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HKS in the News June 8, 2012

1. Larry Summers: Europe crisis hit by 'realism failure' (Summers)

2. The Minimum City (Glaeser) The Economist

3. G20 and the issue of fossil-fuel subsidies (Mawardi) Jakarta Post

Larry Summers: Europe crisis hit by 'realism failure'

June 7

Interview with: Lawrence Summers, Center for Business and Government

Topic: The European economy

A top US economic policy-maker has told the BBC of a "deep and profound and continuing failure of realism" by European leaders over the euro crisis.

Professor Larry Summers said politicians in the US and around the world were right to be frustrated at how Europe has dealt with the crisis....

Larry Summers says it is not just about concrete effects like a drop in exports.

"There are also very large psychological effects," he said, "and the sense that a large part of the world economy could encounter really grave financial problems is a source of uncertainty.

"When people are uncertain, they wait, and that means they don't spend, and in a demand-short economy, that can be a serious problem.

"Europe is a threat not only to itself but to the global economy."

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The Minimum City

The Economist

June 9

Quoted: Edward Glaeser

Topic: Growth in Mumbai

Glaeser is also quoted in an article in The Vancouver Sun.

Mumbai has perhaps the most extreme statistics of any metropolis. Its land mass is small, stuck like a crooked blade into the Arabian Sea. It has poor transport links, so people who work in the city live near it. That in turn means it has the highest population density of any big city. But it is also low-rise. Panama City has a taller skyline....

Three things explain Mumbai’s predicament: regulations, financing and graft. The city, reckons Edward Glaeser of Harvard University, has “some of the most extreme land-use restrictions in the developing world”, designed to deter new migrants but which have backfired.

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G20 and the issue of fossil-fuel subsidies

The Jakarta Post

June 7

Commentary by: Izhari Mawardi MPP 2012

Topic: Upcoming G20 meetings

The leaders of the 20 major economies (G20) will meet in a summit on June 18–19 at Los Cabos, Mexico. The summit will build on past commitments of the Cannes Declaration inked last year, when the leaders reaffirmed their commitment to rationalizing and phasing out over the medium term inefficient fossil-fuel subsidies that encourage wasteful consumption, while providing targeted support for the poorest people.

The International Monetary Fund (IMF) estimates that fossil-fuel subsidies result in US$500 billion worth of trade lost annually from global gross domestic product (GDP). Focusing on Indonesia as a model for subsidy reform is crucial, as it is one of the four G20 countries that posted positive economic growth beyond 5 percent (6.4 percent) during the financial crisis in 2011.

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Broadcast Notes

Lawrence Summers, Center for Business and Government

NPR's “Morning Edition,” 6/6
Topic: The prospects for job growth

Paul Peterson, Program on Education Policy and Governance, 6/6
Topic: Popularity of teachers' unions

This selection of media appearances is compiled by the Office of Communications and Public Affairs.

To submit an item please email Jane Finn-Foley


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