10 must-read economic stories of the week

Welcome to your weekly update – a curated list of some of this week’s most interesting stories on economic growth and social inclusion.

1. Facts and figures. According to a report released by Credit Suisse this week, contrary to pre-crisis developments, middle-class wealth has grown at a slower pace than wealth at the top of the income distribution since 2008, and wealth inequality has widened in most countries since then. The infographic below displays the global wealth distribution. (Credit Suisse)

2. What does this year’s winner of the Nobel Memorial Prize in economics, Angus Deaton, stand for? Here is an overview by Justin Wolfers (The New York Times).

3. According to the IMF’s just published World Economic Outlook (WEO), advanced economies are expected to recover slightly relative to last year, while growth prospects for emerging and developing economies is projected to slow for the fifth consecutive year. (IMF)

4. Referring to the WEO, Martin Wolf outlines some risks for the global economy and some policy options to counter them in the short, medium and long term. (Financial Times)

5. For the first time in 27 years there will be a net outflow of capital from emerging markets this year, according to the Institute of International Finance. An important driver behind this is China. (Quartz)

6. Latin America has gone from a period of prosperity to a period of peril, as Moisés Naím argues. What could it mean for the region’s poor and middle class? (The Atlantic)

7. Global tax avoidance by companies undercuts economic growth and social inclusion. The Base Erosion and Profit Shifting Project (BEPS), a joint G20/OECD initiative, is one effort to address it. Joseph Stiglitz explains and suggests improvements. (CNN)

8. How’s life? This week the OECD published a report asking this question and measuring well-being across the OECD and its partner countries. (OECD)

9. A recent paper by two economists from the Federal Reserve documents wealth in the United States. (The Wall Street Journal)

10. In case you missed it. An interview with Angus Deaton, this year’s Nobel Laureate in economics.
    (The London School of Economics and Political Science)

Author: Jennifer Blanke is Chief Economist at the World Economic Forum

Image: A U.S. flag hangs above an entrance to the New York Stock Exchange REUTERS/Lucas Jackson