Sunil Gavaskar, Michael Atherton, Ian Chappell and Clive Lloyd are among 14 former international captains that have written a letter to Pakistan's prime minister expressing concern for the health of Imran Khan
Full story: srkl.in/6016BAsM3n
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Renmin University's Jia Genliang is calling for a substantial expansion of China's fiscal deficit to fund direct increases in Chinese household income. "China is facing a lack of consumption demand," he argues, "which is fundamentally due...
bloomberg.com/news/articles/…
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Sovereign Debt Puzzles
with Patrick Bolton @imperialcollege @cepr_org and Mitu Gulati @UVALaw is now published in full open access in the Annual Review of Financial Economics
@AnnualReviews @GVAGrad @GVAGrad_CFD @GVAGrad_Library
link⬇️⬇️⬇️⬇️
annualreviews.org/eprint/AAX…
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While it is hard to think about anything except the tragedy in Gaza, here are my 8 takeaways from last week’s IMF/WB Meetings & what they might mean for Pak.
1️⃣ The mood in Marrakesh was somber, amid yet another reminder that the world is (literally & figuratively) on fire…
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African countries are getting closer to resolving debt crises, but the line is getting longer trib.al/NHKcfHy
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My two (or more) cents about Iran's involvement in recent developments in Southern Israel. In my opinion, two crucial distinctions are required. First, it is necessary to distinguish between Iranian support to Hamas, as well as the ongoing coordination between IRGC, Hezbollah, Hamas, and the Palestinian Islamic Jihad (the "Resistance Front") and between the initiative, organization, and execution of the Hamas operation. While there is no doubt about the military cooperation between Iran and Hamas and Iran's increasing involvement in the Palestinian arena, including the West Bank, in recent years, I highly doubt whether Iran was significantly involved in Hamas's latest action. This is a Palestinian story. Did Hamas use Iranian aid? Definitely yes. Did Iran have an interest in this action? Yes.
Does Hamas need Iranian permission to operate? No. Was there early coordination between Hamas, Iran, and Hezbollah? It's possible. But, in the end, it is an action by Hamas based on it own interests arising from the Palestinian reality. My assessment is also supported by the recent statement of the IDF spokesman who said, "Iran is a significant player, but we cannot say that it planned the operation or trained for it."
A second important distinction that is between the involvement of Iran (and Hezbollah) until the Hamas operation and what will happen from now on. In recent years, I shared the assessment that Iran has no interest in expanding the conflict between Israel and Hamas to other arenas through active participation (by itself and mainly through Hezbollah) during the occasional rounds of warfare between Israel and the Palestinians. I still believe that the concept according to which Iran has no interest in involving Hezbollah (which is considered by Tehran as a strategic tool to respond to a potential Israeli attack against Iran's nuclear facilities) is still relevant. However, we have recently witnessed at least three developments that may challenge the validity of this assessment:
A. The Hamas operation is a reality-changing event in the Middle East that may oblige Iran to move from the phase of ongoing support and coordination to a more direct involvement, especially if the Israeli response poses a significant challenge to Hamas.
B. In recent years, it has become increasingly clear to Iran that, with all due respect to the nuclear issue, a significant part of Israeli activity has been aimed at undermining the regional order and not only Iran's nuclear program. Therefore, Iran has been more committed to increase its involvement around Israeli borders (and even inside Israel) and perhaps is also prepared to pay a higher price for a possible confrontation with Israel, not only in the nuclear context.
C. Iran has practically positioned itself on the nuclear threshold and, at this stage, is not concerned with the possibility of Israeli military action except in the scenario (which does not seem likely at this stage) of a decision to break out to nuclear weapon. Therefore, Tehran may assess that using Hezbollah is no longer considered a "waste of capabilities" but a justified way to advance its strategic vision at the most convenient time. And so, in the bottom line, even assuming (as I do) that Iranian involvement in the implementation of the Hamas operation was not significant, I believe that the danger of escalating into an event involving Iran and Hezbollah has increased significantly.
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The most powerful new fact I learned from @WorldBankSAsia's new collection of notes on 🇵🇰 was this:
our taxation is the most regressive of 66 countries studied by @CEQinstitute 👇
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JPMorgan is adding India to its benchmark emerging-market index, a keenly awaited event that could drive billions of foreign inflows to the nation’s debt market trib.al/oVzfI44
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Fixing the housing crisis is not rocket science.
“Minneapolis has been building more housing than any other large city…and has abolished zones that limited construction to single-family housing…average rents are down more than 20% since 2017”
Cc:@Noahpinion @JohnHCochrane
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NEW: Erdogan opposes India-Middle East Corridor
• “We say that there is no corridor without Turkey,” he said
• Turkish president says Ankara is backing a rival scheme to connect the Gulf to Turkey through Iraq, called the Development Road Project
middleeasteye.net/news/turke…
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MASSIVE News: The World Bank is set to unveil a $35 Billion financing package for Turkey -- an unprecedented amount the Mideast's largest non-oil economy is getting from the DC-based lender. Here is the breakdown of what it is and means ⤵️
bloomberg.com/news/articles/… via @economics
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Almost all the inflation news has been good — except for the Fed's measure of "supercore," core services ex shelter. But can we now admit that this is a lousy indicator? As one source said, it's a "dog's breakfast" of strange items 1/
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Incredibly, the placebo effect is (mostly) not real.
It is a result of statistical confusion. Whenever you have a group with extreme values, they tend to exhibit regression to the mean. Eg. on average, sick people tend to become more healthy over time.
Thus if you give one group medicine, and one group placebo, the placebo group will also tend to get better over time, because of regression to the mean.
People have then misinterpreted this to think that it is the placebo pill that actively does this.
If you want to demonstrate a placebo effect, you have to construct a study where there are three groups:
• A. treatment
• B. placebo
• C. no treatment, no placebo
If B and C get different outcomes, that would demonstrate a placebo effect.
When this has been tried, mainly there has been no provable placebo effect. See the paper in the screenshot. (There is some evidence for an effect for pain, but this get's into a slightly different debate.)
The fact that the placebo effect is mainly not real, fortunately frees us from having to come up with convoluted explanations, as to why the placebo effect would work even when we tell the patient that it is a placebo, as in the quoted tweet.
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* Why raising interest rates lowers inflation, and usually (but may not) raises unemployment 🧵
When the CB raises nominal interest rates, agents want to save more in nominal vehicles as opposed to real ones. The relative value of nominal vs real must rise. Inflation must fall.
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In comments yesterday and tweets today, Iran’s CBI chief states:
—$6bn in won will be converted to euro in third country (Switzerland) then deposited in 2 Qatari banks
—6 Iranian banks can access this money via accounts in those Qatari banks
—Used for non-sanctioned trade
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Turkey’s Yeni Şafak interviews Mehmet Simsek this morning after attacking his orthodox policies in the last few weeks.
The newspaper, very close to the gov’t, also had to delete an article criticising Simsek’s interest rate policy last week.
Cordial interview
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The myth of autocratic competence takes another hit - Janan Ganesh on.ft.com/3pruGA8


























