Raghuram Rajan: Populist Nationalism Is “the First Step Toward Crony Capitalism”

The former governor of the Reserve Bank of India discussed the “concentrated and devastating” impact that technology and trade had on blue-collar communities, the anger toward “totally discredited” elites following the 2008 financial crisis, and the subsequent rise of populist nationalism during a keynote address at the Stigler Center’s conference on the political economy of finance.   

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How Markets in Europe Opened Up as Guild Monopolies Declined in the Sixteenth Century

Markets don’t function well if they are ridden with frictions like lack of information or lack of trust. A new working paper finds that cities in the sixteenth century where monopolies of densely networked merchant guilds declined had significantly higher levels of printing, as they were early adopters of printing technology. Additionally, these cities were found on the Atlantic coast, where traders had the greatest incentives to form new connections with unfamiliar traders.  

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