Accountability and Inequality in Single-Party Regimes: A Comparative Analysis of Vietnam and China

James Wong has sent you an article

Interesting article on comparison between China and Vietnam

Accountability and Inequality in Single-Party Regimes: A Comparative Analysis of Vietnam and China

http://hbswk.hbs.edu/item/5948.html

While both China and Vietnam have experienced rapid annual growth over the past two decades, income inequality has risen more rapidly in China than in Vietnam during the same period. Structural and socio-cultural determinants fail to account for these divergent paths, as nearly every variable predicts higher inequality in Vietnam. This paper by Regina Abrami and colleagues focuses on differences in political institutions to explain these divergent paths. In so doing, it contributes to a growing body of literature describing variation in authoritarian regimes, but focuses on variation within one authoritarian regime type.

Not an HBS Working Knowledge subscriber?

Sign up for our weekly free e-mail.

Paul Krugman's praises for Ben Bernancke's effort

 

 

Sent to you by Daaboom via Google Reader:

 

 

http://www.nytimes.com/2008/06/02/opinion/02krugman.html?hp

by Daaboom on 6/2/08

http://www.nytimes.com/2008/06/02/opinion/02krugman.html?hp

Paul Krugman's is praising Ben Bernanke efforts to save the market from a financial crisis.

He also attacked the conventional wisdom that the FED is not doing enough to calm inflation. I cannot agree with Dr. Krugman enough. Recent inflations are all felt in (and limited to) the energy and food sector. That is a classic signal that the economy should substitute away from a specific sector.

What makes this different from normal price adjustment is the fact that it is difficult to substitute away from oil. Nobody wants to give up their cars, or plan their travel on public transits. But, there's no better way for the market to yell "There's no more oil" than high prices.

So, the alternatives are

(1) You bit the bitter pill now, and change your lifestyle, find substitute (probably expensive substitute) to oil. The economy keeps on chugging along.
(2) The FED slow the economy down with higher interest rate, so less oil are consumed. No investment is substitute is made. All these just delay the end of the oil era.

 

 

Things you can do from here:

• Subscribe to Daaboom using Google Reader
• Get started using Google Reader to easily keep up with all your favorite sites

 

 

Support for strong dollar?

http://federalreserve.gov/newsevents/speech/bernanke20080603a.htm

At finance yahoo today, the two analyst are making waves about the Fed's speech yesterday. How, Ben Bernacke will support the dollar and what not. So, I actually went in and see what Ben spoke.

Over time, the Federal Reserve's commitment to both price stability and maximum sustainable employment and the underlying strengths of the U.S. economy--including flexible markets and robust innovation and productivity--will be key factors ensuring that the dollar remains a strong and stable currency.

I think the key word here is Over Time. Ben is not going to do anything now, so expect him to hold interest rate level for the next few meetings.