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The Mundell difference | VOX, CEPR Policy Portal

Paul De Grauwe The opening sentence of Robert Mundell’s 1963 paper “Capital mobility and stabilization policy under fixed and flexible exchange rates” one of the two most influential in a series of pathbreaking papers he published in the late 1950s and early 1960s is curious: “The world is still a closed economy, but its regions and countries are becoming increasingly open.” “Still”? Was Mundell thinking of a future with interplanetary trade, so that eventually the world as a whole wouldn’t be a closed economy? OK, he probably wasn’t, but if he was, it would have been in character. Mundell, who passed away on 4 April, was an economist ahead of his time.

The suspensions of redemptions during the COVID 19 crisis – a case for pre-emptive liquidity measures?

The suspensions of redemptions during the COVID 19 crisis – a case for pre-emptive liquidity measures?
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The effects of health shocks on crime | VOX, CEPR Policy Portal

Fritz Foley While crime is traditionally considered a young man’s game, the number of crimes committed by older adults has climbed disproportionately in recent decades. 1 The main emphasis of the crime economics literature to date has been on factors with an early but long-lasting impact on criminal paths, such as education, family background, and opportunities upon entering the labour market (e.g. Cullen et al. 2006, Heckman et al. 2013). However, the rising share of crimes committed by older adults, often with a previously clean record, calls for a better understanding of late-in-life determinants. In Andersen et al. (2021), we document the effects of one of the most impactful and widespread adverse events over the life cycle – namely, cancer. To that end, we leverage rich administrative data from Denmark that allow us to link health and criminal records at the individual level and empirically explore whether (and why) affected individuals ‘break bad’.

The productivity consequences of pollution-induced migration in China

Matthew Kahn, Siqi Zheng The large productivity gaps across regions or sectors within developing countries create an enduring development puzzle: Why do workers remain in low productivity areas when they could experience wage gains elsewhere (Gollin et al. 2014)? It is important to understand the drivers of worker location choices, as migration has the potential to produce substantial economic gains. The literature proposes a few explanations for the low rates of within-country mobility observed across the world: migration costs may be high, migration may be risky, and potential migrants may lose something valuable that they possess at home, that they cannot easily take with them.

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