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5 Puzzles in the International Economy
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5 Puzzles in the International Economy

Homi Kharas
Brookings Institution, 2019
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8

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Recommendation

Researcher Homi Kharas provides a thought-provoking look at five current and perplexing macroeconomic conditions: low net capital flows to developing economies, sluggish growth in global productivity, unresolvable externalities, elusive agreement about progress, and underinvestment in nutrition and education. In this brief but elucidating article, Kharas offers no new solutions, but he poses these conundrums in a way that will help readers better understand the challenges they present.

Take-Aways

  • In 2019, the complex world economy presents critical challenges in five areas.
  • First, not enough capital flows for investment are going to emerging markets. Second, global productivity growth is weak.
  • Third, countries are not resolving labor and environmental externalities.

About the Author

Homi Kharas is interim vice president and director of the Global Economy and Development Program at the Brookings Institution.

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