8 must-read economics 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. Economic growth before the Industrial Revolution in the 19^th century was negligible, correct? Think again. (Journal of Economic Perspectives)

2. The European Stability Mechanism (ESM) plays a major role in tackling the Euro crisis. How does it work and how have countries such as Ireland and Greece benefited? (Knowledge@Wharton)

3. On economics, happiness and the Dalai Lama – this piece profiles Richard Layard of LSE and his quest to understand and promote happiness. (Finance & Development, International Monetary Fund)

4. Is the U.S. economy ripe for a recession? No, say economists. (Institutional Investor)

5. Erdogan’s economic agenda for Turkey is misguided and a threat to the country’s prosperity, as is noted here. (BloombergView)

6. This week the investment bank Morgan Stanley published a report documenting inequality in the developed world. The bank’s research corroborates existing research on the topic, noting that inequality is rising within countries and that it stunts growth. (Morgan Stanley)

7. Jason Furman, chairman of the U.S. Council of Economic Advisers, has found that zoning regulation – the laws that determine the way land is used – exacerbates inequality by driving up property values and creating economic rents. Yet these rents also make such laws difficult to change. (The Atlantic)

8. Canada’s new government under Justin Trudeau is recognizing the need to embark on an inclusive growth agenda. The government’s International Trade Minister Chrystia Freeland explains why this is important and what it looks like in the case of Canada. (Los Angeles Times)

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

Image: The tower at 157 West 57th Street is seen in New York, September 20, 2012. REUTERS/Shannon Stapleton