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1. Zombies at Large? Corporate Debt Overhang and the Macroeconomy

Author:
Òscar Jordà, Martin Kornejew, Moritz Schularick, and Alan M. Taylor
Publication Date:
10-2021
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
What are the macroeconomic consequences of business credit booms? Are they as dangerous as household credit booms? If not, why not? We answer these questions by collecting data on non-financial business liabilities (primarily bank loans and corporate bonds) for 17 advanced economies over the past 150 years. Unlike household credit, business credit booms are rarely followed by macroeconomic hangovers. Data on debt renegotiation costs—instrumented by a country’s legal tradition—show that frictions to debt resolution make recessions deeper and longer—an important factor in explaining the differences with household credit booms.
Topic:
Debt, Economics, International Political Economy, Global Recession, Macroeconomics, Credit, and Corporations
Political Geography:
Global Focus

2. Cultural Evolution: People’s Motivations are Changing, and Reshaping the World, Ronald F. Inglehart

Author:
George E. Marcus
Publication Date:
07-2019
Content Type:
Journal Article
Journal:
Political Science Quarterly
Institution:
Academy of Political Science
Abstract:
Consolidating more than four decades of research, Ronald F. Inglehart elaborates on the enlightenment story that reliance on science and technology enables nations to meet the material needs of their populations. To that story he adds that populations, finding their security needs being met, are increasingly abandoning materialist values for post-material values. The meaning of life satisfaction is changing. Inglehart advances this story by converting it into explicit hypotheses and subjecting them to extensive empirical testing. Inglehart marshals considerable evidence chiefly drawing on the World Values and European Values Surveys covering something on the order of 90 percent of the world’s population from 1981 to 2014. Along the way, Inglehart demonstrates the potent role of culture in advancing or retarding the overall trajectory of economic growth and life satisfaction. These shifts occur on a time scale marked in decades through intergenerational change.
Topic:
Culture, Book Review, Political Science, State, and Corporations
Political Geography:
Global Focus