Search the site
This column finds Stephen Miran's idea that there could be lasting reversal of exchange rates following an international currency agreement highly speculative, and argues that a multipolar system would attenuate the Triffin dilemma and provide the US with a deficit-adjustment tool.
Looking for a “fair” international monetary system
Economists have long struggled to measure the informal economy, despite its significant role in global economic activity. Previous methods have relied on indirect proxies such as cash circulation or electricity usage, or on inferences based on highly structured macroeconomic models. This column by Francesco Pappadà and Kenneth Rogoff introduces a new, algorithmic and easily updateable approach to estimating informal activity in Europe, utilising VAT data and consumption surveys. While the approach works particularly well for Europe, it can in principle can be extended to other countries where value added taxes are a major source of revenue.
