“ECONOMIC ORIGINS OF DICTATORSHIP AND DEMOCRACY”: ACEMOGLU AND ROBINSON BOOK

November 20, 2008 at 8:44 pm | Posted in Economics, Financial, Globalization, History, Research | Leave a comment

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Economic Origins of Dictatorship and Democracy

Daron Acemoglu

Massachusetts Institute of Technology

James A. Robinson

Harvard University, Massachusetts

(ISBN-13: 9780521855266 | ISBN-10: 0521855268)

This book develops a framework for analyzing the creation and consolidation of democracy. Different social groups prefer different political institutions because of the way they allocate political power and resources. Thus democracy is preferred by the majority of citizens, but opposed by elites. Dictatorship nevertheless is not stable when citizens can threaten social disorder and revolution. In response, when the costs of repression are sufficiently high and promises of concessions are not credible, elites may be forced to create democracy. By democratizing, elites credibly transfer political power to the citizens, ensuring social stability. Democracy consolidates when elites do not have strong incentives to overthrow it. These processes depend on the strength of civil society, the structure of political institutions, the nature of political and economic crises, the level of economic inequality, the structure of the economy, and the form and extent of globalization.

Highly interdisciplinary study of government, integrating economics, political science, sociology, and history • Real world in orientation, making it not just for students but also policy makers • Authors are internationally known for their work on this subject

Contents

Part I. Questions and Answers; Section 1. Paths of Political Development; Part II. Modelling Politics; Section 4. Democratic Politics; Part III. The Creation and Consolidation of Democracy; Section 6. Democratization; Part IV. Putting the Models to Work; Section 8. The Role of the Middle Class; Part V. Conclusions and the Future of Democracy; Section 11. Conclusions and the Future of Democracy; Part VI. Appendix; Section 12. Appendix to Chapter 4.

Prize Winner

Association of American Publishers/Professional and Scholarly Publishing Division Award 2006 – WinnerWinner

Woodrow Wilson Foundation Award 2007 – Winner

Woodrow Wilson Prize, American Political Science Association 2007 – Joint winner

Reviews

‘… brilliant in its parsimony of means and power of explanation.’ Financial Times

‘…there is much to admire. True to their title, Messrs Acemoglu and Robinson offer a unified theory of both democracy and its opposite. … The authors are brutal wielders of Occam‘s razor, and the 27 factors have been chopped down to a coherent handful. … According to two scholars cited in this book, even to look for a general theory of democratic reform requires great temerity. Happily, Messrs Acemoglu and Robinson have temerity in spades.‘ The Economist

I expect Economic Origins of Dictatorship and Democracy to be highly influential … The thesis is compellingly inventive … Acemoglu and Robinson will deservedly win an audience. Students of economics will study this text as much for its methodical exposition and academic proofs as for its conclusions. They will find the effort well worthwhile.’ Financial Times, FT Magazine

This path-breaking book is among the most ambitious, innovative, sweeping, and rigorous scholarly efforts in comparative political economy and political development. It offers a broad, substantial new account of the creation and consolidation of democracy. Why is the franchise extended? How do elites make reform believable and avoid expropriation? Why do revolutions nevertheless occur? Why do new democracies sometimes collapse into coups and repression? When is repression abandoned? Backed by a unified analytic model, historical insight, and extensive statistical analysis, the authors’ case is compelling.‘ James Alt, Harvard University

This tour de force combines brilliant theoretical imagination and historical breadth to shine new light on issues that have long been central in social science. The book cannot be ignored by anybody wanting to link political and economic development. Its range is truly impressive. The same logical framework offers plausible predictions about revolution, repression, democratization, and coups. The book refreshingly includes as much Latin American experience as European experience, and as much Asian as North American. The authors offer new intellectual life to economics, political science, sociology, and history. Game theory gains a wider audience by being repeatedly applied to major historical issues for which commitment is indeed a key mechanism. Economists and political scientists gain more common ground on their political economy frontier. Sociologists are given a new template about class interactions in the political sphere, one that suggests both new tests and new ideas. And comparative historians, while fleeing from active involvement in game theory, have a new set of conjectures to support or be provoked by.‘ Peter Lindert, University of California, Davis

A vast body of research in social science on the development of democracy offers detailed accounts of specific country events but few general lessons. Acemoglu and Robinson breathe new life into this field. Relying on a sequence of formal – but parsimonious – game-theoretic models and on penetrating historical analysis, they provide a common understanding of the diverse country histories observed during the last two centuries.‘ Torsten Persson, Stockholm University

James A. Robinson

Harvard University, Massachusetts

Robison, James A., and Daron Acemoglu. 2005. Economic Origins of Dictatorship and Democracy. Cambridge University Press. (Introduction available here)

Robinson, James, and Miguel Urrutia, eds. Economía colombiana del siglo XX. Un análisis cuantitativo. Colombia: Fondo de Cultura Económica.

James Robinson is Professor of Government at Harvard University and a faculty associate at the Weatherhead Center for International Affairs.

Professor Robinson studied economics at the London School of Economics, the University of Warwick and Yale University. He previously taught in the Department of Economics at the University of Melbourne, the University of Southern California and before moving to Harvard was a Professor in the Departments of Economics and Political Science at the University of California at Berkeley. His main research interest is why countries are different: particularly why some are more prosperous than others and why some are more democratic than others.

Economic Origins of Dictatorship and Democracy

MONETARY POLICY UK NOVEMBER 2008

November 20, 2008 at 12:06 pm | Posted in Economics, Financial, History, Research, United Kingdom | Leave a comment

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MPC Minutes

Monetary Policy Committee (MPC) Bank of England

Bank of England Subscription – Publications

19 November 2008

November 2008

Please follow the link below to view the minutes of this month’s

Monetary Policy Commitee Meeting.

Minutes of the meeting held on 5 and 6 November 2008 (PDF file)

If you have any questions regarding this e-mail, please contact webmaster@bankofengland.co.uk

Bank of England Subscription – Publications

webmaster@bankofengland.co.uk

Bank of England Subscription – Publications

Wed, Nov 19, 2008

BASEL COMMITTEE ON BANKING SUPERVISION STRATEGY TO ADDRESS BANKING CRISIS LESSONS

November 20, 2008 at 11:35 am | Posted in Economics, Financial, Globalization, Research | Leave a comment

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Basel Committee announces comprehensive strategy to

address the lessons of the banking crisis

The Basel Committee on Banking Supervision today announced a comprehensive strategy to address the fundamental weaknesses revealed by the financial market crisis related to the regulation, supervision and risk management of internationally-active banks.

Nout Wellink, Chairman of the Basel Committee said that “the Basel Committee’s work programme is well advanced and provides practical responses to the financial stability concerns raised by policy makers related to the banking sector.”

Mr Wellink added that “the primary objective of the Committee’s strategy is to strengthen capital buffers and help contain leverage in the banking system arising from both on- and off-balance sheet activities.” It will also promote stronger risk management and governance practices to limit risk concentrations at banks. “Ultimately, our goal is to help ensure that the banking sector serves its traditional role as a shock absorber to the financial system, rather than an amplifier of risk between the financial sector and the real economy,” Mr Wellink said.

The key building blocks of the Committee’s strategy are the following:

  • strengthening the risk capture of the Basel II framework (in particular for trading book and off-balance sheet exposures);

  • enhancing the quality of Tier 1 capital;

  • building additional shock absorbers into the capital framework that can be drawn upon during periods of stress and dampen procyclicality;

  • evaluating the need to supplement risk-based measures with simple gross measures of exposure in both prudential and risk management frameworks to help contain leverage in the banking system;

  • strengthening supervisory frameworks to assess funding liquidity at cross-border banks;

  • leveraging Basel II to strengthen risk management and governance practices at banks;

  • strengthening counterparty credit risk capital, risk management and disclosure at banks; and

  • promoting globally coordinated supervisory follow-up exercises to ensure implementation of supervisory and industry sound principles.

Mr Wellink further noted that the Basel Committee expects to issue proposals on a number of these topics for public consultation in early 2009, focusing on the April 2008 recommendations of the Financial Stability Forum. The other topics will be addressed over the course of 2009.

Mr Wellink emphasised that the Committee’s efforts will be “carried out as part of a considered process that balances the objective of maintaining a vibrant, competitive banking sector in good times against the need to enhance the sector’s resilience in future periods of financial and economic stress”.

About the Basel Committee:

The Basel Committee on Banking Supervision provides a forum for regular cooperation on banking supervisory matters. It seeks to promote and strengthen supervisory and risk management practices globally. The Committee’s members come from Belgium, Canada, France, Germany, Italy, Japan, Luxembourg, the Netherlands, Spain, Sweden, Switzerland, United Kingdom and United States.

The Basel Committee on Banking Supervision today announced a comprehensive strategy to address the fundamental weaknesses revealed by the financial crisis related to the regulation, supervision and risk management of global banks.

For more information, please see the attached press release.

Press & Communications

Bank for International Settlements

Basel Committee announces comprehensive strategy to address lessons of

banking crisis‏

Press, Service (Press.Service@bis.org)

Publications, Service (Publications@bis.org)

Thu 11/20/08

Centralbahnplatz 2 · CH-4002 Basel · Switzerland · Tel: +41 61 280 8080 · Fax: +41 61 280 9100 · email@bis.org

Bank for International Settlements

Basel Committee

Thu 11/20/08

“THE GREAT CONTRACTION 1929-1933”: MILTON FRIEDMAN BOOK

November 20, 2008 at 5:45 am | Posted in Books, Economics, Financial, History, Research, USA | Leave a comment

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The Great Contraction, 1929-1933: (New Edition) (Paperback)

by Milton Friedman (Author)

Anna Jacobson Schwartz (Author, Preface)

Peter L. Bernstein (Introduction)

Product Description

Friedman and Schwartz’s A Monetary History of the United States, 1867-1960, published in 1963, stands as one of the most influential economics books of the twentieth century. A landmark achievement, the book marshaled massive historical data and sharp analytics to support the claim that monetary policy–steady control of the money supply–matters profoundly in the management of the nation’s economy, especially in navigating serious economic fluctuations. The chapter entitled “The Great Contraction, 1929-33” addressed the central economic event of the century, the Great Depression. Published as a stand-alone paperback in 1965, The Great Contraction, 1929-1933 argued that the Federal Reserve could have stemmed the severity of the Depression, but failed to exercise its role of managing the monetary system and ameliorating banking panics.

The book served as a clarion call to the monetarist school of thought by emphasizing the importance of the money supply in the functioning of the economy–a concept that has come to inform the actions of central banks worldwide.

This edition of the original text includes a new preface by Anna Jacobson Schwartz, as well as a new introduction by the economist Peter Bernstein. It also reprints comments from the current Federal Reserve chairman, Ben Bernanke, originally made on the occasion of Milton Friedman’s 90th birthday, on the enduring influence of Friedman and Schwartz’s work and vision.

About the Author

Milton Friedman (1912-2006) was awarded the Nobel Prize in Economics in 1976. He was a Senior Research Fellow at the Hoover Institution and had previously taught at the University of Chicago from 1946 to 1976. He was also a member of the research staff of the National Bureau of Economic Research from 1937 to 1981. Anna Jacobson Schwartz is a research associate at the National Bureau of Economic Research, which she joined in 1941. She is a Distinguished Fellow of the American Economic Association and a Fellow of the American Academy of Arts and Sciences. During her distinguished career, she has made major contributions to the economics of business cycles, banking, monetary policy, and financial regulation.

Product Details:

  • Paperback: 320 pages

  • Publisher: Princeton University Press (Aug 31 2008)

  • Language: English

  • ISBN-10: 0691137943

  • ISBN-13: 978-0691137940

The Great Contraction, 1929-1933: (New Edition) (Paperback)

by Milton Friedman (Author)

Anna Jacobson Schwartz (Author, Preface)

Peter L. Bernstein (Introduction)


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