The Dangers of (de)Globalization
Between 1870 and 1914 the world lived the high point of the first era of economic globalization. The globe was effectively connected through railways, steamships, and telegraph lines.
Author: Sergio M. Marxuach
The Rule of Law and the Enforcement of Contracts
The rule of law is one of the most important institutions for economic development. For Friedrich von Hayek, Nobel prize winner in economics, the rule of law meant that “government in all its actions is bound by rules fixed beforehand – rules which make it possible to foresee with fair certainty how the authority will use its coercive powers in given circumstances and to plan one’s individual affairs on the basis of this knowledge.”
Seeing Things in their Precise Shape and Color
The current economic situation, both locally and globally, is the most complicated the world has seen since the Great Depression. In the midst of all this complexity is it imperative that we see things as they really are in order to properly diagnose the situation and to prescribe the correct course of action.
The Importance of Bond Ratings
Puerto Rico’s credit rating has been in the news recently. When the government of Puerto Rico or one of its agencies issues bonds, credit rating agencies, such as Moody’s Investors Service and Standard & Poor’s Rating Services, analyze various quantitative and qualitative factors that may affect the borrower’s ability and willingness to repay, including, but not limited to, the financial condition of the borrower, the prevailing economic conditions in the island, and the political environment at the time of going to the market.
The Determinants of Economic Growth
Ever since the days of Adam Smith, economists have struggled to understand the process of economic growth. While this effort has produced a better understanding the determinants of growth, many puzzles remain unsolved.
PREPA: A Deadweight on Puerto Rico’s Economy
In August of 2005, the Center for the New Economy published a research paper entitled “Restructuring the Puerto Rico Electricity Sector”. In that report we noted that the Puerto Rico Electric Power Authority suffered from various financial and operating inefficiencies that should be corrected as soon as possible.
A New Look at Puerto Rico’s Electricity Sector
In August of 2005, the Center for the New Economy (CNE) published a research paper entitled “Restructuring the Puerto Rico Electricity Sector”. In that report we noted that the Puerto Rico Electric Power Authority (PREPA) suffered from various financial and operating inefficiencies that should be corrected as soon as possible. In this update we find, unfortunately, that most of those deficiencies are still present three years later.
Proposal for a Post-Partisan Fiscal Policy
There has been a heated public debate recently regarding the Commonwealth’s General Fund budget for fiscal year 2008. This debate has concentrated, specifically, on the financing mechanism that will be used to plug the $1 billion gap between exprected revenues of $8.488 billion and budgeted expenditures of $9.488 billion.