Private Debt." It details the widespread use…

February 10, 2018

Sources

AUTOMATIC PRECISION Translating randomized controlled trials into policy action "A randomized experiment is performed,a statistically significant comparison is found, and then story time begins, and continues and continues—as if the rigor from the randomized experiment somehow suffuses through the entire…