8 must-read economics stories of the week

Welcome to your weekly update on some the most interesting stories on economic growth and social inclusion.

1. Facts and figures. China is graduating from economic catch-up. To realize consensus forecasts of 5.5-6% GDP growth in the coming decade, it must generate up to three percentage points of annual GDP growth through innovation, a McKinsey study finds. Where could this innovation come from? (McKinsey & Company)

2. The slow-down of economic growth in China is bad news for oil producing countries. What does it mean for them? (Foreign Policy)

3. The IMF this week warned of lower growth prospects in the Middle East and Central Asia, as oil prices remain low and global financial markets volatile. (International Monetary Fund)

4. Will Angus Deaton’s Nobel help change our approach to poverty? (Knowledge@Wharton)

5. Giving cash to the poor appears to be a very effective development policy. I have referred to a case study on Nigeria in this context in a previous post, but more research supports this notion. (Financial Times)

6. Trickle-down economics won’t eliminate poverty, writes Badr Jafar. Which role can the private sector play? (World Economic Forum)

7. According to media reports, several high-ranking Fed officials have questioned whether the Philips curve – describing the inverse relationship between inflation and unemployment – is useful in understanding the current economic situation. To find out why this matters and read about the use and usefulness of curves in economics, take a look at this article. (Quartz)

8. In case you missed it. A special report issued in a Peruvian magazine in the context of the Annual Meetings of World Bank and IMF looks at the future of the multinational financial institutions and development, featuring contributions by academics, think tanks and practitioners (Caretas).

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

Image: Construction workers walk at the financial district of Shanghai during lunch break July 23, 2012. REUTERS/Carlos Barria