The Unassuming Economist

My work with Davide Furceri, and Jonathan D. Ostry on The aggregate and disttributional effects of financial globalization: evidence from macro and sectoral data makes into the list of the research that shaped our world in 2017–put together by Dan Kopf of Quartz.

The aggregate and disttributional effects of financial globalization: evidence from macro and sectoral data (pdf) by Davide Furceri, Prakash Loungani and Jonathan D. Ostry

Main finding: Foreign finance has led to more inequality.

Nominating economist: Dani Rodrik, Harvard University

Specialization: Globalization and economic development

Why? “In brief, opening up to foreign finance (“financial globalization”) produces limited gains to aggregate output while generating significant increases in income inequality (a higher share of top incomes, a lower labor share, etc.). This paper’s conclusions are significant as the authors are researchers at the International Monetary Fund, which aggressively pushed for financial globalization until recently.”