- BT-13A-9 Saujana Residency, SS16/1, 47500, Subang Jaya, Selangor, Malaysia.
Carmelo Ferlito
Institute for Democracy and Economic Affairs (IDEAS), Research, Department Member
- Taylor's University, School of Liberal Arts and Science, Department Memberadd
- Austrian Economics, Business Cycle Analysis, Joseph Schumpeter, Political Economy, Hayek, Economics, and 58 moreEducation, Social Sciences, Ludwig von Mises, History of Economic Thought, History of Economics, Economic History, Austrian School of Economics, Bruno Leoni, Catholic Social Teaching, Catholic Social Thought, Philipp Bagus, German Historical School of Economics, Hans-Hermann Hoppe, Ludwig Lachmann, Aurthur Spiethoff, Expectations, Spontaneous Orders, Business Cycles, Modern History, Malaysia, Friedrich Hayek, Financial Crisis of 2008/2009, Southeast Asia, Capitalism, Monetary Policy, Schumpeter, Keynes, Entrepreneurship - Robert Sirico - Liberalism - Free Markets - Emprendedor - Llamado del emprendedor, Malaysia education system, Global Financial Crisis, Early Modern economic and social history, Globalization, Free Market, Economic Crisis, Republic of Venice, Philosophy Of Economics, Public Debt, Neoliberalism, Sacri monti, Malaysian Politics, Fascism, Economic Sociology, Corporatism, European Central Bank, Social History, History of Capitalism, Socialism, Interest Rates, Developing Countries, Southeast Asian history, Financial Crisis, Early Middle Ages (History), Keynesian Economics, Capital theory, Property Market Analysis, Affordable Housing, Costs of Living, and Malaysian Studiesedit
- Dr Carmelo Ferlito (Verona, Italy, 1978) is the CEO of the Center for Market Education (www.marketedu.me) and a Senio... moreDr Carmelo Ferlito (Verona, Italy, 1978) is the CEO of the Center for Market Education (www.marketedu.me) and a Senior Fellow at the Institute for Democracy and Economic Affairs (IDEAS) in Kuala Lumpur, Malaysia.
He is also a Research Advisor for Provalindo Nusa (Jakarta, Indonesia) and Senior Fellow (Southeast Asia) at the Property Rights Alliance (Washington, DC). Dr Ferlito is an Adjunct Professor at the School of Liberal Arts and Sciences of Taylor's University in Subang Jaya, Malaysia.
Carmelo Ferlito holds a Master in Economics (2003) and a Ph.D. in Economic History (2007) from the University of Verona in Italy. From 2004 to 2009 he worked as researcher with several Italian universities, including University of Verona, Salento University and University of Macerata. In 2017 he was Visiting Scholar at the University of Bergamo. Between 2013 and 2019 he has taught Microeconomic Theory and Policy and History of Economic Thought at INTI International College Subang (Subang Jaya) and at Universiti Kuala Lumpur-MFI (Bangi). As recognized international speaker, he has delivered guest lectures in prestigious institutions in Malaysia, Italy, Pakistan, Singapore and Indonesia.
His research activity is devoted to further expand free market economics as taught by the Austrian School of Economics, with particular reference to business cycle analysis, capital theory and entrepreneurship.
Dr Ferlito is author of five books and more than thirty scientific papers. His latest books are Hermeneutics of Capital. A Post-Austrian Theory for a Kaleidic World (Hauppauge, NY, 2016) and Phoenix Economics. From Crisis to Renascence (New York, 2013).
He has applied his theoretical analysis to policy studies, in particular to the Malaysian property market and housing policies and to the issues of financial literacy, cost of living and agricultural policies. His opinions have been reported by several Malaysian and international media, such as The Financial Times, Channel News Asia, Forbes, The Edge, The Star, The Malaysian Reserve, Free Malaysia Today, BFM 89.9, The Jakarta Post, The Business Recorder.
Carmelo Ferlito is not only a scholar. In the past ten years he developed a strong business background, working in Southeast Asia enhancing the regional business for multinational companies producing equipment for the poultry industry.
His research activity can be followed on the following page: https://carmeloferlito.academia.edu/.edit
A theoretical context for the economics of smuggling, in order to analyze cigarette illicit trade in Malaysia.
Research Interests:
The main target of the present paper has been to dismantle the idea of perfect competition intended as a state of affairs where competition is indeed absent; this is, unfortunately, the way in which competition is presented to economics... more
The main target of the present paper has been to dismantle the idea of perfect competition intended as a state of affairs where competition is indeed absent; this is, unfortunately, the way in which competition is presented to economics students.
With the support of Schumpeter, Hayek and Kirzner, I have then tried to replace that vision with the idea of a dynamic process unfolding in real time and therefore characterized by the unending emergence of novelty; this brings me to see the market process as open-ended dynamics where the outcome cannot be predicted. Competition is thus identified as a process of struggle between opposing forces (new versus old in Schumpeterian vision, alertness versus non-alertness in Kirzner).
Furthermore, competition is not an impersonal process; at its root, I have placed entrepreneurship, to stress that the process itself is not abstract but rather made of the interactions between decisions taken by living human beings (resulting from interpretations emerging from signals sent by market prices).
But the process of competition set in motion by entrepreneurship must have, by nature, a Nietzschean spirit, whereby the will to power pushes towards growth, so that a virtuous cycle of market growth, technical progress, productivity, higher income and higher demand is created, as can be hinted through all the scholarly work of Paolo Sylos Labini.
An oligopolistic capitalism is thus the natural consequence of competition, not because, as Schumpeter argued, the entrepreneurial function gets exhausted, but rather because concentration is the necessary condition for it to survive and prosper.
Such a trend is demonstrated not only by the growing market capitalization of big firms and by their growing number, which walked together with globalization, but also by the extensive role that big corporations play in the economy: they represent 10% of the business population, but they generate 60% of the GDP.
With the support of Schumpeter, Hayek and Kirzner, I have then tried to replace that vision with the idea of a dynamic process unfolding in real time and therefore characterized by the unending emergence of novelty; this brings me to see the market process as open-ended dynamics where the outcome cannot be predicted. Competition is thus identified as a process of struggle between opposing forces (new versus old in Schumpeterian vision, alertness versus non-alertness in Kirzner).
Furthermore, competition is not an impersonal process; at its root, I have placed entrepreneurship, to stress that the process itself is not abstract but rather made of the interactions between decisions taken by living human beings (resulting from interpretations emerging from signals sent by market prices).
But the process of competition set in motion by entrepreneurship must have, by nature, a Nietzschean spirit, whereby the will to power pushes towards growth, so that a virtuous cycle of market growth, technical progress, productivity, higher income and higher demand is created, as can be hinted through all the scholarly work of Paolo Sylos Labini.
An oligopolistic capitalism is thus the natural consequence of competition, not because, as Schumpeter argued, the entrepreneurial function gets exhausted, but rather because concentration is the necessary condition for it to survive and prosper.
Such a trend is demonstrated not only by the growing market capitalization of big firms and by their growing number, which walked together with globalization, but also by the extensive role that big corporations play in the economy: they represent 10% of the business population, but they generate 60% of the GDP.
Research Interests:
Can we say that the mafia is a spontaneous order, an unplanned but orderly association, the result of human action but not of human design? The paper investigates how the lack of a founding moment for the entity called the “mafia” points... more
Can we say that the mafia is a spontaneous order, an unplanned but orderly association, the result of human action but not of human design? The paper investigates how the lack of a founding moment for the entity called the “mafia” points toward a positive answer. It seems plausible to say that the continuous turnover of different foreign dominations over the island
of Sicily generated two important phenomena: 1) a lack of trust between individuals, and between individuals and institutions, and 2) the absence of centralized institutions recognized as the centre of the monopoly of force that would have been able to dictate and en-force a code of social conduct.
These two phenomena created both the need for mediators for individual transactions, and more generally, a demand for the role of institutions. Mafia people filled the gap, initially as “persons of respect” whose authority was recognized, accepted and feared, and then by becoming actual institutions themselves, blending with official institutions and creating a recognized and followed code of social conduct.
of Sicily generated two important phenomena: 1) a lack of trust between individuals, and between individuals and institutions, and 2) the absence of centralized institutions recognized as the centre of the monopoly of force that would have been able to dictate and en-force a code of social conduct.
These two phenomena created both the need for mediators for individual transactions, and more generally, a demand for the role of institutions. Mafia people filled the gap, initially as “persons of respect” whose authority was recognized, accepted and feared, and then by becoming actual institutions themselves, blending with official institutions and creating a recognized and followed code of social conduct.
Research Interests:
Media Statement FOR IMMEDIATE RELEASE CME Estimates Malaysia Can Save Over RM 1.1 Billion in Government Spending if Harm Reduction Policies Are Adopted Monday, 02 OCTOBER 2023: The Center for Market Education (CME) estimates that... more
Media Statement
FOR IMMEDIATE RELEASE
CME Estimates Malaysia Can Save Over RM 1.1 Billion in Government Spending if Harm Reduction Policies Are Adopted
Monday, 02 OCTOBER 2023: The Center for Market Education (CME) estimates that over RM 1.1 billion in government spending can be saved every year if the government adopts harm reduction policies in the industries of public health and transportation. Furthermore, more than RM 305 billion can be generated in domestic and foreign investments and more than 300,000 jobs created in the next ten years in the semiconductor industry alone. This research finding is outlined in the recently released Policy Paper Nr 6, Harm Reduction, Healthcare Savings and Economic Growth: A Strategy for Malaysia, authored by Dr Carmelo Ferlito, CME CEO, and Imran Shamsunahar, CME Research Assistant. The new paper enriches the series of studies in health economics which CME inaugurated in 2021 with a very well received work on dietary supplements.
The new paper introduces the concept of harm reduction, defining it as a public policy strategy designed to limit the negative social and physical consequences associated with various human behaviors, both legal and illegal. A harm reduction approach rejects the usage of restrictions or bans, and instead embraces policies that provide more choices for less harmful alternatives.
«Among other topics, in the past two and a half years we have produced several works on health-related polices and their impact on the economy», stated Dr Ferlito; «it is a fascinating field of research, which touches in a tangible way the subject which is at the heart of CME activity: individual freedom».
The paper outlines three key findings
1. Estimating the healthcare savings brought by the adoption of harm reduction policies;
2. Estimating the positive spillovers on the economy brought by the adoption of harm reduction policies in terms of investments and job creation;
3. Listing the pillars for a comprehensive policy strategy inspired by harm reduction.
HEALTHCARE SAVINGS
«Starting with the impact of harm reduction applied to the consumption of nicotine products such as e-cigarettes and heated tobacco products, we estimate healthcare savings of up to RM 787.78 million in ten years, deriving from declines in adult smoking due to switching to less harmful alternatives. Furthermore, switching just 1% of the smoking population to alternative products could potentially save RM 2.61 billion in loss of productivity (in this case, gain of productivity). In other words, this represents a yearly saving equivalent to 0.16% of Malaysia’s GDP», Imran explained.
Looking at the estimated healthcare saving deriving from the application of harm reduction to electric vehicles, the paper projected that achieving the WHO 2025 targets would bring the healthcare cost down to USD 21,919 million (RM 103,195 million) (-70%) due to air pollution. Based on the government’s targets of having 15% of the total industry volume (TIV) made up of EVs and hybrids by 2030, and to 38% by 2040, it was projected that healthcare savings would be between 6.43% and 24.93% of the current pollution-related costs; these means to obtain savings from reduced emissions between USD 755.89 million and USD 1,157.27 million (RM 3,558.73 and RM 5,448.43 million) by 2030 and between USD 1,914.92 million and USD 2,931.75 million (RM 9,015.44 and RM 13,802.68 million) by 2040.
With regard to sugar alternatives, the direct healthcare costs of diabetes were analyzed. CME estimated that the direct and indirect costs for Malaysian society deriving from diabetes amount to almost RM 15 billion per year. Through the consumption of chromium picolinate, RM 1.31 can be saved per RM 1 spent on chromium picolinate, amounting to a total potential net cost savings of RM 248.27 million per year. Looking at the implementation of differential taxation on sugar content, it was estimated that a 10% drop in sugary drink consumption will potentially turn into a 0.7% healthcare cost saving with regards to diabetes-related healthcare costs, or RM 105 million.
ECONOMIC GROWTH AND JOB CREATION
As semiconductors are an essential component for both EVs and electronic devices for e-cigarettes and heated tobacco products, and given the prominent role of Malaysia in this industry, the paper estimated that the right set of harm reduction policies can generate the following spillover effects on the semiconductor industry and its ecosystem over a period of ten years:
- Almost USD 65 billion (more than RM 305 billion) in private and government DDIs and FDIs through more than 550 projects;
- More than 300,000 jobs (direct, indirect and induced).
Furthermore, if the MoH target to reduce smoking prevalence to 5% is achieved with harm reduction policies, the following positive spillovers in the vaping/HNB industry can be generated:
- Vape industry retail value growing from RM 2,490 million to RM 8,790.65 million (+253.04%);
- Number of workers involved in the industry growing from 31,500 to 82,109 (+160.66%);
- Number of retailers growing from 9,750 to 21,929 (+124.92%);
- Number of importers growing from 100 to 233 (+123.29%);
- Heat Not Burn retail value growing from RM 191 million to RM 528.04 million (+176.46%).
POLICY GUIDELINES
The paper is concluded with a set of policy guidelines inspired by harm reduction and to be applied to the specific case of Malaysia. These policies should be centred on the following pillars:
- Avoid prohibition and uniform taxation, as such policies only favour the growth of illicit trade and Malaysia has one of the highest levels of illicit cigarette trade globally;
- Follow international best practices such as the United Kingdom and New Zealand;
- Favour a fiscal action centred on differentiated taxation, whereby taxation is proportional to the harm level;
- Nurture innovation as the emergence of less harmful products is strictly linked to an ecosystem that favours entrepreneurship and thus innovation; in order to do so, the following actions are suggested:
o
o Favouring industrial concentration, as firm dimensions are a key element for investing in R&D and innovation;
o Promoting trade liberalization, so that a bigger potential market size creates an incentive to innovation;
o Promoting humanistic education as a key for critical thinking, as innovation is based on challenging common wisdom;
o Promoting human and intellectual freedom;
o Strengthening institutions and the rule of law.
For media enquiries:
- General email: centerformarketeducation@gmail.com.
- Dr Carmelo Ferlito, CEO of CME: T: +60-192394148 – Email: carmelo.ferlito@gmail.com.
About CME: The Center for Market Education (CME) is a boutique think-tank based in Kuala Lumpur, Malaysia, and Jakarta, Indonesia.
As an academic and educational institution, CME aims to promote a more pluralistic and multidisciplinary approach to economics and to spread the knowledge of a sounder economics, grounded in the understanding of market forces.
In order to do so, CME is not only involved in academic initiatives, but it organizes seminars, webinars and tailor-made economics classes for students, journalists, businesspeople and professionals who wish to better understand the relevance of economics for their daily lives and activities.
Economics matters and needs to be presented in a fashion in which the link with reality is clearly visible. In this sense, we look not only at theoretical economics but also at policy making, with an emphasis on the unintended consequences generated by political actions. Visit https://marketedu.me/.
FOR IMMEDIATE RELEASE
CME Estimates Malaysia Can Save Over RM 1.1 Billion in Government Spending if Harm Reduction Policies Are Adopted
Monday, 02 OCTOBER 2023: The Center for Market Education (CME) estimates that over RM 1.1 billion in government spending can be saved every year if the government adopts harm reduction policies in the industries of public health and transportation. Furthermore, more than RM 305 billion can be generated in domestic and foreign investments and more than 300,000 jobs created in the next ten years in the semiconductor industry alone. This research finding is outlined in the recently released Policy Paper Nr 6, Harm Reduction, Healthcare Savings and Economic Growth: A Strategy for Malaysia, authored by Dr Carmelo Ferlito, CME CEO, and Imran Shamsunahar, CME Research Assistant. The new paper enriches the series of studies in health economics which CME inaugurated in 2021 with a very well received work on dietary supplements.
The new paper introduces the concept of harm reduction, defining it as a public policy strategy designed to limit the negative social and physical consequences associated with various human behaviors, both legal and illegal. A harm reduction approach rejects the usage of restrictions or bans, and instead embraces policies that provide more choices for less harmful alternatives.
«Among other topics, in the past two and a half years we have produced several works on health-related polices and their impact on the economy», stated Dr Ferlito; «it is a fascinating field of research, which touches in a tangible way the subject which is at the heart of CME activity: individual freedom».
The paper outlines three key findings
1. Estimating the healthcare savings brought by the adoption of harm reduction policies;
2. Estimating the positive spillovers on the economy brought by the adoption of harm reduction policies in terms of investments and job creation;
3. Listing the pillars for a comprehensive policy strategy inspired by harm reduction.
HEALTHCARE SAVINGS
«Starting with the impact of harm reduction applied to the consumption of nicotine products such as e-cigarettes and heated tobacco products, we estimate healthcare savings of up to RM 787.78 million in ten years, deriving from declines in adult smoking due to switching to less harmful alternatives. Furthermore, switching just 1% of the smoking population to alternative products could potentially save RM 2.61 billion in loss of productivity (in this case, gain of productivity). In other words, this represents a yearly saving equivalent to 0.16% of Malaysia’s GDP», Imran explained.
Looking at the estimated healthcare saving deriving from the application of harm reduction to electric vehicles, the paper projected that achieving the WHO 2025 targets would bring the healthcare cost down to USD 21,919 million (RM 103,195 million) (-70%) due to air pollution. Based on the government’s targets of having 15% of the total industry volume (TIV) made up of EVs and hybrids by 2030, and to 38% by 2040, it was projected that healthcare savings would be between 6.43% and 24.93% of the current pollution-related costs; these means to obtain savings from reduced emissions between USD 755.89 million and USD 1,157.27 million (RM 3,558.73 and RM 5,448.43 million) by 2030 and between USD 1,914.92 million and USD 2,931.75 million (RM 9,015.44 and RM 13,802.68 million) by 2040.
With regard to sugar alternatives, the direct healthcare costs of diabetes were analyzed. CME estimated that the direct and indirect costs for Malaysian society deriving from diabetes amount to almost RM 15 billion per year. Through the consumption of chromium picolinate, RM 1.31 can be saved per RM 1 spent on chromium picolinate, amounting to a total potential net cost savings of RM 248.27 million per year. Looking at the implementation of differential taxation on sugar content, it was estimated that a 10% drop in sugary drink consumption will potentially turn into a 0.7% healthcare cost saving with regards to diabetes-related healthcare costs, or RM 105 million.
ECONOMIC GROWTH AND JOB CREATION
As semiconductors are an essential component for both EVs and electronic devices for e-cigarettes and heated tobacco products, and given the prominent role of Malaysia in this industry, the paper estimated that the right set of harm reduction policies can generate the following spillover effects on the semiconductor industry and its ecosystem over a period of ten years:
- Almost USD 65 billion (more than RM 305 billion) in private and government DDIs and FDIs through more than 550 projects;
- More than 300,000 jobs (direct, indirect and induced).
Furthermore, if the MoH target to reduce smoking prevalence to 5% is achieved with harm reduction policies, the following positive spillovers in the vaping/HNB industry can be generated:
- Vape industry retail value growing from RM 2,490 million to RM 8,790.65 million (+253.04%);
- Number of workers involved in the industry growing from 31,500 to 82,109 (+160.66%);
- Number of retailers growing from 9,750 to 21,929 (+124.92%);
- Number of importers growing from 100 to 233 (+123.29%);
- Heat Not Burn retail value growing from RM 191 million to RM 528.04 million (+176.46%).
POLICY GUIDELINES
The paper is concluded with a set of policy guidelines inspired by harm reduction and to be applied to the specific case of Malaysia. These policies should be centred on the following pillars:
- Avoid prohibition and uniform taxation, as such policies only favour the growth of illicit trade and Malaysia has one of the highest levels of illicit cigarette trade globally;
- Follow international best practices such as the United Kingdom and New Zealand;
- Favour a fiscal action centred on differentiated taxation, whereby taxation is proportional to the harm level;
- Nurture innovation as the emergence of less harmful products is strictly linked to an ecosystem that favours entrepreneurship and thus innovation; in order to do so, the following actions are suggested:
o
o Favouring industrial concentration, as firm dimensions are a key element for investing in R&D and innovation;
o Promoting trade liberalization, so that a bigger potential market size creates an incentive to innovation;
o Promoting humanistic education as a key for critical thinking, as innovation is based on challenging common wisdom;
o Promoting human and intellectual freedom;
o Strengthening institutions and the rule of law.
For media enquiries:
- General email: centerformarketeducation@gmail.com.
- Dr Carmelo Ferlito, CEO of CME: T: +60-192394148 – Email: carmelo.ferlito@gmail.com.
About CME: The Center for Market Education (CME) is a boutique think-tank based in Kuala Lumpur, Malaysia, and Jakarta, Indonesia.
As an academic and educational institution, CME aims to promote a more pluralistic and multidisciplinary approach to economics and to spread the knowledge of a sounder economics, grounded in the understanding of market forces.
In order to do so, CME is not only involved in academic initiatives, but it organizes seminars, webinars and tailor-made economics classes for students, journalists, businesspeople and professionals who wish to better understand the relevance of economics for their daily lives and activities.
Economics matters and needs to be presented in a fashion in which the link with reality is clearly visible. In this sense, we look not only at theoretical economics but also at policy making, with an emphasis on the unintended consequences generated by political actions. Visit https://marketedu.me/.
Research Interests:
Can we say that the mafia is a spontaneous order, an unplanned but orderly association, the result of human action but not of human design? The paper investigates how the lack of a founding moment for the entity called the “mafia” points... more
Can we say that the mafia is a spontaneous order,
an unplanned but orderly association, the result of human
action but not of human design? The paper investigates how
the lack of a founding moment for the entity called the “mafia”
points toward a positive answer. It seems plausible to
say that the continuous turnover of different foreign dominations
over the island of Sicily generated two important
phenomena: 1) a lack of trust between individuals, and between
individuals and institutions, and 2) the absence of
centralized institutions recognized as the centre of the monopoly
of force that would have been able to dictate and enforce
a code of social conduct.
These two phenomena created both the need for mediators
for individual transactions, and more generally, a
demand for the role of institutions. Mafia people filled the
gap, initially as “persons of respect” whose authority was
recognized, accepted and feared, and then by becoming actual
institutions themselves, blending with official institutions
and creating a recognized and followed code of social
conduct.
an unplanned but orderly association, the result of human
action but not of human design? The paper investigates how
the lack of a founding moment for the entity called the “mafia”
points toward a positive answer. It seems plausible to
say that the continuous turnover of different foreign dominations
over the island of Sicily generated two important
phenomena: 1) a lack of trust between individuals, and between
individuals and institutions, and 2) the absence of
centralized institutions recognized as the centre of the monopoly
of force that would have been able to dictate and enforce
a code of social conduct.
These two phenomena created both the need for mediators
for individual transactions, and more generally, a
demand for the role of institutions. Mafia people filled the
gap, initially as “persons of respect” whose authority was
recognized, accepted and feared, and then by becoming actual
institutions themselves, blending with official institutions
and creating a recognized and followed code of social
conduct.
Research Interests:
Despite certain lines may give the opposite impression, Mises never claimed that economic theorizing should be disconnected from (historical) reality. On the contrary, by stressing the importance of looking to reality for the facts from... more
Despite certain lines may give the opposite impression, Mises never claimed that economic theorizing should be disconnected from (historical) reality. On the contrary, by stressing the importance of looking to reality for the facts from which economic theory should be built, Mises paralleled Schumpeter closely in arguing that a vision, shaped by the observation of reality, is necessary, together with introspection, for praxeology. In the works of Professor Huerta de Soto, it is self-evident that such a reconciliation brings about important fruits for the emergence of a meaningful economic theory. This chapter underscores the possibility of solving the apparent dichotomy between history and economics through the elaboration of economic theorizing which walks together with the reference to true observable facts.
Research Interests:
CARMELO FERLITO, Menuju Strategi Harm Reduction Ilmiah: Sebuah Pengantar Teoritis, «CME-ID Policy Brief», 1, Jakarta (ID), Center for Market Education Indonesia, 2023.
Research Interests:
Entering into the details of specific policy suggestions is beyond the scope of the present policy brief, but the reflections herewith presented should constitute the necessary theoretical and institutional guidelines for the evolution of... more
Entering into the details of specific policy suggestions is beyond
the scope of the present policy brief, but the reflections herewith
presented should constitute the necessary theoretical and
institutional guidelines for the evolution of a well-grounded harm
reduction strategy.
In particular, we have observed that the proper way to address
“pleasure consumption” should originate in a process of sound
economic reasoning and trade-off analysis, rather than crusades in
which the vision of policy makers replaces the free will of individuals.
Following Ronald Coase’s analysis, in the presence of externalities
we should not compare the actual market outcome with the
idealistic vision proposed by rulers’ good intentions. On the contrary,
a «better approach would seem to be to start our analysis with
a situation approximating that which actually exists, to examine
the effects of a proposed policy change and to attempt to decide
whether the new situation would be, in total, better or worse than
the original one. In this way, conclusions for policy would have some
relevance to the actual situation». At the same time, it should be
considered that any attempt to protect subject B from externalities
produced by subject A will create an undesired harm to subject A
in the form of a lesser degree of pleasure consumption.
The approach embraced here is rooted in the idea that every
human action, including policy making, is bounded by limits of
knowledge that make it impossible for any given action to simply
achieve the desired outcome, sic et simpliciter. The complexity of
individual actions and interactions between individuals unfolding in
time should lead policy making toward humility and the recognition
of the limits of any one individual’s knowledge, rather than toward
the pretence of knowledge.
Furthermore, in the analysis we have showed how the traditional
approach to externalities and pleasure consumption, grounded in
prohibition and taxation, does not actually stop the consumption
of “sinful products”; rather, while violating principles of horizontal
and vertical equity and being regressive, it shifts consumption
toward lower quality and illicit products, leading to unemployment
and lower fiscal revenues.
Thus, a proper approach to harm reduction, while respecting
freedom of choice, should aim at nurturing an environment
conducive to innovation, and such an environment is mainly built
around the right set of institutions. In this regard, Malaysia needs
to improve in terms of political stability, control of corruption, the
process of registering properties, patent protection, and copyright
protection.
the scope of the present policy brief, but the reflections herewith
presented should constitute the necessary theoretical and
institutional guidelines for the evolution of a well-grounded harm
reduction strategy.
In particular, we have observed that the proper way to address
“pleasure consumption” should originate in a process of sound
economic reasoning and trade-off analysis, rather than crusades in
which the vision of policy makers replaces the free will of individuals.
Following Ronald Coase’s analysis, in the presence of externalities
we should not compare the actual market outcome with the
idealistic vision proposed by rulers’ good intentions. On the contrary,
a «better approach would seem to be to start our analysis with
a situation approximating that which actually exists, to examine
the effects of a proposed policy change and to attempt to decide
whether the new situation would be, in total, better or worse than
the original one. In this way, conclusions for policy would have some
relevance to the actual situation». At the same time, it should be
considered that any attempt to protect subject B from externalities
produced by subject A will create an undesired harm to subject A
in the form of a lesser degree of pleasure consumption.
The approach embraced here is rooted in the idea that every
human action, including policy making, is bounded by limits of
knowledge that make it impossible for any given action to simply
achieve the desired outcome, sic et simpliciter. The complexity of
individual actions and interactions between individuals unfolding in
time should lead policy making toward humility and the recognition
of the limits of any one individual’s knowledge, rather than toward
the pretence of knowledge.
Furthermore, in the analysis we have showed how the traditional
approach to externalities and pleasure consumption, grounded in
prohibition and taxation, does not actually stop the consumption
of “sinful products”; rather, while violating principles of horizontal
and vertical equity and being regressive, it shifts consumption
toward lower quality and illicit products, leading to unemployment
and lower fiscal revenues.
Thus, a proper approach to harm reduction, while respecting
freedom of choice, should aim at nurturing an environment
conducive to innovation, and such an environment is mainly built
around the right set of institutions. In this regard, Malaysia needs
to improve in terms of political stability, control of corruption, the
process of registering properties, patent protection, and copyright
protection.
Research Interests:
Professor Axel Leijonhufvud passed away few months ago, at the age of 89. Despite the fact that the contribution he made to economics has been widely recognized, his approach remains 'problematic' because of his dialogue and proximity... more
Professor Axel Leijonhufvud passed away few months ago, at the age of 89. Despite the fact that the contribution he made to economics has been widely recognized, his approach remains 'problematic' because of his dialogue and proximity with different streams of thought, and in particular with the Austrian School. This short recollection, developed from an Austrian perspective, touches only briefly on Leijonhufvud's hybrid interpretation of the Great Recession. More space is instead devoted to analysing his institutional approach to the phenomenon of inflation and its link with monetary policy and monetary regimes. Some reflections are focused on the importance of microfoundations and of studying the market process as a process of intertemporal coordination, with a final call for humility within the economics profession.
Research Interests:
SITARA KARIM and CARMELO FERLITO, The Protection of Intellectual Property Rights in Malaysia, Washington, DC, Property Rights Alliance, 2022.
Research Interests:
• Malaysia’s tobacco prevalence is on a slight downward trend at a compound annual growth rate (CAGR) of -1.0%. However, Malaysia’s current approach to smoking cessation is insufficient and incapable of achieving the national target of... more
• Malaysia’s tobacco prevalence is on a slight downward trend at a compound annual growth rate (CAGR) of -1.0%. However, Malaysia’s current approach to smoking cessation is insufficient and incapable of achieving the national target of lowering smoking prevalence to 15% by 2025, followed by an endgame of less than 5% by 2045.
• With the adoption of harm reduction approaches, the Malaysian smoking population is projected to drop to 4 million by 2025 compared to 4.88 million smokers in 2019. Also, Malaysia could save on healthcare costs in relation to smoking by RM1.33 billion (18%) in 2025.
• Various countries have demonstrated better achievements in tobacco harm reduction (THR) initiatives. This policy report highlights four countries’ successful examples in THR: the United Kingdom, New Zealand, Japan, and South Korea.
• Our survey on 1,556 respondents to understand the impact of the COVID-19 pandemic on Malaysians’ behaviours and lifestyle revealed that:
• The inclination to consume cigarettes (86.06%) is higher than alcohol (48.07%) and drugs (8.26%) during the lockdown, possibly because cigarettes are more accessible and less frowned upon compared to others.
• 35.56% have used alternative nicotine products, and 16.28% of the respondents have embarked on a nicotine replacement therapy journey.
• The lower the income level and income certainty of respondents, the higher the inclination to purchase cheaper cigarettes if they were on a tight budget.
• The higher the income level and income certainty of respondents, the higher the possibility of having tried using non-combustible nicotine products.
• Generally, respondents who have tried non-combustible nicotine products are more comfortable and more confident with acknowledging the products as effective substitutes to conventional cigarettes. These respondents are also more welcoming to the idea of incorporating non-combustible nicotine products in smoking cessation policies, instead of imposing high taxation on tobacco products.
• A change of paradigm is needed as the current approach to harm-reduction based on punishment presents multiple problems, such as control over freedom of choices, overambitious policy targets, violation of horizontal and vertical equity in taxation, and thriving illicit markets and smuggling activities. Consequently, incentives and rewards are better than punishments. A new approach to harm reduction should incorporate using more rewards to incentivise behavioural change, focusing entirely on decreasing traditional cigarettes, while restrictions and taxes related to healthier alternatives should be minimised.
• Evidence-based policies are crucial, in which in-depth local and independent scientific research supported by the availability of comprehensive and updated data is highly important. In addition, dialogues and engagements with key stakeholders and industry players should be held to ensure well-planned policies are designed and effective laws are enacted.
• A combination of both idealist and pragmatist approaches to combat harmful smoking habits is the best way forward. A pragmatic paradigm is a realistic recognition that while the preferred goal is complete cessation of harmful smoking habits, this goal is not always achievable.
• In the immediate term, there is a need to humbly re-evaluate the effectiveness of current conventional anti-smoking policies, to ensure smoking prevention among the younger generation and advocate towards smoking cessation efforts.
• In line with global trends, a sizable amount of tobacco-related tax revenue should be earmarked as a source for financing tobacco-control programmes; especially for research and advocacy on better and safer alternatives.
• Legislative constraints in the current status quo should be addressed to increase the accessibility of Nicotine Replacement Therapy (NRT) and other tobacco harm reduction alternatives.
• Education and awareness campaigns need to be designed based on a clear understanding of human behaviour, with a clear message centred around actions and consequences to empower consumers to make informed choices, instead of a fear-based approach.
• A fresh paradigm for taxation on tobacco is highly essential, including lowering excise taxes on conventional cigarettes in a move to stem the illicit tobacco market, implementing risk-proportionate taxation on less harmful alternatives, and offering the double deduction cost tool. A favourable tax regime, in addition to pro-research and development policies, will create an ecosystem where innovation can flourish in Malaysia.
• With the adoption of harm reduction approaches, the Malaysian smoking population is projected to drop to 4 million by 2025 compared to 4.88 million smokers in 2019. Also, Malaysia could save on healthcare costs in relation to smoking by RM1.33 billion (18%) in 2025.
• Various countries have demonstrated better achievements in tobacco harm reduction (THR) initiatives. This policy report highlights four countries’ successful examples in THR: the United Kingdom, New Zealand, Japan, and South Korea.
• Our survey on 1,556 respondents to understand the impact of the COVID-19 pandemic on Malaysians’ behaviours and lifestyle revealed that:
• The inclination to consume cigarettes (86.06%) is higher than alcohol (48.07%) and drugs (8.26%) during the lockdown, possibly because cigarettes are more accessible and less frowned upon compared to others.
• 35.56% have used alternative nicotine products, and 16.28% of the respondents have embarked on a nicotine replacement therapy journey.
• The lower the income level and income certainty of respondents, the higher the inclination to purchase cheaper cigarettes if they were on a tight budget.
• The higher the income level and income certainty of respondents, the higher the possibility of having tried using non-combustible nicotine products.
• Generally, respondents who have tried non-combustible nicotine products are more comfortable and more confident with acknowledging the products as effective substitutes to conventional cigarettes. These respondents are also more welcoming to the idea of incorporating non-combustible nicotine products in smoking cessation policies, instead of imposing high taxation on tobacco products.
• A change of paradigm is needed as the current approach to harm-reduction based on punishment presents multiple problems, such as control over freedom of choices, overambitious policy targets, violation of horizontal and vertical equity in taxation, and thriving illicit markets and smuggling activities. Consequently, incentives and rewards are better than punishments. A new approach to harm reduction should incorporate using more rewards to incentivise behavioural change, focusing entirely on decreasing traditional cigarettes, while restrictions and taxes related to healthier alternatives should be minimised.
• Evidence-based policies are crucial, in which in-depth local and independent scientific research supported by the availability of comprehensive and updated data is highly important. In addition, dialogues and engagements with key stakeholders and industry players should be held to ensure well-planned policies are designed and effective laws are enacted.
• A combination of both idealist and pragmatist approaches to combat harmful smoking habits is the best way forward. A pragmatic paradigm is a realistic recognition that while the preferred goal is complete cessation of harmful smoking habits, this goal is not always achievable.
• In the immediate term, there is a need to humbly re-evaluate the effectiveness of current conventional anti-smoking policies, to ensure smoking prevention among the younger generation and advocate towards smoking cessation efforts.
• In line with global trends, a sizable amount of tobacco-related tax revenue should be earmarked as a source for financing tobacco-control programmes; especially for research and advocacy on better and safer alternatives.
• Legislative constraints in the current status quo should be addressed to increase the accessibility of Nicotine Replacement Therapy (NRT) and other tobacco harm reduction alternatives.
• Education and awareness campaigns need to be designed based on a clear understanding of human behaviour, with a clear message centred around actions and consequences to empower consumers to make informed choices, instead of a fear-based approach.
• A fresh paradigm for taxation on tobacco is highly essential, including lowering excise taxes on conventional cigarettes in a move to stem the illicit tobacco market, implementing risk-proportionate taxation on less harmful alternatives, and offering the double deduction cost tool. A favourable tax regime, in addition to pro-research and development policies, will create an ecosystem where innovation can flourish in Malaysia.
Research Interests:
The Western world in general is experiencing price increases that have not been recorded in decades; in the United States in particular, inflation is now running at a 40-year high of 7.5%, and the Federal Reserve is puzzling over how to... more
The Western world in general is experiencing price increases that have not been recorded in decades; in the United States in particular, inflation is now running at a 40-year high of 7.5%, and the Federal Reserve is puzzling over how to exit the inflation tunnel without generating a recession.
With the consumer and producer price indexes recording respectively a 3.23% and a 9.99% annual increase in 2021, led by energy and food items, the debate about inflation finally reached Malaysia too; as happened everywhere else in the world, supply-chain disruptions have been blamed, while the monetary nature of inflation has not been recognized.
The Center for Market Education first warned about inflationary pressures in March 2021 and continued to do so throughout the year. We stressed in particular that inflation is a monetary phenomenon due to the quantity of money rising faster than output. We also explained how the increased quantity of money, generated by expansionary fiscal and monetary policies implemented to address the harms created by lockdowns, created a dichotomy between the real economy and the (over)availability of financial means, a dichotomy that could result in a distortion of the production structure, in a boom-and-bust cycle and, ultimately, in unemployment.
The results of such policies, which were a reaction not to COVID-19 per se, but to the harm created by stay-at-home orders, can be summarized as follows:
- Excess money supply, generating inflation;
- Price inflation, while during an economic crisis price deflation should be favoured (as we shall see);
- GDP still below the 2019 level, despite the expansionary policies;
- A fragile recovery resting on government consumption and government aid-led private consumption;
- A non-friendly ecosystem for investments.
We need to stress, once again, the unavoidable need for a plan of gradual government spending cuts in order to contain inflation, while a rise in interest rates would be detrimental to the investments that are very much needed now.
In this paper, we emphasize that another necessary measure is to abandon the fear of deflation which guides many choices in monetary policy. Are falling prices really such a disaster for an economy that they justify a massive liquidity injection, or are they just an excuse to allow welcome money production to benefit those disadvantaged by price deflation?
In the paper we argue that price deflation in most cases is something natural to the market, or that it is the beneficial – although painful – market reaction to government intervention. We conclude that policies enacted to prevent price deflation lead to harmful consequences for many economic agents.
The general fear of deflation is unfounded. Price deflation can be the natural and welcome consequence of growth, it can bring about real cash building, and it can shorten the recession after an artificial boom. Its most unpleasant form is credit contraction deflation, which decreases the money supply; however, that is only possible in a fractional reserve banking system that has previously created money out of nothing. The main effect is a redistribution of the existing wealth in the economy, rather than a necessary decline in general output, as assumed in various arguments.
The fear of deflation is artificially fed by those who benefit from the creation of new money, since they spend the new money first. Banks and government, as well as businesses that depend on a credit expansion boom, fear deflation and profit from the money production they recommend as a prescription against deflation, at the expense of other economic agents who pay higher prices than they otherwise would. By artificially lowering interest rates and distorting the structure of production, it is precisely expansionary monetary policy that triggers the greatest economic disasters and makes credit contraction possible in the first place. In a full reserve commodity money standard, price deflation is completely harmless and the symptom of strong economic growth or successful cash accumulation.
As our analysis shows, the inflationary policies in the years following the Great Recession must be considered a policy error, as they delayed recovery and reduced economic growth, and their price-inflationary consequences became more and more visible. This policy error was based on or justified by a faulty theory of inflation, which we have addressed in this paper by offering what we consider to be a more correct theory.
In a period such as the present that is characterized by strong inflationary pressures, price deflation should not be discouraged. Rather, we suggest the following policy measures:
- Allow productivity growth deflation by nurturing an environment conducive to innovation;
- Allow cash-building deflation, as savings are the necessary means for enhancing a process of sound growth;
- Reduce government spending to reduce the quantity of money in circulation;
- Reforms should be introduced to reinstate the primacy of balanced budgets.
With the consumer and producer price indexes recording respectively a 3.23% and a 9.99% annual increase in 2021, led by energy and food items, the debate about inflation finally reached Malaysia too; as happened everywhere else in the world, supply-chain disruptions have been blamed, while the monetary nature of inflation has not been recognized.
The Center for Market Education first warned about inflationary pressures in March 2021 and continued to do so throughout the year. We stressed in particular that inflation is a monetary phenomenon due to the quantity of money rising faster than output. We also explained how the increased quantity of money, generated by expansionary fiscal and monetary policies implemented to address the harms created by lockdowns, created a dichotomy between the real economy and the (over)availability of financial means, a dichotomy that could result in a distortion of the production structure, in a boom-and-bust cycle and, ultimately, in unemployment.
The results of such policies, which were a reaction not to COVID-19 per se, but to the harm created by stay-at-home orders, can be summarized as follows:
- Excess money supply, generating inflation;
- Price inflation, while during an economic crisis price deflation should be favoured (as we shall see);
- GDP still below the 2019 level, despite the expansionary policies;
- A fragile recovery resting on government consumption and government aid-led private consumption;
- A non-friendly ecosystem for investments.
We need to stress, once again, the unavoidable need for a plan of gradual government spending cuts in order to contain inflation, while a rise in interest rates would be detrimental to the investments that are very much needed now.
In this paper, we emphasize that another necessary measure is to abandon the fear of deflation which guides many choices in monetary policy. Are falling prices really such a disaster for an economy that they justify a massive liquidity injection, or are they just an excuse to allow welcome money production to benefit those disadvantaged by price deflation?
In the paper we argue that price deflation in most cases is something natural to the market, or that it is the beneficial – although painful – market reaction to government intervention. We conclude that policies enacted to prevent price deflation lead to harmful consequences for many economic agents.
The general fear of deflation is unfounded. Price deflation can be the natural and welcome consequence of growth, it can bring about real cash building, and it can shorten the recession after an artificial boom. Its most unpleasant form is credit contraction deflation, which decreases the money supply; however, that is only possible in a fractional reserve banking system that has previously created money out of nothing. The main effect is a redistribution of the existing wealth in the economy, rather than a necessary decline in general output, as assumed in various arguments.
The fear of deflation is artificially fed by those who benefit from the creation of new money, since they spend the new money first. Banks and government, as well as businesses that depend on a credit expansion boom, fear deflation and profit from the money production they recommend as a prescription against deflation, at the expense of other economic agents who pay higher prices than they otherwise would. By artificially lowering interest rates and distorting the structure of production, it is precisely expansionary monetary policy that triggers the greatest economic disasters and makes credit contraction possible in the first place. In a full reserve commodity money standard, price deflation is completely harmless and the symptom of strong economic growth or successful cash accumulation.
As our analysis shows, the inflationary policies in the years following the Great Recession must be considered a policy error, as they delayed recovery and reduced economic growth, and their price-inflationary consequences became more and more visible. This policy error was based on or justified by a faulty theory of inflation, which we have addressed in this paper by offering what we consider to be a more correct theory.
In a period such as the present that is characterized by strong inflationary pressures, price deflation should not be discouraged. Rather, we suggest the following policy measures:
- Allow productivity growth deflation by nurturing an environment conducive to innovation;
- Allow cash-building deflation, as savings are the necessary means for enhancing a process of sound growth;
- Reduce government spending to reduce the quantity of money in circulation;
- Reforms should be introduced to reinstate the primacy of balanced budgets.
Research Interests:
While in the early 1930s Keynes and Hayek were the major figures in a heated academic debate about money and capital, in which Keynes also and especially involved the Italian Piero Sraffa, it might seem at first sight that the Austrian... more
While in the early 1930s Keynes and Hayek were the major figures in a heated academic debate about money and capital, in which Keynes also and especially involved the Italian Piero Sraffa, it might seem at first sight that the Austrian economist set aside an organic demolition of the ideas expressed in 1936 by his rival in the General Theory. Hayek himself, in the future, would regret not having devoted an organic work to criticising the new Keynesian theories. However, as demonstrated in Sanz Bas (2011), although it is not possible to find a debate such as the one on the Treatise on Money, Hayek's subsequent works do include timely and reasoned criticisms as regards the main conclusions of the new Cambridge macroeconomics. But the 'Austrian knight' of a new Vienna-Cambridge debate, in the subsequent decades, was the German economist Ludwig M. Lachmann (1906-1990), a student of Hayek at LSE during the 1930s and later a professor in Johannesburg and New York. Lachmann was one of the protagonists of the Austrian revival after 1974 and the founding leader of the 'hermeneutic stream', opposed by the Rothbardian stream. Lachmann, defending Keynes's subjectivism and expectation theory, revived the Vienna-Cambridge controversy, criticising not Keynes but his followers, in particular the 'new' Cambridge School, developed by Joan Robinson and Piero Sraffa. Lachmann's life sight was to build a new economics paradigm, centred on the idea of market process, expectations and kaleidic society (Shackle); in order to do so he developed a deep attack toward the new Cambridge macroeconomics mainstream, arising from World War II ashes during the 1950s and 1960s. His polemic toward the 'modern' macroeconomics can be read in all his books and papers, but it is particularly evident in Lachmann (1973, [1986a] 1994). His preferred targets were Sraffa and Joan Robinson, 'guilty', according to Lachmann, to overcome Keynes's subjectivism and to develop a new Neo-Ricardian approach. The resulting macroeconomics is accused to be excessively formalist, ignoring the microfoundations that are at the very root of human action and choice. But Lachmann's attack was not only an epistemological one. He intensively tried to demolish all the pillars of the Cambridge macroeconomics: capital as aggregate, long run equilibrium, the absence of innovation and technological change and the conception of rate of profit. His starting point was an economics based on human expectations as the only possible source of human actions. A source, however, never at rest, and continuously influenced by technological change and changing information.
Research Interests:
It is not possible for inflation or hyperinflation to be caused by anything other than the rate of growth of monetary demand being faster than the rate of growth of aggregate output. At this point we need a brief note on what is meant by... more
It is not possible for inflation or hyperinflation to be caused by anything other than the rate of growth of monetary demand being faster than the rate of growth of aggregate output. At this point we need a brief note on what is meant by monetary demand which is comprised of two components, that is the money stock (M) and the speed it flows through the economy (V). Therefore, M x V = aggregate monetary demand. This means that not only money printing but also accelerating velocity will determine the rate of inflation. This is seen particularly clearly under hyperinflation. As inflation accelerates the value of money falls ever faster and people do not want to hold on to money and therefore pass it on as quickly as possible. An interesting point is that this is reversed under deflation when the value of money is rising. After this clarification, we can conclude from the analysis conducted so far that the main culprits in generating inflation are the government and monetary authorities, which are responsible for the money supply through fiscal and monetary policies. Even if commonly represented as a cure for unemployment, inflation – as we hope we have demonstrated – can be at best a temporary relief, which instead produces even more unemployment at the peak of its expansion. Furthermore, inflation poses a serious threat to liberal democracies by awakening the desire for more government control. While Hayek proposed a system of competing currencies as a potential way to fight inflation tendencies, the return to balanced budgets – for a gradual spending cut – remains the best path for keeping national economies on the way toward a sound and prosperous future.
Research Interests:
Bait Al Amanah offers their inaugural Johor Sustainable Development Report 2020 for us to review what we have achieved, in ensuring that our growth is aligned with the United Nations Sustainable Development Goals. This report objectively... more
Bait Al Amanah offers their inaugural Johor Sustainable Development Report 2020 for us to review what we have achieved, in ensuring that our growth is aligned with the United Nations Sustainable Development Goals. This report objectively highlights the praise-worthy achievements of the state in a multi-disciplinary approach and also recommends policies which should be prioritized for greater growth. The findings of this report would be highly beneficial to policymakers in the state in accessing and implementing the necessary reforms. This testifies to the value of close cooperation and coordinated actions between the State Government, the private sector, research institutes and our communities within the state of Johor.
Research Interests:
Government regulations that have the intention to curb nicotine use often violate property rights and raise trade barriers. Instead of succeeding, they increase illicit trade in tobacco while the consumption rate stays steady or... more
Government regulations that have the intention to curb nicotine use often violate property rights and raise trade barriers. Instead of succeeding, they increase illicit trade in tobacco while the consumption rate stays steady or increases. Such failed policies include bans on flavors, bans on usage branding, prohibitions on advertisements, taxes, tariffs, and other regulations aimed at obscuring tobacco and restricting supply through price controls. A recent study conducted by PRA free-market think tank partners highlights the international best practices (IBP) concerning tobacco and nicotine regulations that help to achieve harm-reduction and cessation while promoting innovation and guarding against unintended consequences.
The Property Rights Alliance congratulates Adam Hoffer (Associate Professor of Economics at the University of Wisconsin, USA), Abel Benjamin Lim (Economist at Bait Al-Amanah, Malaysia) Fariq Sazuki (Fellow at Center for Market Education, Malaysia), Benedict Weerasena (Fellow Center for Market Education), and Carmelo Ferlito (CEO of Center for Market Education, Malaysia) on their paper “International Best Practices for Tobacco and Nicotine Public Policy.”
This work contributes case studies in East Asia and ASEAN with a focus on Indonesia, Malaysia, the Philippines, South Korea, and Japan to illustrate how developments in tobacco quit aids lead to greater smoking cessation rates.
The report focuses on case studies in East Asia and ASEAN with a focus on Indonesia, Malaysia, the Philippines, South Korea, and Japan to illustrate how developments in tobacco quit aids lead to greater smoking cessation rates.
The Property Rights Alliance congratulates Adam Hoffer (Associate Professor of Economics at the University of Wisconsin, USA), Abel Benjamin Lim (Economist at Bait Al-Amanah, Malaysia) Fariq Sazuki (Fellow at Center for Market Education, Malaysia), Benedict Weerasena (Fellow Center for Market Education), and Carmelo Ferlito (CEO of Center for Market Education, Malaysia) on their paper “International Best Practices for Tobacco and Nicotine Public Policy.”
This work contributes case studies in East Asia and ASEAN with a focus on Indonesia, Malaysia, the Philippines, South Korea, and Japan to illustrate how developments in tobacco quit aids lead to greater smoking cessation rates.
The report focuses on case studies in East Asia and ASEAN with a focus on Indonesia, Malaysia, the Philippines, South Korea, and Japan to illustrate how developments in tobacco quit aids lead to greater smoking cessation rates.
Research Interests:
In the present paper we critically analyzed the fiscal and monetary policies implemented to help Malaysia navigating through the COVID-19 pandemic, focusing on their unintended consequences and the pace they set for the future of the... more
In the present paper we critically analyzed the fiscal and monetary policies implemented to help Malaysia navigating through the COVID-19 pandemic, focusing on their unintended consequences and the pace they set for the future of the national economy.
The first part of the paper presents a summary of the different fiscal and monetary policies implemented during the COVID-19 era, focusing on the current trends for GDP, unemployment and inflation.
The second part, instead, places that measures under the lens of a theoretical economic analysis, to stress the unintended consequences they produced and the perilous path they created for the future of the Malaysian economy.
We know that the Malaysian GDP declined by 5.6% in 2020 amid the harsh economic restrictions imposed in the attempt to curb the spread of COVID-19. Stay-at-home orders increased unemployment up to 5.3% and forced the government to intervene with different stimulus packages, supported by expansive policies by Bank Negara Malaysia.
The main critically findings from the theoretical analysis can be summarized as it follows:
- The expansive monetary policy path followed by Bank Negara Malaysia, by creating abundant availability of financial means despite the recession, is creating a dichotomy between the financial world and the real economy, planting the seeds for an economic crisis (monetary cycle à-la Mises).
- Expansive fiscal policies implemented to address the damages created by stay-at-home orders may result in temporary effects, but will 1) shift the debt burden to future generations and 2) create more unemployment when the stimuli are over.
- Most of the same fiscal policies can generate a slower future growth path by decelerating the pace of private investments.
Therefore, the policies implemented so far may become the very root of an economic crisis once the COVID-19 emergency is over and the economy is on the path to recovery. Their effects on inflation and unemployment will become more evident when the deflationary pressures currently in play will be no longer in place.
We foresee unemployment to be between 5% and 5.5% at the end of 2021, depending on when lockdowns will be lifted and a serious discussion on domestic and international borders will be opened. The figure could stabilize between 4% and 4.5% if the current trend in business openings won't be stopped by further closures.
In accordance with Fitch's predictions, we foresee a flat growth for 2021, with the possibility of an annual rebound between 1% and 2% only in case of a rapid and radical change in policies.
The paper suggests that at this point it is very difficult to propose solutions to problems that were created by policies (lockdowns) judged harmful in light of a sound trade-off analysis. We can now attempt to moderate those negative consequences.
A commitment to a no-lockdown policy would help the system naturally free up resources to be invested consistently with the real structure of preferences, while the government should focus on targeted healthcare investments. Targeted fiscal interventions, directed to strengthen the healthcare system, are the only fiscal tool that in this moment may not produce bad unintended consequences in the future in terms of slower growth, inflation and additional unemployment. Similarly, monetary policy will need to change in order to allow deflationary tendencies to run their course.
Finally, a tax reform, which is based on simplification on one hand and on the introduction of a multi-layered GST (consumption tax) on the other, would favour rebuilding the savings which are necessary not only for the long-term financial stability of households, but also as the sound resources for private investments.
The first part of the paper presents a summary of the different fiscal and monetary policies implemented during the COVID-19 era, focusing on the current trends for GDP, unemployment and inflation.
The second part, instead, places that measures under the lens of a theoretical economic analysis, to stress the unintended consequences they produced and the perilous path they created for the future of the Malaysian economy.
We know that the Malaysian GDP declined by 5.6% in 2020 amid the harsh economic restrictions imposed in the attempt to curb the spread of COVID-19. Stay-at-home orders increased unemployment up to 5.3% and forced the government to intervene with different stimulus packages, supported by expansive policies by Bank Negara Malaysia.
The main critically findings from the theoretical analysis can be summarized as it follows:
- The expansive monetary policy path followed by Bank Negara Malaysia, by creating abundant availability of financial means despite the recession, is creating a dichotomy between the financial world and the real economy, planting the seeds for an economic crisis (monetary cycle à-la Mises).
- Expansive fiscal policies implemented to address the damages created by stay-at-home orders may result in temporary effects, but will 1) shift the debt burden to future generations and 2) create more unemployment when the stimuli are over.
- Most of the same fiscal policies can generate a slower future growth path by decelerating the pace of private investments.
Therefore, the policies implemented so far may become the very root of an economic crisis once the COVID-19 emergency is over and the economy is on the path to recovery. Their effects on inflation and unemployment will become more evident when the deflationary pressures currently in play will be no longer in place.
We foresee unemployment to be between 5% and 5.5% at the end of 2021, depending on when lockdowns will be lifted and a serious discussion on domestic and international borders will be opened. The figure could stabilize between 4% and 4.5% if the current trend in business openings won't be stopped by further closures.
In accordance with Fitch's predictions, we foresee a flat growth for 2021, with the possibility of an annual rebound between 1% and 2% only in case of a rapid and radical change in policies.
The paper suggests that at this point it is very difficult to propose solutions to problems that were created by policies (lockdowns) judged harmful in light of a sound trade-off analysis. We can now attempt to moderate those negative consequences.
A commitment to a no-lockdown policy would help the system naturally free up resources to be invested consistently with the real structure of preferences, while the government should focus on targeted healthcare investments. Targeted fiscal interventions, directed to strengthen the healthcare system, are the only fiscal tool that in this moment may not produce bad unintended consequences in the future in terms of slower growth, inflation and additional unemployment. Similarly, monetary policy will need to change in order to allow deflationary tendencies to run their course.
Finally, a tax reform, which is based on simplification on one hand and on the introduction of a multi-layered GST (consumption tax) on the other, would favour rebuilding the savings which are necessary not only for the long-term financial stability of households, but also as the sound resources for private investments.
Research Interests:
The present paper is an attempt to analyse the dynamic of COVID-19 in Malaysia and to provide a comprehensive, implementable policy plan to reverse the emergency, while allowing the economy to get back on a growth path. Such a plan is... more
The present paper is an attempt to analyse the dynamic of COVID-19 in Malaysia and to provide a comprehensive, implementable policy plan to reverse the emergency, while allowing the economy to get back on a growth path. Such a plan is based on the superior outcomes produced by decentralized decision processes, and is thus centred on mass, frequent and affordable testing and on targeted protection, in the light of a balanced trade-off analysis.
MAIN FINDINGS.
1. Medical perspective.
a. General.
- SARS-CoV2 is an RNA virus, i.e. a virus with a positive strand of RNA, which causes COVID-19.
- Recent pathogenetic research showed that it may not have exactly an airway-inflammatory etiology, as does the flu, but rather an endothelial dysfunction with pro-thrombogenic events and multi-organ damage.
- SARS-CoV2 seems to be confirmed as a cardiovascular disease.
- COVID-19 has a syndemic character, such that the presence of other non-communicable diseases increase the chance of developing serious symptoms.
b. Malaysia.
- As of 17 June, Malaysia had recorded 673,026 COVID-19 infections and 4,142 deaths linked to COVID-19 (2% of the population has tested positive and 0.61% of the positive cases – or 0.012% of the population – have lost their lives from complications due to the virus).
- Survival rate is 99.39% (98% worldwide).
- The average age of death was 65.8 and the median age of death was 67.
- 71.18% of deaths were recorded among individuals aged 60 and above.
- Almost 86% of the COVID-19 deaths happened in the presence of at least one comorbidity.
- The most common recorded illnesses were high blood pressure and diabetes.
2. Economic perspective.
- The policy response has been based on the assumption of super-knowledge possessed by the State.
- This has produced poor policy results, mainly based on blind faith in lockdowns.
- The main focus has been to minimize infections, when scientific literature supports the idea that we should increase infections, but in a targeted way, in order to accelerate the transformation of the pandemic into an endemic phenomenon. A constantly low R0 will prolong the pandemic up to 20 years.
- A balanced trade-off analysis has been missing.
- Affecting mostly the poor, generalized movement restrictions have considerably increased unemployment, underemployment and poverty: currently the number of those struggling to make ends meet is more than 700 times higher than the number of people who succumbed to COVID-19.
- The estimated cost of treating people infected with the virus so far is RM 8 billion, against an annual lockdown cost of RM 170 billion (12-13% of GDP).
- A more balanced trade-off analysis would have suggested investing (and saving) resources into treatments, equipment and temporary hospitals: the cost would have been a fraction of those generated by lockdowns (which furthermore generated no actual medical benefit).
- Expansionary fiscal and monetary policies, made necessary by movement restrictions, and supply-side shocks are triggering inflationary processes which may become out of control after the COVID-19 emergency is over, laying the foundation for a deeper economic crisis.
- This course needs to be reversed now, together with restoring the rule of law to increase confidence domestically and internationally.
POLICY PROPOSALS.
- Lockdowns do not work and can make the situation even worse by prolonging the pandemic duration and compromising the physical and mental health of a much higher number of individuals. Lockdowns should be immediately abandoned, together with other questionable measures, such as the distinction between essential and non-essential services.
- Because of variants, limited time efficacy and supply-side constraints, vaccination cannot be the sole practical response.
- The first change should be to move from generalized restrictions to focused protection by protecting vulnerable categories (the elderly and sick) and allowing targeted infections for faster immunity development.
- Pharmaceutical and medical research should be enhanced for long-term treatment. At the same time, healthy behaviours to strengthen the immune system (physical activity, supplement consumption, meditation…) should be incentivized.
- The gold standard for returning to normal personal and economic lives while allowing the virus to circulate in the community and develop herd immunity is mass, frequent and affordable testing. This means allowing firms and schools to test individuals on a weekly basis, making possible early detection and avoidance of asymptomatic spread. For this to happen, rapid test kits need to be liberalized. While the cost of tests can be borne by businesses, the amounts should be made tax deductible.
- Increasing testing and tracing will require investments in additional hospitals and medical equipment, as well as entrepreneurial innovation based on the cooperation between private and public healthcare.
- Competing groups of experts should be allowed to dialogue with institutions and to give the public open advice, on the basis of which individuals can make informed decisions.
HOW TO FINANCE THE PLAN.
- A Special Purpose Tax of 5% on profits above a certain threshold. This should be clearly temporary and based on the promise of no further lockdowns. Furthermore, the collected revenue should be linked to anti-COVID investments in the medical field.
- Reintroduction of a targeted and multi-layer GST, to be collected at the state rather than the federal level; the excess collection over the previous SST should be invested to medically fight COVID-19.
- Percentage Tax Designation Institutions: businesses and individuals should be given the occasion to allocate a percentage of their taxes (max 2%) to investments to fight COVID-19.
MAIN FINDINGS.
1. Medical perspective.
a. General.
- SARS-CoV2 is an RNA virus, i.e. a virus with a positive strand of RNA, which causes COVID-19.
- Recent pathogenetic research showed that it may not have exactly an airway-inflammatory etiology, as does the flu, but rather an endothelial dysfunction with pro-thrombogenic events and multi-organ damage.
- SARS-CoV2 seems to be confirmed as a cardiovascular disease.
- COVID-19 has a syndemic character, such that the presence of other non-communicable diseases increase the chance of developing serious symptoms.
b. Malaysia.
- As of 17 June, Malaysia had recorded 673,026 COVID-19 infections and 4,142 deaths linked to COVID-19 (2% of the population has tested positive and 0.61% of the positive cases – or 0.012% of the population – have lost their lives from complications due to the virus).
- Survival rate is 99.39% (98% worldwide).
- The average age of death was 65.8 and the median age of death was 67.
- 71.18% of deaths were recorded among individuals aged 60 and above.
- Almost 86% of the COVID-19 deaths happened in the presence of at least one comorbidity.
- The most common recorded illnesses were high blood pressure and diabetes.
2. Economic perspective.
- The policy response has been based on the assumption of super-knowledge possessed by the State.
- This has produced poor policy results, mainly based on blind faith in lockdowns.
- The main focus has been to minimize infections, when scientific literature supports the idea that we should increase infections, but in a targeted way, in order to accelerate the transformation of the pandemic into an endemic phenomenon. A constantly low R0 will prolong the pandemic up to 20 years.
- A balanced trade-off analysis has been missing.
- Affecting mostly the poor, generalized movement restrictions have considerably increased unemployment, underemployment and poverty: currently the number of those struggling to make ends meet is more than 700 times higher than the number of people who succumbed to COVID-19.
- The estimated cost of treating people infected with the virus so far is RM 8 billion, against an annual lockdown cost of RM 170 billion (12-13% of GDP).
- A more balanced trade-off analysis would have suggested investing (and saving) resources into treatments, equipment and temporary hospitals: the cost would have been a fraction of those generated by lockdowns (which furthermore generated no actual medical benefit).
- Expansionary fiscal and monetary policies, made necessary by movement restrictions, and supply-side shocks are triggering inflationary processes which may become out of control after the COVID-19 emergency is over, laying the foundation for a deeper economic crisis.
- This course needs to be reversed now, together with restoring the rule of law to increase confidence domestically and internationally.
POLICY PROPOSALS.
- Lockdowns do not work and can make the situation even worse by prolonging the pandemic duration and compromising the physical and mental health of a much higher number of individuals. Lockdowns should be immediately abandoned, together with other questionable measures, such as the distinction between essential and non-essential services.
- Because of variants, limited time efficacy and supply-side constraints, vaccination cannot be the sole practical response.
- The first change should be to move from generalized restrictions to focused protection by protecting vulnerable categories (the elderly and sick) and allowing targeted infections for faster immunity development.
- Pharmaceutical and medical research should be enhanced for long-term treatment. At the same time, healthy behaviours to strengthen the immune system (physical activity, supplement consumption, meditation…) should be incentivized.
- The gold standard for returning to normal personal and economic lives while allowing the virus to circulate in the community and develop herd immunity is mass, frequent and affordable testing. This means allowing firms and schools to test individuals on a weekly basis, making possible early detection and avoidance of asymptomatic spread. For this to happen, rapid test kits need to be liberalized. While the cost of tests can be borne by businesses, the amounts should be made tax deductible.
- Increasing testing and tracing will require investments in additional hospitals and medical equipment, as well as entrepreneurial innovation based on the cooperation between private and public healthcare.
- Competing groups of experts should be allowed to dialogue with institutions and to give the public open advice, on the basis of which individuals can make informed decisions.
HOW TO FINANCE THE PLAN.
- A Special Purpose Tax of 5% on profits above a certain threshold. This should be clearly temporary and based on the promise of no further lockdowns. Furthermore, the collected revenue should be linked to anti-COVID investments in the medical field.
- Reintroduction of a targeted and multi-layer GST, to be collected at the state rather than the federal level; the excess collection over the previous SST should be invested to medically fight COVID-19.
- Percentage Tax Designation Institutions: businesses and individuals should be given the occasion to allocate a percentage of their taxes (max 2%) to investments to fight COVID-19.
Research Interests:
Executive Summary The demand for dietary supplements in Malaysia is on an upward trajectory similar to global trends, due to increasing awareness regarding personal health and well-being, in addition to evolving eating habits amid... more
Executive Summary
The demand for dietary supplements in Malaysia is on an upward trajectory similar to global trends, due to increasing awareness regarding personal health and well-being, in addition to evolving eating habits amid time-pressed and hectic urban lifestyles. This is because dietary supplements have been proven to boost immunity, reduce the risk of infections, overcome malnutrition and contribute to significant healthcare savings as a whole. However, the discriminatory regulatory and fiscal framework at present has reduced access to dietary supplements in Malaysia, especially among vulnerable communities. Thus, this paper presents several policy recommendations towards greater accessibility to dietary supplements.
Main Findings
• From extensive global research, dietary supplements have been shown to enhance nutrition, prevent deficiency, reduce the risks of costly disease-related events among high-risk populations, while boosting productivity and improving overall well-being.
• Preventive daily intake of 1g of omega-3 EPA+DHA and 1.7g of phytosterols reduces the relative risk of cardiovascular events by 4.9% and 2.3% respectively, while a daily intake of 1000mg calcium and 15 μg of Vitamin D reduce the incidence of fractures by 15%.
• For every one ringgit spent on omega-3 and B vitamin supplements as preventive daily intake levels, a significant RM4.50 and RM1.72 can be saved respectively in avoided coronary heart disease (CHD) costs. The total estimated potential net savings in avoided hospital utilization cost, productivity loss and burden of disease cost is RM42.44 million and RM16.74 million respectively, on average per year in Malaysia.
• For the prevention of Type 2 Diabetes Mellitus (DM), RM 1.31 can be saved per RM 1 spent on chromium picolinate, amounting to a total potential net cost savings of RM248.27 million per year. Thus, individual expenses for dietary supplements act as an alternative form of insurance which diminishes the risk of substantial expenses for future medical treatments.
• For protection against Covid-19 and other infectious disease, a nutrition model rich in suitable dietary supplements including omega-3 fatty acids, vitamins C and D, and phytonutrients is highly recommended. This aligns with the rise in demand of system-boosting products in Malaysia during the Covid-19 pandemic.
• The market size of the Malaysian dietary supplements industry recorded an estimated CAGR of 3.0% between 2018 and 2020, reaching RM2.1-2.2 billion (USD 519-544 billion) in 2020. The growing trend testifies to the importance of freedom of choice and empowerment of consumers in healthcare solutions.
• Despite the positive growth in demand, Malaysia still lags behind its Asian counterparts, as less than 30% of the population consumes dietary supplements compared to countries like South Korea (60-70%), Taiwan (40-50%) and Australia (40-50%).
• The low consumption of dietary supplements impedes progress in overcoming the triple burden of malnutrition, obesity in adults, and anaemia among women of reproductive age, in which Malaysia is the only Southeast Asian nation with this triple burden.
• The current system of taxes and duties involving dietary supplements have indirectly made products more expensive and limited consumer choices, especially among vulnerable households where affordability is a key barrier. Almost all traditional and non-traditional dietary supplements are charged 5% sales tax.
Policy Recommendations
• The Malaysian government should revise the current import duty policy on the ingredients of dietary supplements, implementing simple and immediate bilateral agreements for truly free trade. Although concerns may arise on the need for protection of domestic industries; yet this would adversely impact consumers and also impede local producers from boosting product quality.
• With regards to SST as duty and SST as tax on manufactured products, we propose that ingredients and final products related with dietary supplements should become SST exempt. This is grounded in the importance of freedom of choice with regard to healthcare decisions and individual courses of treatment.
• We recommend an introduction of lifestyle tax relief for individuals for the purchase of nutrients and dietary supplements, with a limit of RM 1,500 per year; considering how tax reliefs nudge in favour of healthy behaviours.
• Instead of advocating for overarching subsidies which creates a negative dependence mentality, a limited and targeted subsidy strategy towards vulnerable groups can be considered, coupled with end-of-subsidy monitoring plan.
• We believe that local government action in education, together with cooperation from supplement producers and related NGOs will be an effective long-term strategy to increase dietary supplementation.
The demand for dietary supplements in Malaysia is on an upward trajectory similar to global trends, due to increasing awareness regarding personal health and well-being, in addition to evolving eating habits amid time-pressed and hectic urban lifestyles. This is because dietary supplements have been proven to boost immunity, reduce the risk of infections, overcome malnutrition and contribute to significant healthcare savings as a whole. However, the discriminatory regulatory and fiscal framework at present has reduced access to dietary supplements in Malaysia, especially among vulnerable communities. Thus, this paper presents several policy recommendations towards greater accessibility to dietary supplements.
Main Findings
• From extensive global research, dietary supplements have been shown to enhance nutrition, prevent deficiency, reduce the risks of costly disease-related events among high-risk populations, while boosting productivity and improving overall well-being.
• Preventive daily intake of 1g of omega-3 EPA+DHA and 1.7g of phytosterols reduces the relative risk of cardiovascular events by 4.9% and 2.3% respectively, while a daily intake of 1000mg calcium and 15 μg of Vitamin D reduce the incidence of fractures by 15%.
• For every one ringgit spent on omega-3 and B vitamin supplements as preventive daily intake levels, a significant RM4.50 and RM1.72 can be saved respectively in avoided coronary heart disease (CHD) costs. The total estimated potential net savings in avoided hospital utilization cost, productivity loss and burden of disease cost is RM42.44 million and RM16.74 million respectively, on average per year in Malaysia.
• For the prevention of Type 2 Diabetes Mellitus (DM), RM 1.31 can be saved per RM 1 spent on chromium picolinate, amounting to a total potential net cost savings of RM248.27 million per year. Thus, individual expenses for dietary supplements act as an alternative form of insurance which diminishes the risk of substantial expenses for future medical treatments.
• For protection against Covid-19 and other infectious disease, a nutrition model rich in suitable dietary supplements including omega-3 fatty acids, vitamins C and D, and phytonutrients is highly recommended. This aligns with the rise in demand of system-boosting products in Malaysia during the Covid-19 pandemic.
• The market size of the Malaysian dietary supplements industry recorded an estimated CAGR of 3.0% between 2018 and 2020, reaching RM2.1-2.2 billion (USD 519-544 billion) in 2020. The growing trend testifies to the importance of freedom of choice and empowerment of consumers in healthcare solutions.
• Despite the positive growth in demand, Malaysia still lags behind its Asian counterparts, as less than 30% of the population consumes dietary supplements compared to countries like South Korea (60-70%), Taiwan (40-50%) and Australia (40-50%).
• The low consumption of dietary supplements impedes progress in overcoming the triple burden of malnutrition, obesity in adults, and anaemia among women of reproductive age, in which Malaysia is the only Southeast Asian nation with this triple burden.
• The current system of taxes and duties involving dietary supplements have indirectly made products more expensive and limited consumer choices, especially among vulnerable households where affordability is a key barrier. Almost all traditional and non-traditional dietary supplements are charged 5% sales tax.
Policy Recommendations
• The Malaysian government should revise the current import duty policy on the ingredients of dietary supplements, implementing simple and immediate bilateral agreements for truly free trade. Although concerns may arise on the need for protection of domestic industries; yet this would adversely impact consumers and also impede local producers from boosting product quality.
• With regards to SST as duty and SST as tax on manufactured products, we propose that ingredients and final products related with dietary supplements should become SST exempt. This is grounded in the importance of freedom of choice with regard to healthcare decisions and individual courses of treatment.
• We recommend an introduction of lifestyle tax relief for individuals for the purchase of nutrients and dietary supplements, with a limit of RM 1,500 per year; considering how tax reliefs nudge in favour of healthy behaviours.
• Instead of advocating for overarching subsidies which creates a negative dependence mentality, a limited and targeted subsidy strategy towards vulnerable groups can be considered, coupled with end-of-subsidy monitoring plan.
• We believe that local government action in education, together with cooperation from supplement producers and related NGOs will be an effective long-term strategy to increase dietary supplementation.
Research Interests:
The Pandemic known as Covid-19 has come to affect the Malaysian education system, which was already suffering from several problems, mainly as a result of centralization. The policies implemented by the Malaysian Government to attempt... more
The Pandemic known as Covid-19 has come to affect the Malaysian education system, which was already suffering from several problems, mainly as a result of centralization. The policies implemented by the Malaysian Government to attempt to curb the spread of the virus – namely, the closures of educational institutions, and in particular schools, associated with several lockdowns – have heavily weighed on the Malaysian society and life. The present paper addresses the most critical effects of school closures on the Malaysian socio-economic system, proposing a list of policy prescriptions for a safe return to face-to-face education.
Research Interests:
The Malaysian property boom and bust cycle: history repeating itself?, in A. Hermann and M.A. Madi (eds.), The 2008 Crisis Ten Years On. In Retrospect, Context and Prospect, Bristol (UK), World Economics Association, 2020, pp. 224-253.
Research Interests:
Ibukota Baru Indonesia dan Dampaknya Terhadap Industri Real Estate di Jakarta, (with C. Rambey and A.S.A. Waskito), Jakarta (ID), Provalindo Nusa, Indonesia, 2020.
Research Interests:
Chandra Rambey, Carmelo Ferlito and Alfi Syharin Ario Waskito, Indonesia’s new capital city and its impact on the real estate industry in Greater Jakarta, Jakarta (ID), Provalindo Nusa, 2020.
Research Interests:
CME EduPaper Nr 2. Who – or what – is an entrepreneur? Behind which mask – or masks – does he hide his true face? Although we can easily understand how entrepreneurs represent the vital element in economic life, it is pretty difficult... more
CME EduPaper Nr 2.
Who – or what – is an entrepreneur? Behind which mask – or masks – does he hide his true face? Although we can easily understand how entrepreneurs represent the vital element in economic life, it is pretty difficult to find an adequate treatment of entrepreneurship in contemporary economics textbooks. In modern microeconomics, we find a sophisticated theory of the firm, in which an enterprise is often presented as profit maximizer or cost minimizer; similarly, different forms of market organization are discussed depending on the number of firms acting there. However, these discussions fail to appreciate the fact that at the very heart of the firms, we find the entrepreneurs, or – at the very least – entrepreneurship. It is almost as if the contemporary theory would introduce us to many entrepreneurial masks without attempting to discover the actual entrepreneur’s face.
The fact that entrepreneurs are not to be found in economics textbooks does not mean that economists never tried to grasp the nature of such a key element of economic life. In dealing with the concepts of entrepreneur and entrepreneurship, particularly attractive approaches are the ones developed by Joseph Schumpeter (1883-1950) and Israel M. Kirzner (1930-). Their visions seem to hold antagonist; Schumpeter developed a very well-known theory of entrepreneurs and entrepreneurship centered on the concept of “new combinations”, which were introduced by special types of humans, entrepreneurs, who were conceived as leaders in the process of change. Kirzner, instead, devoted his research activity to developing an alternative concept of entrepreneurship rooted in Misesian human action and in the concept of “alertness” to previously unnoticed profit opportunities. Therefore, while for Schumpeter the concept of entrepreneurship centres around a temporary feature of special human beings, for Kirzner, a certain element of entrepreneurship is potentially present in every individual dealing with the attempt of achieving subjective goals. We could say that for Schumpeter there is one entrepreneur, while for Kirzner there are one hundred thousand of them – to keep on playing with Pirandello’s piece.
The aim of the present paper is to develop an approach which considers the validity of both theories, by merging them into a new synthesis rooted in the concept of human action as developed by Ludwig von Mises.
Who – or what – is an entrepreneur? Behind which mask – or masks – does he hide his true face? Although we can easily understand how entrepreneurs represent the vital element in economic life, it is pretty difficult to find an adequate treatment of entrepreneurship in contemporary economics textbooks. In modern microeconomics, we find a sophisticated theory of the firm, in which an enterprise is often presented as profit maximizer or cost minimizer; similarly, different forms of market organization are discussed depending on the number of firms acting there. However, these discussions fail to appreciate the fact that at the very heart of the firms, we find the entrepreneurs, or – at the very least – entrepreneurship. It is almost as if the contemporary theory would introduce us to many entrepreneurial masks without attempting to discover the actual entrepreneur’s face.
The fact that entrepreneurs are not to be found in economics textbooks does not mean that economists never tried to grasp the nature of such a key element of economic life. In dealing with the concepts of entrepreneur and entrepreneurship, particularly attractive approaches are the ones developed by Joseph Schumpeter (1883-1950) and Israel M. Kirzner (1930-). Their visions seem to hold antagonist; Schumpeter developed a very well-known theory of entrepreneurs and entrepreneurship centered on the concept of “new combinations”, which were introduced by special types of humans, entrepreneurs, who were conceived as leaders in the process of change. Kirzner, instead, devoted his research activity to developing an alternative concept of entrepreneurship rooted in Misesian human action and in the concept of “alertness” to previously unnoticed profit opportunities. Therefore, while for Schumpeter the concept of entrepreneurship centres around a temporary feature of special human beings, for Kirzner, a certain element of entrepreneurship is potentially present in every individual dealing with the attempt of achieving subjective goals. We could say that for Schumpeter there is one entrepreneur, while for Kirzner there are one hundred thousand of them – to keep on playing with Pirandello’s piece.
The aim of the present paper is to develop an approach which considers the validity of both theories, by merging them into a new synthesis rooted in the concept of human action as developed by Ludwig von Mises.
Research Interests:
Brief IDEAS No 20: "COVID-19 and the MCO: An Exit Strategy for Malaysia", by Dr Carmelo Ferlito (IDEAS Senior Fellow) and Dr Gaetano Perone (Università degli Studi di Bergamo). Free download here:... more
Brief IDEAS No 20: "COVID-19 and the MCO: An Exit Strategy for Malaysia", by Dr Carmelo Ferlito (IDEAS Senior Fellow) and Dr Gaetano Perone (Università degli Studi di Bergamo).
Free download here: http://www.ideas.org.my/brief-ideas-no-20-covid-19-and-the-mco-an-exit-strategy-for-malaysia/.
IDEAS welcomes progress in combatting COVID-19 and encourages the government to develop an exit strategy for the eventual end to the Movement Control Order (MCO). In our latest paper written by IDEAS Senior Fellow, Carmelo Ferlito and and Gaetano Perone, Research Fellow at the Department of Management, Economics and Quantitative Methods of the University of Bergamo in Bergamo, Italy, we’ve proposed several steps.
In the short run, we must bring the economy back on-line as quickly as possible, prioritising networked industries. Specific recommendations include:
To include logistics as among the essential services
Provide rapid feedback from MITI for the industry-related firms.
In the medium-run develop protocols for lower restrictions under strict sanitary conditions. Specific recommendations include a gradual relaxation of MCO under strict sanitary conditions (including mass testing), as recently proposed by Dato’ Seri Azmin Ali.
In the medium and long-run the government should accelerate adaptation by firms, to cope with prolonged disruptions. Specific recommendations include fiscal incentives to automation, to reduce dependence on a large labour force.
Media statement here: http://www.ideas.org.my/ideas-welcomes-progress-in-combatting-covid-19-and-proposes-an-exit-strategy-on-mco/.
Free download here: http://www.ideas.org.my/brief-ideas-no-20-covid-19-and-the-mco-an-exit-strategy-for-malaysia/.
IDEAS welcomes progress in combatting COVID-19 and encourages the government to develop an exit strategy for the eventual end to the Movement Control Order (MCO). In our latest paper written by IDEAS Senior Fellow, Carmelo Ferlito and and Gaetano Perone, Research Fellow at the Department of Management, Economics and Quantitative Methods of the University of Bergamo in Bergamo, Italy, we’ve proposed several steps.
In the short run, we must bring the economy back on-line as quickly as possible, prioritising networked industries. Specific recommendations include:
To include logistics as among the essential services
Provide rapid feedback from MITI for the industry-related firms.
In the medium-run develop protocols for lower restrictions under strict sanitary conditions. Specific recommendations include a gradual relaxation of MCO under strict sanitary conditions (including mass testing), as recently proposed by Dato’ Seri Azmin Ali.
In the medium and long-run the government should accelerate adaptation by firms, to cope with prolonged disruptions. Specific recommendations include fiscal incentives to automation, to reduce dependence on a large labour force.
Media statement here: http://www.ideas.org.my/ideas-welcomes-progress-in-combatting-covid-19-and-proposes-an-exit-strategy-on-mco/.
Research Interests:
What is Economics? I have the impression that the economists’ community is no more wondering about the scope and the meaning of the discipline. This could be because of the belief that a general agreement on the matter is reached (and... more
What is Economics? I have the impression that the economists’ community is no more wondering about the scope and the meaning of the discipline. This could be because of the belief that a general agreement on the matter is reached (and thus the question does not need to be posed anymore) or because the ‘experts’ lost interest in this kind of ontological questions. Most probably, it is a combination of both factors. Looking at the crisis that economics is experiencing, and at the light of the interesting debate about its future directions, I think it is interesting to reflect again on what I believe economics is.
An increased self-awareness can help in better developing expectations about what economists can do and what they cannot do.
In this paper I will define economics following a different general approach to economic problems, an approach that, because of its emphasis on meaning, has been called ‘radical subjectivism’ (Storr, 2017).
At the light of this approach, it is possible to develop a general theory for the economic system, with the possibility of globally responding to economic questions within a broad paradigm. Moreover, such a paradigm has to incorporate two fundamental elements disregarded by mainstream economics: real people and real time.
An increased self-awareness can help in better developing expectations about what economists can do and what they cannot do.
In this paper I will define economics following a different general approach to economic problems, an approach that, because of its emphasis on meaning, has been called ‘radical subjectivism’ (Storr, 2017).
At the light of this approach, it is possible to develop a general theory for the economic system, with the possibility of globally responding to economic questions within a broad paradigm. Moreover, such a paradigm has to incorporate two fundamental elements disregarded by mainstream economics: real people and real time.
Research Interests:
With the present brief we wanted, in the first place, to argue that business cycles are, to a certain extent, unavoidable, though they can be moderated; as a consequence of profit expectations and because of the role played by financial... more
With the present brief we wanted, in the first place, to argue that business cycles are, to a certain extent, unavoidable, though they can be moderated; as a consequence of profit expectations and because of the role played by financial markets, capitalist economies develop by facing oscillations.
In dealing with such waves, an institutional approach should be preferred. Among the institutional reforms to be implemented with counter-cyclical purposes, we suggest a tax reform for Malaysia resting on three pillars:
• a reformed and reduced income tax, aiming to support the economy and to balance the increase in indirect taxation proposed with GST and CGT;
• a progressive GST replacing the existing and controversial SST;
• a progressive capital gain tax, inspired by the model proposed by Hanusch and Wackermann (2011).
We believe that the scheme presented here would present the following advantages:
• it is not distortionary, and it should not generate negative incentives discouraging economic activity;
• it nudges in favour of a saving-oriented mentality, intended as the necessary drive for sustainably financed investments;
• it would help keep the investment pace away both from overheating and depressing.
Such a reform has a chance to achieve its targets only if is accompanied by fiscal discipline and by rationing public expenditures, paired with a growing effort toward accountability.
In dealing with such waves, an institutional approach should be preferred. Among the institutional reforms to be implemented with counter-cyclical purposes, we suggest a tax reform for Malaysia resting on three pillars:
• a reformed and reduced income tax, aiming to support the economy and to balance the increase in indirect taxation proposed with GST and CGT;
• a progressive GST replacing the existing and controversial SST;
• a progressive capital gain tax, inspired by the model proposed by Hanusch and Wackermann (2011).
We believe that the scheme presented here would present the following advantages:
• it is not distortionary, and it should not generate negative incentives discouraging economic activity;
• it nudges in favour of a saving-oriented mentality, intended as the necessary drive for sustainably financed investments;
• it would help keep the investment pace away both from overheating and depressing.
Such a reform has a chance to achieve its targets only if is accompanied by fiscal discipline and by rationing public expenditures, paired with a growing effort toward accountability.
Research Interests:
In this paper I argue that the unique contribution of the Austrian School of Economics (ASE) is found in its general approach to economic problems, an approach that, because of its emphasis on meaning, has been called 'radical... more
In this paper I argue that the unique contribution of the Austrian School of Economics (ASE) is found in its general approach to economic problems, an approach that, because of its emphasis on meaning, has been called 'radical subjectivism'. In the light of such an approach, we can look at and appreciate that the ASE is probably one of the latest schools which had, and still have, the aspiration of bringing out a general theory of the economic system, with the possibility of globally responding to economic questions within a broad paradigm. Moreover, such a paradigm was developed in order to incorporate two fundamental elements disregarded by mainstream economics: real people and real time. The aim of the present paper is thus to show how teaching Austrian economics can be a source of inspiration for students and scholars because of its unique approach to economic problems; its consequent aspiration to develop a general explanation of the economic process; and the importance of linking economic analysis to the real world.
Research Interests:
The present paper is a follow-up analysis in light of my previously released study on the Malaysian property market (Ferlito, 2018a). The debate has evolved, and it is mainly focused on the issue of housing affordability, judged primarily... more
The present paper is a follow-up analysis in light of my previously released study on the Malaysian property market (Ferlito, 2018a). The debate has evolved, and it is mainly focused on the issue of housing affordability, judged primarily by the use of the price/income ratio, which is a very limited instrument. In this paper I reaffirm the necessity of tackling the affordability issue in the realm of the general property market situation, which in the current scenario is facing a downturn readjustment process.
The first section of the present work summarizes my previous findings and extends them, taking into account last year’s evolution. In section 2 I critically discuss the approach to affordability and analyse the recently released national housing policy. In section 3 policy recommendations are presented, both with reference to the downturn phase of the property market and to the issue of affordability, with special attention to the possibility offered by the rental market. Section 4 concludes the paper.
The first section of the present work summarizes my previous findings and extends them, taking into account last year’s evolution. In section 2 I critically discuss the approach to affordability and analyse the recently released national housing policy. In section 3 policy recommendations are presented, both with reference to the downturn phase of the property market and to the issue of affordability, with special attention to the possibility offered by the rental market. Section 4 concludes the paper.
Research Interests:
Industri unggas di Indonesia adalah sektor utama bagi perekonomian nasional, yang memasok 65% protein hewani dan mempekerjakan 10% tenaga kerja nasional. Meskipun produksi lokal berhasil memenuhi permintaan domestik, potensi... more
Industri unggas di Indonesia adalah sektor utama bagi perekonomian nasional, yang memasok
65% protein hewani dan mempekerjakan 10% tenaga kerja nasional. Meskipun produksi
lokal berhasil memenuhi permintaan domestik, potensi pertumbuhannya tetap tinggi di
seluruh Indonesia dan secara konsisten sesuai dengan ekspektasi kenaikan PDB per kapita.
Hal ini menyebabkan pasar menjadi sehat serta menarik dan membuat perusahaan asing
baru masuk secara berkala. Dalam sepuluh tahun terakhir, proses produksi telah berevolusi
dan dimodernisasi. Pasar didominasi oleh lima pemain utama—tiga perusahaan asing yang
beroperasi memproduksi pakan ternak dan dua perusahaan memproduksi anak ayam umur
sehari (DOC).
Meskipun ekspektasi terhadap industri ini sangat positif, harga ayam broiler dan telur di
Indonesia secara konsisten lebih tinggi daripada di Eropa dan Amerika. Dari bulan Maret–
Oktober 2018, harga daging ayam broiler di Indonesia rata-rata sekitar Rp40.500/kg, sedangkan
di Uni Eropa harganya sekitar Rp32.600/kg (+24%). Dalam periode yang sama, harga rata-rata
telur di Indonesia adalah sekitar Rp28.000/kg, sedangkan harga telur di Uni Eropa adalah
sebesar Rp21.000/kg (+33%). Perbedaan harga ini sebagian disebabkan oleh perbedaan
permintaan dan penawaran—Indonesia adalah negara Muslim, jadi permintaan daging ayam
lebih besar daripada di negara-negara dengan konsumsi daging babi yang lebih tinggi. Namun,
yang mengejutkan adalah harga di Indonesia lebih tinggi meskipun biaya produksi lebih rendah.
Upah petani di Indonesia lebih rendah daripada di Eropa. Selain itu, pada tahun 2012 Uni Eropa
melarang ayam petelur yang dikandangkan. Hal ini memaksa para peternak ayam petelur untuk
mengurangi kepadatan unggas dan menerapkan metode produksi yang lebih mahal, sehingga
mendorong biaya produksi telur naik. Biaya produksi di Uni Eropa lebih tinggi, tetapi harga
konsumen lebih rendah.
Perbedaan harga ini sebagian juga disebabkan oleh kondisi pasar umum di UE dan Indonesia.
Sementara pasar Eropa adalah pasar yang matang, pertumbuhan berkelanjutan di Indonesia
yang didukung oleh peningkatan permintaan, menjadi elemen penting yang menyebabkan
harga tetap tinggi.
Sementara banyak faktor ekonomi berada di luar kendali Indonesia, harga juga dipengaruhi
oleh kebijakan publik Indonesia. Oleh karena itu, kami mengusulkan modifikasi kebijakan yang
bertujuan untuk mendukung pertumbuhan industri yang sehat, yang dapat disertai juga dengan
harga yang lebih rendah. Tindakan penting pertama adalah menyelaraskan peraturan yang ada,
khususnya Peraturan Menteri Perdagangan (Permendag) Nomor 21 Tahun 2018 dan Peraturan
Menteri Pertanian (Permentan) Nomor 57 Tahun 2015 tentang surat rekomendasi menteri untuk
impor jagung dan hak impor jagung.
Saran kedua kami, terkait dengan Permentan Nomor 26 Tahun 2016, adalah untuk membebaskan
impor stok induk,1 yang memungkinkan produsen unggas untuk lebih bebas menerapkan strategi
kewirausahaan yang sehat daripada mengandalkan estimasi pemerintah yang salah. Pada saat
yang sama, kami percaya bahwa Indonesia perlu untuk terjun ke pasar jagung internasional, alih-alih menjalankan kebijakan perdagangan proteksionis untuk menggenjot produksi lokal.
Peraturan saat ini telah mendorong harga jagung domestik menjadi sangat tinggi dibandingkan
dengan harga internasional. Karena jagung adalah komponen utama pakan unggas, dan pakan
unggas merupakan biaya terbesar dalam produksi unggas di Indonesia, akses bebas ke pasar
internasional akan secara positif sangat memengaruhi biaya produksi di industri unggas
sehingga dapat membantu harga menjadi lebih rendah.
Terakhir, pemerintah dapat memainkan peran penting dalam memperbaiki infrastruktur, yang
pada saat ini membebani industri—terutama dalam hal pengiriman bahan mentah untuk pakan
ternak dari pelabuhan ke pabrik. Perbaikan infrastruktur jalan juga akan memungkinkan
pengangkutan alat berat, yang selanjutnya mendorong modernisasi industri unggas.
65% protein hewani dan mempekerjakan 10% tenaga kerja nasional. Meskipun produksi
lokal berhasil memenuhi permintaan domestik, potensi pertumbuhannya tetap tinggi di
seluruh Indonesia dan secara konsisten sesuai dengan ekspektasi kenaikan PDB per kapita.
Hal ini menyebabkan pasar menjadi sehat serta menarik dan membuat perusahaan asing
baru masuk secara berkala. Dalam sepuluh tahun terakhir, proses produksi telah berevolusi
dan dimodernisasi. Pasar didominasi oleh lima pemain utama—tiga perusahaan asing yang
beroperasi memproduksi pakan ternak dan dua perusahaan memproduksi anak ayam umur
sehari (DOC).
Meskipun ekspektasi terhadap industri ini sangat positif, harga ayam broiler dan telur di
Indonesia secara konsisten lebih tinggi daripada di Eropa dan Amerika. Dari bulan Maret–
Oktober 2018, harga daging ayam broiler di Indonesia rata-rata sekitar Rp40.500/kg, sedangkan
di Uni Eropa harganya sekitar Rp32.600/kg (+24%). Dalam periode yang sama, harga rata-rata
telur di Indonesia adalah sekitar Rp28.000/kg, sedangkan harga telur di Uni Eropa adalah
sebesar Rp21.000/kg (+33%). Perbedaan harga ini sebagian disebabkan oleh perbedaan
permintaan dan penawaran—Indonesia adalah negara Muslim, jadi permintaan daging ayam
lebih besar daripada di negara-negara dengan konsumsi daging babi yang lebih tinggi. Namun,
yang mengejutkan adalah harga di Indonesia lebih tinggi meskipun biaya produksi lebih rendah.
Upah petani di Indonesia lebih rendah daripada di Eropa. Selain itu, pada tahun 2012 Uni Eropa
melarang ayam petelur yang dikandangkan. Hal ini memaksa para peternak ayam petelur untuk
mengurangi kepadatan unggas dan menerapkan metode produksi yang lebih mahal, sehingga
mendorong biaya produksi telur naik. Biaya produksi di Uni Eropa lebih tinggi, tetapi harga
konsumen lebih rendah.
Perbedaan harga ini sebagian juga disebabkan oleh kondisi pasar umum di UE dan Indonesia.
Sementara pasar Eropa adalah pasar yang matang, pertumbuhan berkelanjutan di Indonesia
yang didukung oleh peningkatan permintaan, menjadi elemen penting yang menyebabkan
harga tetap tinggi.
Sementara banyak faktor ekonomi berada di luar kendali Indonesia, harga juga dipengaruhi
oleh kebijakan publik Indonesia. Oleh karena itu, kami mengusulkan modifikasi kebijakan yang
bertujuan untuk mendukung pertumbuhan industri yang sehat, yang dapat disertai juga dengan
harga yang lebih rendah. Tindakan penting pertama adalah menyelaraskan peraturan yang ada,
khususnya Peraturan Menteri Perdagangan (Permendag) Nomor 21 Tahun 2018 dan Peraturan
Menteri Pertanian (Permentan) Nomor 57 Tahun 2015 tentang surat rekomendasi menteri untuk
impor jagung dan hak impor jagung.
Saran kedua kami, terkait dengan Permentan Nomor 26 Tahun 2016, adalah untuk membebaskan
impor stok induk,1 yang memungkinkan produsen unggas untuk lebih bebas menerapkan strategi
kewirausahaan yang sehat daripada mengandalkan estimasi pemerintah yang salah. Pada saat
yang sama, kami percaya bahwa Indonesia perlu untuk terjun ke pasar jagung internasional, alih-alih menjalankan kebijakan perdagangan proteksionis untuk menggenjot produksi lokal.
Peraturan saat ini telah mendorong harga jagung domestik menjadi sangat tinggi dibandingkan
dengan harga internasional. Karena jagung adalah komponen utama pakan unggas, dan pakan
unggas merupakan biaya terbesar dalam produksi unggas di Indonesia, akses bebas ke pasar
internasional akan secara positif sangat memengaruhi biaya produksi di industri unggas
sehingga dapat membantu harga menjadi lebih rendah.
Terakhir, pemerintah dapat memainkan peran penting dalam memperbaiki infrastruktur, yang
pada saat ini membebani industri—terutama dalam hal pengiriman bahan mentah untuk pakan
ternak dari pelabuhan ke pabrik. Perbaikan infrastruktur jalan juga akan memungkinkan
pengangkutan alat berat, yang selanjutnya mendorong modernisasi industri unggas.
Research Interests:
The Indonesian poultry industry is a key sector for the national economy, supplying 65% of all animal protein and employing 10% of the national labour force. All over the country, though local production successfully copes with domestic... more
The Indonesian poultry industry is a key sector for the national economy, supplying 65% of all
animal protein and employing 10% of the national labour force. All over the country, though local
production successfully copes with domestic demand, the potential for growth is high, consistent
with expectations of rising GDP per capita. The market looks healthy and attractive, which has
resulted in this gradual entry of new foreign groups. In past decades, the production process has
evolved and modernized. The market is dominated by five main players—three foreign companies
operating in feed production and two in day-old chick production.
Even though expectations for the industry are strongly positive, prices for both broiler chicken
and eggs are consistently higher in Indonesia than in Europe and America. From March–October
2018, Indonesian broiler chicken meat cost an average of about IDR 40,500/kg, while in the EU
the price was around IDR 32,600/kg (+24%). Over the same period, the average egg price in
Indonesia was around IDR 28,000/kg, compared to just above IDR 21,000/kg (+33%) in the EU.
The differences in price are partially due to differences in demand and supply—Indonesia is a
Muslim country, so the demand for chicken meat may be stronger than in countries with higher
pork consumption. However, Indonesia’s higher prices are surprising given lower production
costs. In Indonesia, farm salaries are lower than in Europe. In addition, the EU banned egg layer
battery cages in 2012, forcing layer farmers to decrease bird density and therefore to implement
more expensive methods of production, pushing up egg production costs. So production costs are
higher in the EU, but consumer prices are lower.
Price differences can also be explained in part by general market conditions in the EU and
Indonesia. While the European market is a mature one, the constant growth in Indonesia,
supported by growing demand, is an important element keeping prices high.
While many economic factors are out of Indonesia’s control, prices are also affected by Indonesian
public policy. Therefore, we propose policy modifications that aim to support sound growth of the
industry, which might be accompanied by lower prices. The first important act would be to resolve
conflicts between existing regulations, in particular between Regulation of the Minister of Trade
(MOT) 21/2018 and Regulation of the Minister of Agriculture (MOA) 57/2015 on the ministerial
recommendation letter for maize import and maize import rights.
Our second suggestion, related to MOA 26/2016, is to liberalize parent stock1 imports, enabling
poultry producers to more freely implement sound entrepreneurial strategies rather than relying
on incorrect government estimations. At the same time, we believe that it is necessary to open
Indonesia to the international market for maize, rather than using trade protections to force local
production. Current regulations have driven domestic maize prices incredibly high compared to
the international price. Since maize is the main component of poultry feed, and feed is in turn the
major cost in Indonesian poultry production, free access to international markets would heavily
and positively affect production costs in the poultry industry, helping prices to cool down.
Finally, the government could play an important role in improving infrastructure, which, at the
moment, burdens the industry—particularly in the case of transporting raw materials for feed
from the ports to the mills. An improvement in road infrastructure would also allow the transport
of heavy machinery, further boosting modernization of the poultry industry.
animal protein and employing 10% of the national labour force. All over the country, though local
production successfully copes with domestic demand, the potential for growth is high, consistent
with expectations of rising GDP per capita. The market looks healthy and attractive, which has
resulted in this gradual entry of new foreign groups. In past decades, the production process has
evolved and modernized. The market is dominated by five main players—three foreign companies
operating in feed production and two in day-old chick production.
Even though expectations for the industry are strongly positive, prices for both broiler chicken
and eggs are consistently higher in Indonesia than in Europe and America. From March–October
2018, Indonesian broiler chicken meat cost an average of about IDR 40,500/kg, while in the EU
the price was around IDR 32,600/kg (+24%). Over the same period, the average egg price in
Indonesia was around IDR 28,000/kg, compared to just above IDR 21,000/kg (+33%) in the EU.
The differences in price are partially due to differences in demand and supply—Indonesia is a
Muslim country, so the demand for chicken meat may be stronger than in countries with higher
pork consumption. However, Indonesia’s higher prices are surprising given lower production
costs. In Indonesia, farm salaries are lower than in Europe. In addition, the EU banned egg layer
battery cages in 2012, forcing layer farmers to decrease bird density and therefore to implement
more expensive methods of production, pushing up egg production costs. So production costs are
higher in the EU, but consumer prices are lower.
Price differences can also be explained in part by general market conditions in the EU and
Indonesia. While the European market is a mature one, the constant growth in Indonesia,
supported by growing demand, is an important element keeping prices high.
While many economic factors are out of Indonesia’s control, prices are also affected by Indonesian
public policy. Therefore, we propose policy modifications that aim to support sound growth of the
industry, which might be accompanied by lower prices. The first important act would be to resolve
conflicts between existing regulations, in particular between Regulation of the Minister of Trade
(MOT) 21/2018 and Regulation of the Minister of Agriculture (MOA) 57/2015 on the ministerial
recommendation letter for maize import and maize import rights.
Our second suggestion, related to MOA 26/2016, is to liberalize parent stock1 imports, enabling
poultry producers to more freely implement sound entrepreneurial strategies rather than relying
on incorrect government estimations. At the same time, we believe that it is necessary to open
Indonesia to the international market for maize, rather than using trade protections to force local
production. Current regulations have driven domestic maize prices incredibly high compared to
the international price. Since maize is the main component of poultry feed, and feed is in turn the
major cost in Indonesian poultry production, free access to international markets would heavily
and positively affect production costs in the poultry industry, helping prices to cool down.
Finally, the government could play an important role in improving infrastructure, which, at the
moment, burdens the industry—particularly in the case of transporting raw materials for feed
from the ports to the mills. An improvement in road infrastructure would also allow the transport
of heavy machinery, further boosting modernization of the poultry industry.
Research Interests:
The aim of the present chapter is to develop a theory of entrepreneurship consistent with the capital theory explained in Ferlito (2016, Chapter 1). In particular, it will be my task to define the relationship between entrepreneurial... more
The aim of the present chapter is to develop a theory of entrepreneurship consistent with the capital theory explained in Ferlito (2016, Chapter 1). In particular, it will be my task to define the relationship between entrepreneurial activity and capital formation. As Kirzner developed a middle ground between Lachmannian hermeneutics and Rothbardian praxeology, I will define my entrepreneurship theory by attempting to find a middle ground between Schumpeter and Kirzner, expanding some hints presented in Ferlito (2015).
Joseph A. Schumpeter developed a very well-known theory of entrepreneurs and entrepreneurship centred on the concept of “new combinations,” which were introduced by special types of humans, entrepreneurs, who were conceived as leaders in the process of change. According to him, innovation and entrepreneurship are destructive elements driving the system beyond an equilibrium position, which sets in motion a competitive process in order to reach a new equilibrium point. Although Austrian by nationality, Schumpeter was never a member of the Austrian School of Economics. However, his position about entrepreneurship is widely commented on by Austrian School members. In particular, Israel M. Kirzner devoted his research activity to developing an alternative concept of entrepreneurship rooted in Misesian human action and in the concept of “alertness” to previously unnoticed profit opportunities.
Joseph A. Schumpeter developed a very well-known theory of entrepreneurs and entrepreneurship centred on the concept of “new combinations,” which were introduced by special types of humans, entrepreneurs, who were conceived as leaders in the process of change. According to him, innovation and entrepreneurship are destructive elements driving the system beyond an equilibrium position, which sets in motion a competitive process in order to reach a new equilibrium point. Although Austrian by nationality, Schumpeter was never a member of the Austrian School of Economics. However, his position about entrepreneurship is widely commented on by Austrian School members. In particular, Israel M. Kirzner devoted his research activity to developing an alternative concept of entrepreneurship rooted in Misesian human action and in the concept of “alertness” to previously unnoticed profit opportunities.
Research Interests:
Research Interests:
Economic reality shows us that business fluctuations are everywhere and the crisis that emerged in the Western world in 2007 is just the latest and most evident manifestation of such dynamics. As mentioned in Ferlito (2016a, pp. 202-203),... more
Economic reality shows us that business fluctuations are everywhere and the crisis that emerged in the Western world in 2007 is just the latest and most evident manifestation of such dynamics. As mentioned in Ferlito (2016a, pp. 202-203), which develops the vision brought out in Ferlito (2014a), capitalism without fluctuations does not exist.
I expressed the idea that business cycles are unavoidable by developing the doctrine of the natural cycle (see in particular Ferlito 2016b, Chapter 3). I will now summarize that framework in order to describe the evolution of the property market in the last decade.
Section 2 presents the theory of the natural cycle, which will be used in section 3 for the analysis of the Malaysian property market over the past decade. According to such framework, business cycles are originated from positive profit expectations and each expansionary wave is followed by a secondary wave, which can be called imitative-speculative, usually supported by credit expansion. Such an evolution can be observed in the Malaysian property market from 1997, while today the declining movement is already initiated.
In section 4, I focus on certain disproportionalities in the housing industry, arguing that the investor focus on the high-end segment was not unjustified and that government action is crowding out private constructors from the affordable housing segment.
In section 5, I present some free market-oriented policy suggestions, aiming to create the conditions to limit the insurgence of future crises, to face the coming property crisis, and to revive the affordable housing market. Section 6 concludes.
I expressed the idea that business cycles are unavoidable by developing the doctrine of the natural cycle (see in particular Ferlito 2016b, Chapter 3). I will now summarize that framework in order to describe the evolution of the property market in the last decade.
Section 2 presents the theory of the natural cycle, which will be used in section 3 for the analysis of the Malaysian property market over the past decade. According to such framework, business cycles are originated from positive profit expectations and each expansionary wave is followed by a secondary wave, which can be called imitative-speculative, usually supported by credit expansion. Such an evolution can be observed in the Malaysian property market from 1997, while today the declining movement is already initiated.
In section 4, I focus on certain disproportionalities in the housing industry, arguing that the investor focus on the high-end segment was not unjustified and that government action is crowding out private constructors from the affordable housing segment.
In section 5, I present some free market-oriented policy suggestions, aiming to create the conditions to limit the insurgence of future crises, to face the coming property crisis, and to revive the affordable housing market. Section 6 concludes.
Research Interests:
The paper deals with the continuities and discontinuities between some classical, Austrian and neo-Austrian authors with regard first to the theory of capital and then to the theory of entrepreneurship. Part I focuses on the elements of... more
The paper deals with the continuities and discontinuities between some classical, Austrian and neo-Austrian authors with regard first to the theory of capital and then to the theory of entrepreneurship. Part I focuses on the elements of continuity between the classical and the Austrian theory of capital. These elements have been singled out by dealing first with the distinction between individual and national capital; and then with the difference between the resulting circulating-fixed capital and free-invested capital distinctions in the light, first, of the concept of roundaboutness and, then, of the method of vertical integration. Part II focuses on the elements of continuity between the Austrian theory of individual behaviour and the classical theory of national wealth. The distinctions between logical and historical time and between economics of time and economics in time are used to assess the links between the theory of capital as developed by the classics and Böhm-Bawerk, on the one hand, and the theory of entrepreneurship as developed by the neo-Austrians, on the other.
The paper deals with the continuities and discontinuities between some classical, Austrian and neo-Austrian authors with regard first to the theory of capital and then to the theory of entrepreneurship. Part I focuses on the elements of... more
The paper deals with the continuities and discontinuities between some
classical, Austrian and neo-Austrian authors with regard first to the theory of capital and then to the theory of entrepreneurship. Part I focuses on the elements of continuity between the classical and the Austrian theory of capital. These elements have been singled out by dealing first with the distinction between individual and national capital;
and then with the difference between the resulting circulating-fixed capital and free-invested capital distinctions in the light, first, of the concept of roundaboutness and, then, of the method of vertical integration. Part II focuses on the elements of continuity between the Austrian theory of individual behaviour and the classical theory of national wealth. The distinctions between logical and historical time and between economics of time and economics in time are used to assess the links between the theory of capital as developed by the classics and Böhm-Bawerk, on the one hand, and the theory of entrepreneurship as developed by the neo-Austrians, on the other.
classical, Austrian and neo-Austrian authors with regard first to the theory of capital and then to the theory of entrepreneurship. Part I focuses on the elements of continuity between the classical and the Austrian theory of capital. These elements have been singled out by dealing first with the distinction between individual and national capital;
and then with the difference between the resulting circulating-fixed capital and free-invested capital distinctions in the light, first, of the concept of roundaboutness and, then, of the method of vertical integration. Part II focuses on the elements of continuity between the Austrian theory of individual behaviour and the classical theory of national wealth. The distinctions between logical and historical time and between economics of time and economics in time are used to assess the links between the theory of capital as developed by the classics and Böhm-Bawerk, on the one hand, and the theory of entrepreneurship as developed by the neo-Austrians, on the other.
Research Interests:
Capital theory is one of the most controversial topics in economics and an object of debate inside the Austrian School of Economics. If Böhm-Bawerk’s capital theory, usually identified as the Austrian Capital Theory, left many Austrian... more
Capital theory is one of the most controversial topics in
economics and an object of debate inside the Austrian School of
Economics. If Böhm-Bawerk’s capital theory, usually identified
as the Austrian Capital Theory, left many Austrian economists
unsatisfied, a clear definition of capital, consistent with
Mengerian subjectivism, is still to be seen inside the School.
Following Ludwig Lachmann’s application of hermeneutics to
economics, this paper attemps to define capital as the outcome of subjective mental processes, determined by individual
intentions and expectations, rather than by specific physical or
economic features. The paper does not aim to totally redefine
capital theory but, more specifically, to reach a definition for
capital, capital goods, and capital value; these definitions
attempt to complete the work initiated by Lachmann in the
hope of finding a certain consensus among scholars dissatisfied
with the present state of capital theory, which is dominated by
an objectivist post-Ricardian perspective. Indeed, when
defining capital Lachmann seems unable to remain consistent
with his own brilliant criticism of the Ricardian perspective. In
particular, by distinguishing between ‘potential’ and ‘actual’
capital goods and capital in general, I try to overcome this gap
and to define capital and capital goods in radically subjectivist
terms.
economics and an object of debate inside the Austrian School of
Economics. If Böhm-Bawerk’s capital theory, usually identified
as the Austrian Capital Theory, left many Austrian economists
unsatisfied, a clear definition of capital, consistent with
Mengerian subjectivism, is still to be seen inside the School.
Following Ludwig Lachmann’s application of hermeneutics to
economics, this paper attemps to define capital as the outcome of subjective mental processes, determined by individual
intentions and expectations, rather than by specific physical or
economic features. The paper does not aim to totally redefine
capital theory but, more specifically, to reach a definition for
capital, capital goods, and capital value; these definitions
attempt to complete the work initiated by Lachmann in the
hope of finding a certain consensus among scholars dissatisfied
with the present state of capital theory, which is dominated by
an objectivist post-Ricardian perspective. Indeed, when
defining capital Lachmann seems unable to remain consistent
with his own brilliant criticism of the Ricardian perspective. In
particular, by distinguishing between ‘potential’ and ‘actual’
capital goods and capital in general, I try to overcome this gap
and to define capital and capital goods in radically subjectivist
terms.
Research Interests:
The economic crisis that erupted in 2007 was presented, when it burst in the summer of that year, with bank and stock market collapses, as a typical financial crisis. This presentation was followed by numerous attacks on the free market... more
The economic crisis that erupted in 2007 was presented, when it burst in the summer of that year, with bank and stock market collapses, as a typical financial crisis. This presentation was followed by numerous attacks on the free market and the capitalist system; sometime ideologically targeted yet often incapable of grasping the true nature of the crisis. Subsequently, the emphasis shifted to the question of public indebtedness and, in 2013, to the single European currency, with the clear intention on the part of certain Governments to return to the possibility of devaluing a national currency in order to obtain short term export advantages.
Nowadays, the great depression is still and mostly labeled as the 2008 financial crisis. Our analysis, on the other hand, will show that: 1) the crisis cannot be called neither financial, nor fiscal, nor even one of currency; 2) the crisis is more generally economic in nature and caused by systematic modifications of the structure of production and the allocation of employment resources.
The crisis drove Sachs (2010, 20) to conclude that “classic Keynesians are singing their swan song” and that “faced by a public debt crisis, the time has come to abandon short-term theories and prioritize the long-term investments needed to ensure a solid recovery”. However, the great depression did not bury Keynesian economists; led by Krugman (2008), post-Keynesian analyses did not miss the chance for asking for more government intervention, consumption stimuli and relaxation of public budget constraints; for many of them, moreover, it was occasion to ask for further financial regulation. On the opposite side, Austrian economists took occasion to revive the Austrian Business Cycle Theory (ABCT) and to point the finger against the distortive action played by government intervention and in particular by central banks. Neoclassical economists, instead, suffered more than the others, apparently unable to deal with the events and focusing on proposing further interest rate cuts. Some of them brought out interesting reflections, questioning the mainstream approach and trying to incorporate heterodox elements in their analyses; it is the case, i.e., of Borio (2012) and Calvo (2013). Leijonhufvud (2009), illuminating as usual, presented an analysis that tried to learn from Keynes, the Austrians and Hyman Minsky.
The most interesting fact emerging from the post-crisis economic debate is maybe that, while neoclassical mainstream is suffering, old heterodox schools are trying to revive themselves and face a growing consensus. Under this perspective it emerges that the Hayek/Keynes debate is far to be defunct. Disciples of the two great economists are still on the fighting ring. Keynesians blame the free market while Austrians believe that without government induced monetary distortions crises would not arise.
According to our vision, instead, the first point to stress is that economic crises do not demonstrate the end of the capitalist economic system; on the contrary, they testify its vitality. In Ferlito (2013, 30) and in Ferlito (2014a) we tried to demonstrate that capitalism without fluctuations does not exist. Indeed, we find ourselves in good company when believing that the cycle is the real form of economic development in a capitalistic system. Marx was the first to realize this.
The same awareness is to be seen in Schumpeter’s vision, influenced by Spiethoff (1925, 112), who concludes that “the cyclical upswings and downswings are the evolutionary forms of the highly developed capitalist economy and their antithetic stimuli condition its progress”. In turn, the Austrian economist influenced his student Paolo Sylos Labini, and similar considerations can be found in Lachmann (1956, 110-112). Realizing that the cyclic form is typical of capitalist development, and is also echoed in the words of another Italian economist, Marco Fanno (1931, 248-249).
Supported by the testimony of such economists, we shall bring out the motivations which drove us to the same conclusions. The core of our analysis will be the accent on the role of expectations, time preferences and innovation mechanisms. We will build our theory on the pillar of the ABCT; however, as we shall demonstrate, Mises’s approach, supporting the thesis that crises happen only when monetary authorities intervene on the money supply, needs to be overcome. Austrian tradition, in fact, distinguishes between sustainable and unsustainable booms; only in the latter situation crises arise. Instead, we will argue that depressions always follow booms; the difference is only in intensity and duration.
In order to support our view, we shall abandon Mises’s view and use instead Hayek’s perspective as starting point. Such perspective will be then integrated with key elements coming from Schumpeter and Lachmann.
Nowadays, the great depression is still and mostly labeled as the 2008 financial crisis. Our analysis, on the other hand, will show that: 1) the crisis cannot be called neither financial, nor fiscal, nor even one of currency; 2) the crisis is more generally economic in nature and caused by systematic modifications of the structure of production and the allocation of employment resources.
The crisis drove Sachs (2010, 20) to conclude that “classic Keynesians are singing their swan song” and that “faced by a public debt crisis, the time has come to abandon short-term theories and prioritize the long-term investments needed to ensure a solid recovery”. However, the great depression did not bury Keynesian economists; led by Krugman (2008), post-Keynesian analyses did not miss the chance for asking for more government intervention, consumption stimuli and relaxation of public budget constraints; for many of them, moreover, it was occasion to ask for further financial regulation. On the opposite side, Austrian economists took occasion to revive the Austrian Business Cycle Theory (ABCT) and to point the finger against the distortive action played by government intervention and in particular by central banks. Neoclassical economists, instead, suffered more than the others, apparently unable to deal with the events and focusing on proposing further interest rate cuts. Some of them brought out interesting reflections, questioning the mainstream approach and trying to incorporate heterodox elements in their analyses; it is the case, i.e., of Borio (2012) and Calvo (2013). Leijonhufvud (2009), illuminating as usual, presented an analysis that tried to learn from Keynes, the Austrians and Hyman Minsky.
The most interesting fact emerging from the post-crisis economic debate is maybe that, while neoclassical mainstream is suffering, old heterodox schools are trying to revive themselves and face a growing consensus. Under this perspective it emerges that the Hayek/Keynes debate is far to be defunct. Disciples of the two great economists are still on the fighting ring. Keynesians blame the free market while Austrians believe that without government induced monetary distortions crises would not arise.
According to our vision, instead, the first point to stress is that economic crises do not demonstrate the end of the capitalist economic system; on the contrary, they testify its vitality. In Ferlito (2013, 30) and in Ferlito (2014a) we tried to demonstrate that capitalism without fluctuations does not exist. Indeed, we find ourselves in good company when believing that the cycle is the real form of economic development in a capitalistic system. Marx was the first to realize this.
The same awareness is to be seen in Schumpeter’s vision, influenced by Spiethoff (1925, 112), who concludes that “the cyclical upswings and downswings are the evolutionary forms of the highly developed capitalist economy and their antithetic stimuli condition its progress”. In turn, the Austrian economist influenced his student Paolo Sylos Labini, and similar considerations can be found in Lachmann (1956, 110-112). Realizing that the cyclic form is typical of capitalist development, and is also echoed in the words of another Italian economist, Marco Fanno (1931, 248-249).
Supported by the testimony of such economists, we shall bring out the motivations which drove us to the same conclusions. The core of our analysis will be the accent on the role of expectations, time preferences and innovation mechanisms. We will build our theory on the pillar of the ABCT; however, as we shall demonstrate, Mises’s approach, supporting the thesis that crises happen only when monetary authorities intervene on the money supply, needs to be overcome. Austrian tradition, in fact, distinguishes between sustainable and unsustainable booms; only in the latter situation crises arise. Instead, we will argue that depressions always follow booms; the difference is only in intensity and duration.
In order to support our view, we shall abandon Mises’s view and use instead Hayek’s perspective as starting point. Such perspective will be then integrated with key elements coming from Schumpeter and Lachmann.
Research Interests:
Joseph A. Schumpeter developed a very well-known theory of entrepreneurs and entrepreneurship, centred on the concept of ‘new combinations’. According to him, innovation and entrepreneurship are destructive elements driving the system... more
Joseph A. Schumpeter developed a very well-known theory of entrepreneurs and entrepreneurship, centred on the concept of ‘new combinations’. According to him, innovation and entrepreneurship are destructive elements driving the system beyond an equilibrium position and setting in motion a competitive process, in order to reach a new equilibrium point. Though Austrian, Schumpeter was never a member of the Austrian School of Economics. However, his position as regards entrepreneurship is widely commented on by Austrian School members. In particular, Israel M. Kirzner devoted his research activity to develop an alternative concept of entrepreneurship rooted in Misesian human action and the concept of ‘alertness’. This paper aims to analyze and compare the two positions, in an attempt not so much to stress differences but to find possible common paths for further developments of the concept of entrepreneurship.
Research Interests:
Research Interests:
Research Interests:
Mentre negli anni Trenta del Novecento Keynes e Hayek sono le figure di maggior rilievo nell’ambito di un infuocato dibattito accademico su moneta e capitale, in cui Keynes coinvolge anche e soprattutto l’italiano Piero Sraffa, può... more
Mentre negli anni Trenta del Novecento Keynes e Hayek sono le figure di maggior rilievo nell’ambito di un infuocato dibattito accademico su moneta e capitale, in cui Keynes coinvolge
anche e soprattutto l’italiano Piero Sraffa, può sembrare che l’economista austriaco abbia rinunciato ad una demolizione organica delle idee espresso dal suo rivale nella Teoria Generale del 1936. Lo stesso Hayek in futuro avrà occasione di lamentarsi di non aver dedicato un volume apposito alla critica delle teorie keynesiane. Tuttavia, come dimostrato in Sanz Bas
(2011), benché non si sia svolto un dibattito come quello sul Trattato sulla moneta, nei successivi lavori di Hayek è possibile individuare numerose critiche verso le più importanti conclusioni della nuova macroeconomia di Cambridge.
Nei decenni successivi, tuttavia, il ‘cavalierie austriaco’ di un nuovo dibattito Vienna-Cambridge è Ludwig M. Lachmann (1906-1990), già studente di Hayek alla London School of
Economics durante gli anni Trenta e successivamente professore a Johannesburg e New York.
Lachmann sarà poi uno dei protagonisti del revival austriaco post-1974 (anno del conferimento del premio Nobel a Hayek) e il fondatore, in seno alla moderna scuola austriaca, della corrente ermeneutica, opposta ai seguaci di Rothbard.
Nel riaccendere la controversia tra Vienna e Cambridge, Lachmann non attacca Keynes, di cui difende l’approccio soggettivista e l’accento sul ruolo delle aspettative, ma i suoi seguaci, la ‘nuova’ scuola di Cambrdige sviluppata da Joan Robinson e Piero Sraffa.
L’obiettivo della vita scientifica di Lachmann è infatti quello di edificare un nuovo paradigma economico, fondato sull’idea di processo di mercato, di aspettative e di società caleidoscopica (Shackle); è a tal fine che gli sviluppa il suo profondo attacco alla nuova macroeconomia di Cambridge, sorta dalle ceneri della seconda guerra mondiale negli anni Cinquanta e Sessanta del Novecento. La polemica contro la moderna macroeconomia emerge da tutti i suoi lavori, ma risulta particolarmente evidente in Lachmann (1973, 1986a). I suoi
obiettivi preferiti sono Sraffa e Joan Robinson, colpevoli, a dire di Lachmann, di aver abbandonato il soggettivismo keynesiano per sviluppare un nuovo approccio neo-ricardiano, accusato di eccessivo formalismo e di ignorare i microfondamenti che sono alla base di ogni scelta ed azione umana.
Ma l’attacco di Lachmann non è puramente epistemologico. Egli tenta di demolire tutti i pilastri della macroeconomia cantabrigense: il capitale come aggregato, l’equilibrio di lungo
periodo, l’assenza di innovazioni e mutamenti tecnologici, il concetto di tasso di profitto. Il punto di partenza dell’economista tedesco è dato dall’idea di una scienza economica basata sulle aspettative umane come unica origine possibile per le azioni umane. Un’origine, peraltro, mai doma, e continuamente influenzata dai mutamenti tecnologici e dall’evoluzione delle informazioni.
anche e soprattutto l’italiano Piero Sraffa, può sembrare che l’economista austriaco abbia rinunciato ad una demolizione organica delle idee espresso dal suo rivale nella Teoria Generale del 1936. Lo stesso Hayek in futuro avrà occasione di lamentarsi di non aver dedicato un volume apposito alla critica delle teorie keynesiane. Tuttavia, come dimostrato in Sanz Bas
(2011), benché non si sia svolto un dibattito come quello sul Trattato sulla moneta, nei successivi lavori di Hayek è possibile individuare numerose critiche verso le più importanti conclusioni della nuova macroeconomia di Cambridge.
Nei decenni successivi, tuttavia, il ‘cavalierie austriaco’ di un nuovo dibattito Vienna-Cambridge è Ludwig M. Lachmann (1906-1990), già studente di Hayek alla London School of
Economics durante gli anni Trenta e successivamente professore a Johannesburg e New York.
Lachmann sarà poi uno dei protagonisti del revival austriaco post-1974 (anno del conferimento del premio Nobel a Hayek) e il fondatore, in seno alla moderna scuola austriaca, della corrente ermeneutica, opposta ai seguaci di Rothbard.
Nel riaccendere la controversia tra Vienna e Cambridge, Lachmann non attacca Keynes, di cui difende l’approccio soggettivista e l’accento sul ruolo delle aspettative, ma i suoi seguaci, la ‘nuova’ scuola di Cambrdige sviluppata da Joan Robinson e Piero Sraffa.
L’obiettivo della vita scientifica di Lachmann è infatti quello di edificare un nuovo paradigma economico, fondato sull’idea di processo di mercato, di aspettative e di società caleidoscopica (Shackle); è a tal fine che gli sviluppa il suo profondo attacco alla nuova macroeconomia di Cambridge, sorta dalle ceneri della seconda guerra mondiale negli anni Cinquanta e Sessanta del Novecento. La polemica contro la moderna macroeconomia emerge da tutti i suoi lavori, ma risulta particolarmente evidente in Lachmann (1973, 1986a). I suoi
obiettivi preferiti sono Sraffa e Joan Robinson, colpevoli, a dire di Lachmann, di aver abbandonato il soggettivismo keynesiano per sviluppare un nuovo approccio neo-ricardiano, accusato di eccessivo formalismo e di ignorare i microfondamenti che sono alla base di ogni scelta ed azione umana.
Ma l’attacco di Lachmann non è puramente epistemologico. Egli tenta di demolire tutti i pilastri della macroeconomia cantabrigense: il capitale come aggregato, l’equilibrio di lungo
periodo, l’assenza di innovazioni e mutamenti tecnologici, il concetto di tasso di profitto. Il punto di partenza dell’economista tedesco è dato dall’idea di una scienza economica basata sulle aspettative umane come unica origine possibile per le azioni umane. Un’origine, peraltro, mai doma, e continuamente influenzata dai mutamenti tecnologici e dall’evoluzione delle informazioni.
Research Interests:
After World War II, and in particular during the 1960s and the 1970s, many developing countries began their industrial revolution path. In particular, most of them followed a path of government-led industrial development, with central... more
After World War II, and in particular during the 1960s and the 1970s, many developing countries began their industrial revolution path. In particular, most of them followed a path of government-led industrial development, with central planning at the heart of the industrial policy. Such a model is not new in economic history and it is typical of many ‘second-comers’ in
the industrialization process. The most famous one is the case of Prussia/Germany: with the Zollverein (1833-34) and after the unification in 1870, it was the government which stimulated the
development of a powerful heavy industrial system, following what was preached at the time by Friedrich List. In particular, the key point of List preaching was that second-comers countries need to protect their industrialization process (characterized by infant industries) from foreign competition. According to List, once the protected industries reach an adequate competitive level, protection should be removed and the national companies should face competition in the market, in order to stimulate further technological development. Many second-comers countries embraced this model; however, in most cases they failed to follow the second part of List’s recommendations: opening to the market in a second stage.
the industrialization process. The most famous one is the case of Prussia/Germany: with the Zollverein (1833-34) and after the unification in 1870, it was the government which stimulated the
development of a powerful heavy industrial system, following what was preached at the time by Friedrich List. In particular, the key point of List preaching was that second-comers countries need to protect their industrialization process (characterized by infant industries) from foreign competition. According to List, once the protected industries reach an adequate competitive level, protection should be removed and the national companies should face competition in the market, in order to stimulate further technological development. Many second-comers countries embraced this model; however, in most cases they failed to follow the second part of List’s recommendations: opening to the market in a second stage.
Research Interests:
In the second half of the 19th century, German-speaking countries developed a very intense economic debate about crises. Mikhail Ivanovich Tugan-Baranovskij’s analysis may be considered as the point of transition between different... more
In the second half of the 19th century, German-speaking countries developed a very intense economic debate
about crises. Mikhail Ivanovich Tugan-Baranovskij’s analysis may be considered as the point of transition between
different crisis theories and the development of organic thinking about the business cycle. It was an integral part of the
German debate and had a decisive influence on Arthur Spiethoff’s elaboration – perhaps the most organic analysis of
the cycle developed within the German historical school.
Arthurs Spiethoff’s influence was recognized by important authors such as Friedrich A. von Hayek and Joseph A.
Schumpeter. Both the Austrian economists admitted their debt toward the German scholar in elaborating their business
cycle theories. The present paper aims to illustrate one of the important roots in Spiethoff’s approach, an approach that
in turn became a crucial reference for other important economists.
about crises. Mikhail Ivanovich Tugan-Baranovskij’s analysis may be considered as the point of transition between
different crisis theories and the development of organic thinking about the business cycle. It was an integral part of the
German debate and had a decisive influence on Arthur Spiethoff’s elaboration – perhaps the most organic analysis of
the cycle developed within the German historical school.
Arthurs Spiethoff’s influence was recognized by important authors such as Friedrich A. von Hayek and Joseph A.
Schumpeter. Both the Austrian economists admitted their debt toward the German scholar in elaborating their business
cycle theories. The present paper aims to illustrate one of the important roots in Spiethoff’s approach, an approach that
in turn became a crucial reference for other important economists.
Research Interests:
In this paper we first address a long-standing criticism of human rationality and what that means for the role of government. We review and compare much of the literature on rationality and demonstrate that various authors within various... more
In this paper we first address a long-standing criticism of human rationality and what that means for the role of government. We review and compare much of the literature on rationality and demonstrate that various authors within various fields often mean very different things by the word «rational.»
While we make no claims as to whether or not humans always behave rationally, we point out the flawed logic for what is suggested for the role of government as a way of addressing the human irrationality problem. Building on the Mises-Rothbard-Huerta de Soto tradition, we argue that what is more
important than perfect rationality is purposeful action. We explain the dynamic nature of the market in which time plays an important role, and humans act with expectations to accomplish goals, learn from past mistakes, discover new information and modify their plans accordingly. Using Hayek’s approach, we discuss the knowledge problem in which data is dispersed among millions of individuals (unknown in its entirety to any central authority) as well as the problems with applying the scientific method exactly as it is used in the natural
sciences to the human behavioral sciences. These problems combined, we argue, make for a much more disastrous system than would be a system in which often irrational individuals would be free to make mistakes for themselves, discover
new information and take actions for their own betterment.
While we make no claims as to whether or not humans always behave rationally, we point out the flawed logic for what is suggested for the role of government as a way of addressing the human irrationality problem. Building on the Mises-Rothbard-Huerta de Soto tradition, we argue that what is more
important than perfect rationality is purposeful action. We explain the dynamic nature of the market in which time plays an important role, and humans act with expectations to accomplish goals, learn from past mistakes, discover new information and modify their plans accordingly. Using Hayek’s approach, we discuss the knowledge problem in which data is dispersed among millions of individuals (unknown in its entirety to any central authority) as well as the problems with applying the scientific method exactly as it is used in the natural
sciences to the human behavioral sciences. These problems combined, we argue, make for a much more disastrous system than would be a system in which often irrational individuals would be free to make mistakes for themselves, discover
new information and take actions for their own betterment.
Research Interests:
Research Interests:
The conventional version of Austrian business cycle theory focuses on a temporary imbalance between natural and monetary rates of interest. When, because of the role of monetary authorities in defining the monetary rate, the two values... more
The conventional version of Austrian business cycle theory focuses on a temporary imbalance between natural and monetary rates of interest. When, because of the role of monetary authorities in defining the monetary rate, the two values are in a situation of imbalance, the resulting expansion stage is followed by a recession. On the other hand, if instead the expansive phase arises without any interference by monetary authorities but through re-adaptation of the productive structure to a modified structure of temporal preferences, a period of sustainable growth begins that will not be followed by a crisis. The purpose of this essay is to demonstrate, on the other hand, that because of profit-expectations and the combined action of Schumpeterian elements (imitations-speculations and the ‘creation of money’ by banks), even a so-called ‘sustainable’ boom will be affected by a liquidation and settling crisis. What distinguishes the latter situation from the conventional case of imbalance between monetary and natural rates is not the onset or otherwise of a crisis but, rather, its intensity and duration. We will define as natural an economic cycle characterised by a stage of expansion considered to be ‘sustainable’ in the Austrian theory but followed by an inevitable readjustment crisis.
Research Interests:
Research Interests:
Research Interests:
Under the deteriorated global outlook, East Asia is projected to do much better than Europe and North America. Enjoying a windfall from the risen prices of primary commodities, Indonesia is also projected to perform well in 2023, if not,... more
Under the deteriorated global outlook, East Asia is projected to do much better than Europe and North America. Enjoying a windfall from the risen prices of primary commodities, Indonesia is also projected to perform well in 2023, if not, a little weaker than in 2022. Going deeper into macroeconomic details, like household consumption and gauging conditions in some industries, offer a differentiated picture that strategists in governments and corporations will need to look into while striving to navigate the disruptive environment as winner.
Research Interests:
This book proposes to assess and address urban poverty in Malaysia. As Malaysia emerges from the COVID-19 pandemic, decades of progress in successful poverty reduction have been reversed, especially in urban areas nationwide. Lockdown... more
This book proposes to assess and address urban poverty in Malaysia. As Malaysia emerges from the COVID-19 pandemic, decades of progress in successful poverty reduction have been reversed, especially in urban areas nationwide. Lockdown measures resulted in rising unemployment and underemployment, decreased salaries, and reduced household incomes, all of which contributed to elevated levels of poverty.
In comparison with the rural poor, the urban poor bore the brunt of the reversal due to widespread business closures that impacted informal business activity in cities, the inability to transition to remote working arrangements, a substantial reduction in salaries and wages, increased urban food insecurity, and tight quarters in low-cost housing projects.
The approach the authors embrace is to move away from the idea of providing the urban poor with the resources they do not have, but rather to promote reforms that can place them in the conditions to earn the resources they believe they need. The book’s motto is: social mobility through entrepreneurship.
This research project was initiated by the Embassy of the Kingdom of Belgium to Malaysia and Brunei, in the person of H.E. Mr Pascal Grégoire, and jointly conducted by the Center for Market Education and Bait Al-Amanah.
The authors:
Benedict Weerasena is the Research Director of Bait Al Amanah (House of Trust).
Carmelo Ferlito is the CEO of the Center for Market Education (CME).
H.E. Pascal Grégoire, Ambassador of the Kingdom of Belgium to Malaysia and Brunei, provided a foreword to the book.
In comparison with the rural poor, the urban poor bore the brunt of the reversal due to widespread business closures that impacted informal business activity in cities, the inability to transition to remote working arrangements, a substantial reduction in salaries and wages, increased urban food insecurity, and tight quarters in low-cost housing projects.
The approach the authors embrace is to move away from the idea of providing the urban poor with the resources they do not have, but rather to promote reforms that can place them in the conditions to earn the resources they believe they need. The book’s motto is: social mobility through entrepreneurship.
This research project was initiated by the Embassy of the Kingdom of Belgium to Malaysia and Brunei, in the person of H.E. Mr Pascal Grégoire, and jointly conducted by the Center for Market Education and Bait Al-Amanah.
The authors:
Benedict Weerasena is the Research Director of Bait Al Amanah (House of Trust).
Carmelo Ferlito is the CEO of the Center for Market Education (CME).
H.E. Pascal Grégoire, Ambassador of the Kingdom of Belgium to Malaysia and Brunei, provided a foreword to the book.
Research Interests:
This report prepared by the Economic team of Bait Al Amanah presents statistics, insights, and policy recommendations towards sustainable development in Johor. Using a multi-disciplinary approach, the praise-worthy achievements of the... more
This report prepared by the Economic team of Bait Al Amanah presents statistics, insights, and policy recommendations towards sustainable development in Johor. Using a multi-disciplinary approach, the praise-worthy achievements of the state were objectively highlighted, while areas for improvement were explored. This report covers a wide range of subject matter including governance, socioeconomic growth, human capital, infrastructure, environment, healthcare, and education among others.
Research Interests:
Dr Carmelo Ferlito has been an enthusiastic writer on economic and political issues since the age of 16, and since then he has published articles and opinions on different media outlets in Italy, Malaysia, Indonesia and the United States.... more
Dr Carmelo Ferlito has been an enthusiastic writer on economic and political issues since the age of 16, and since then he has published articles and opinions on different media outlets in Italy, Malaysia, Indonesia and the United States. The present book collects the op-eds he published since he moved to Malaysia, in 2011. The collection is a fascinating journey into the political and economic evolution of Malaysia in the past decade from the perspective of an economist who is also a manager and who had the chance to travel extensively through the whole Southeast Asia.
Research Interests:
In presenting Hermeneutics of Capital, the author fears that most modern economists are not prepared or even interested in the approach that has been taken in this book. Today, economists are more likely to search for “exact” theories... more
In presenting Hermeneutics of Capital, the author fears that most modern economists are not prepared or even interested in the approach that has been taken in this book. Today, economists are more likely to search for “exact” theories functional relationships between often logically independent variables rather than to question the nature of their science and its main task.
This book argues that “economics is about human nature, human conduct and human institutions”, or what Mises called human action. The present book, however, is not an epistemological one. It is about capital theory. The attempt of Hermeneutics of Capital is to reconcile man and capital, which are often presented as competing elements in a conflictual world. What the author tries to do is even more than looking for a simple reconciliation; following Ludwig Lachmann’s application of hermeneutics to economics, the author tries to define capital as the outcome of subjective mental processes, determined by individual intentions and expectations and not by specific physical or economic features.
The author defines the theory as post-Austrian. In fact, the author’s attempt is to further develop the Austrian School of Economics teaching, trying to contribute in enhancing concepts and theories which are believed to be necessarily reshaped. The author connected his capital theory with a consistent entrepreneurship theory, which goes beyond the usual contraposition between Kirzner’s and Schumpeter’s entrepreneurial theories and builds a synthesis centred on the idea of entrepreneurship as a subset of Misesian action involving specific capital formation processes. Moreover, the author took into account the traditional version of the Austrian Business Cycle Theory and critically revised it, arguing that crises are not simply the consequences of monetary manipulations, but they are the natural consequence of every expansionary wave.
Shackle reminded us that a “good economist is like a bottle of wine. He must begin by having the luck to be laid down, as it were, in a vintage year, when he himself and his class companions are the high-quality stuff in which ideas and theories ferment and discourse sparkles in a glow of golden light. But this is not enough. He must mature”. This book helps guide readers to understand reality.
This book argues that “economics is about human nature, human conduct and human institutions”, or what Mises called human action. The present book, however, is not an epistemological one. It is about capital theory. The attempt of Hermeneutics of Capital is to reconcile man and capital, which are often presented as competing elements in a conflictual world. What the author tries to do is even more than looking for a simple reconciliation; following Ludwig Lachmann’s application of hermeneutics to economics, the author tries to define capital as the outcome of subjective mental processes, determined by individual intentions and expectations and not by specific physical or economic features.
The author defines the theory as post-Austrian. In fact, the author’s attempt is to further develop the Austrian School of Economics teaching, trying to contribute in enhancing concepts and theories which are believed to be necessarily reshaped. The author connected his capital theory with a consistent entrepreneurship theory, which goes beyond the usual contraposition between Kirzner’s and Schumpeter’s entrepreneurial theories and builds a synthesis centred on the idea of entrepreneurship as a subset of Misesian action involving specific capital formation processes. Moreover, the author took into account the traditional version of the Austrian Business Cycle Theory and critically revised it, arguing that crises are not simply the consequences of monetary manipulations, but they are the natural consequence of every expansionary wave.
Shackle reminded us that a “good economist is like a bottle of wine. He must begin by having the luck to be laid down, as it were, in a vintage year, when he himself and his class companions are the high-quality stuff in which ideas and theories ferment and discourse sparkles in a glow of golden light. But this is not enough. He must mature”. This book helps guide readers to understand reality.
Research Interests:
Research Interests:
Research Interests:
Research Interests:
Research Interests:
Research Interests: Fascism and Corporatism
I am glad to present to the readers of the Journal of Reviews on Global Economics this special issue titled “Hayek, Keynes and the crisis. Analyses and Remedies”, named after a scientific conference which was held between 22 and 24... more
I am glad to present to the readers of the Journal of Reviews on Global Economics this special issue titled “Hayek, Keynes and the crisis. Analyses and Remedies”, named after a scientific conference which was held between 22 and 24 January 2015 at the Amphithéâtre Vedel, Université Paris-Sud, Faculté Jean Monnet, Sceaux, in France. The conference was organized by the Research Centres of the Université Paris-Sud “Collège d'Etudes Interdisciplinaires” and “Réseaux Innovation Territoires et Mondialisation” and sponsored by the International Journal of Political Economy, the Review of Keynesian Economics, the book series “New Directions in Post-Keynesian Economics” (published by Edward Elgar), the Association pour le Développement des Etudes Keynésiennes and the Association Française d’Economie Politique.
Important scholars from all around the world answered the call from Bernard Vallageas and François Facchini in order to discuss the heritage, for present day economics, of the Hayek/Keynes controversy, developed during the 1930s. The controversies between Hayek and Keynes began in 1929 when Hayek, presented his lectures on business cycles at the London School of Economics, invited by Lionel Robbins. The opposition appeared in their respective books Prices and Production, Monetary Theory and the Trade Cycle, A Treatise on Money and their comments on these books published in journals. The object of the conference was to analyze the controversies between Hayek and Hayekians on one side and Keynes and Keynesians on the other side.
This special issue hosts some of the contributions presented during that conference (Levy Orlik, Facchini, Sanz Bas and Morillo, Ferlito). However, together with the JRGE editors we decided to open the debate to a wider spectrum of scholars and the papers here published are the result of a call for papers on the topic. We are therefore glad to present here original contributions by Heinz D. Kurz, André Getzmann, Sebastian Lang, Klaus Spremann, Max Gillman and Giovanni Bella.
We open the special issue with the paper by Heinz D. Kurz, who brings new light on the debate on crises and cycles between Hayek, Keynes and Sraffa; in particular, prof. Kurz demonstrates how Sraffa, while strongly criticizing the Hayek’s perspective, at the same time did not support Keynes’ view. The theme will be reprised in my paper, published as the last one, in which the Sraffa/Hayek debate is analyzed with Lachmann’s eyes; the German economist, in looking for microfoundations for the capital analysis, accused Sraffa and the Cambridge School to develop a new neo-Ricardian approach, grounded on macroformalism and aggregation.
Noemi Levy Orlik, while discussing Hayek and the Austrian monetary school innovative ideas in terms of money in capitalist economies, embraces a new-Keyensian view according to which the main way to overcome economic activity fluctuations is to implement expansive fiscal policies, opposing wages cuts, and promoting financial market regulation. A conciliatory approach is instead proposed by François Facchini, who explains how the regulated capitalism is the cause of market instability and financial fragility: moral hazard encourages commercial banks to take risks and therefore post-2008 crisis policies went in the wrong direction.
David Sanz Bas and Juan Morillo come back to the main issue, the Hayek/Keynes debate, and demonstrate how the general idea according to which, after the debate on the Treatise on Money Hayek renounced to criticize The General Theory, is wrong. We need instead to accurately read post-1936 Hayek’s works to find how a wide criticism can be found.
André Getzmann, Sebastian Lang and Klaus Spremann try to combine Hayek’s and Keynes’ approaches looking at companies’ decisions to finance investments and at their agility to adjust their capital structure. They then study the relationship between capital structure to finance corporate production and shifts in aggregate demand. Their results provide evidence for Keynes’ General Theory from a firm level perspective: firms respond very fast to aggregate demand by adjusting capital and production structure correspondingly.
Max Gillman retrospectively look at how Hayek’s and Fisher’s idea on the Great Depression arose as opposed to Keynes’ interventionism. Through an interesting quantitative analysis, Gillman demonstrate that the present Great Recession calls for free market oriented policies and not for further pro-active policies.
Finally, Giovanni Bella contributes to the new Keynesian literature by showing that stable endogenous cycles can emerge as equilibrium solutions of the traditional IS-LM model. The application of the original Bogdanov-Takens theorem allows him to determine the regions of the parametric space where the model exhibits a global indeterminate solution, and a low-growth trapping region, characterized by a continuum of equilibrium trajectories in the proximity of a homoclinic bifurcation.
Important scholars from all around the world answered the call from Bernard Vallageas and François Facchini in order to discuss the heritage, for present day economics, of the Hayek/Keynes controversy, developed during the 1930s. The controversies between Hayek and Keynes began in 1929 when Hayek, presented his lectures on business cycles at the London School of Economics, invited by Lionel Robbins. The opposition appeared in their respective books Prices and Production, Monetary Theory and the Trade Cycle, A Treatise on Money and their comments on these books published in journals. The object of the conference was to analyze the controversies between Hayek and Hayekians on one side and Keynes and Keynesians on the other side.
This special issue hosts some of the contributions presented during that conference (Levy Orlik, Facchini, Sanz Bas and Morillo, Ferlito). However, together with the JRGE editors we decided to open the debate to a wider spectrum of scholars and the papers here published are the result of a call for papers on the topic. We are therefore glad to present here original contributions by Heinz D. Kurz, André Getzmann, Sebastian Lang, Klaus Spremann, Max Gillman and Giovanni Bella.
We open the special issue with the paper by Heinz D. Kurz, who brings new light on the debate on crises and cycles between Hayek, Keynes and Sraffa; in particular, prof. Kurz demonstrates how Sraffa, while strongly criticizing the Hayek’s perspective, at the same time did not support Keynes’ view. The theme will be reprised in my paper, published as the last one, in which the Sraffa/Hayek debate is analyzed with Lachmann’s eyes; the German economist, in looking for microfoundations for the capital analysis, accused Sraffa and the Cambridge School to develop a new neo-Ricardian approach, grounded on macroformalism and aggregation.
Noemi Levy Orlik, while discussing Hayek and the Austrian monetary school innovative ideas in terms of money in capitalist economies, embraces a new-Keyensian view according to which the main way to overcome economic activity fluctuations is to implement expansive fiscal policies, opposing wages cuts, and promoting financial market regulation. A conciliatory approach is instead proposed by François Facchini, who explains how the regulated capitalism is the cause of market instability and financial fragility: moral hazard encourages commercial banks to take risks and therefore post-2008 crisis policies went in the wrong direction.
David Sanz Bas and Juan Morillo come back to the main issue, the Hayek/Keynes debate, and demonstrate how the general idea according to which, after the debate on the Treatise on Money Hayek renounced to criticize The General Theory, is wrong. We need instead to accurately read post-1936 Hayek’s works to find how a wide criticism can be found.
André Getzmann, Sebastian Lang and Klaus Spremann try to combine Hayek’s and Keynes’ approaches looking at companies’ decisions to finance investments and at their agility to adjust their capital structure. They then study the relationship between capital structure to finance corporate production and shifts in aggregate demand. Their results provide evidence for Keynes’ General Theory from a firm level perspective: firms respond very fast to aggregate demand by adjusting capital and production structure correspondingly.
Max Gillman retrospectively look at how Hayek’s and Fisher’s idea on the Great Depression arose as opposed to Keynes’ interventionism. Through an interesting quantitative analysis, Gillman demonstrate that the present Great Recession calls for free market oriented policies and not for further pro-active policies.
Finally, Giovanni Bella contributes to the new Keynesian literature by showing that stable endogenous cycles can emerge as equilibrium solutions of the traditional IS-LM model. The application of the original Bogdanov-Takens theorem allows him to determine the regions of the parametric space where the model exhibits a global indeterminate solution, and a low-growth trapping region, characterized by a continuum of equilibrium trajectories in the proximity of a homoclinic bifurcation.
Research Interests:
Research Interests:
Poverty vs Social Mobility (with Benedict Weerasena), «StarBiz7», 20 July 2024, p. 8.
Research Interests:
Another BRIC(k) in the wall, «StarBiz7», 29 June 2024, p. 7.
Research Interests:
New Approach Needed for MSMEs, «StarBiz7», 1 June 2024, p. 8.
Research Interests:
Subsidy rationalisation and urban mobility, «New Straits Times», 24 May 2024, https://www.nst.com.my/business/insight/2024/05/1054676/subsidy-rationalisation-and-urban-mobility.
Research Interests:
Overcoming Economic Fragmentation for Progress, «Smart Investor», 384, 30 April 2024, pp. 56-58, https://smartinvestor.com.my/wp-content/uploads/2024/03/SI-Mar-Apr24-emag-NEW-v2.pdf.
Research Interests:
Making sense of ringgit woes (with Imran Shamsunahar), «StarBiz7», 2 March 2024, p. 15.
Research Interests:
Outlook 2024: Malaysia Behind Asean Neighbours, Needs To Up The Ante, «Business Today», 27 December 2023, https://www.businesstoday.com.my/2023/12/27/outlook-2024-malaysia-lags-behind-asean-neighbours-needs-to-up-the-ante/.
Research Interests:
Work on the little miracles, «StarBiz7», 16 December 2023, p. 12.
Research Interests:
Are Low Wages Determined By Low Productivity?, «Business Today», 6 December 2023, https://www.businesstoday.com.my/2023/12/06/are-low-wages-determined-by-low-productivity/.
Research Interests:
Freeing the currency system, «StarBiz7», 11 November 2023, p. 8.
Research Interests:
Rationalised spending the key element, «StarBiz7», 21 October 2023, p. 10.
Research Interests:
Market-friendly reforms a must, «StarBiz7», 16 September 2023, p. 10.
Research Interests:
NIMP2030 success hinges on effective reforms (with Benedict Weerasena), «StarBiz7», 9 September 2023, p. 7.
Research Interests:
While the new tax rates for tobacco and nicotine products have not yet been announced, from the communication received so far it seems that the new and amended SCT law is going to touch heated tobacco products and e-cigarettes too,... more
While the new tax rates for tobacco and nicotine products have not yet been announced, from the communication received so far it seems that the new and amended SCT law is going to touch heated tobacco products and e-cigarettes too, including the devices and not only the consumables.
Research Interests:
A lesson from US debt ceiling fight: Don’t leave budgets adrift in the sea of democratic politics, «Focus Malaysia», 29 May 2023,... more
A lesson from US debt ceiling fight: Don’t leave budgets adrift in the sea of democratic politics, «Focus Malaysia», 29 May 2023, https://focusmalaysia.my/a-lesson-from-us-debt-ceiling-fight-dont-leave-budgets-adrift-in-the-sea-of-democratic-politics/.
Research Interests:
Reshaping the debate around an ageing society (with Benedict Weerasena), «The Edge Malaysia», 24 April 2023, p. 47.
Research Interests:
Creative entrepreneurship vs technical education, «Malaysiakini», 16 April 2023, https://www.malaysiakini.com/letters/662358.
Research Interests:
Kutub Ekonomi Baru, Mata Uang BRICS, Timbangan Pakar (with Alfian Banjaransari), «Gatra», 12 April 2023, https://www.gatra.com/news-569691-kolom-kutub-ekonomi-baru-mata-uang-brics-timbangan-pakar.html.
Research Interests:
Penny From the Bloc: The Emergence of Alternative Currencies (with Alfian Banjaransari), «Business Today», 7 April 2023, https://www.businesstoday.com.my/2023/04/07/penny-from-the-bloc-the-emergence-of-alternative-currencies/.
Research Interests:
Ini Penjelasan Pakar terkait Krisis Silicon Valley Bank, «Gatra», 22 March 2023, https://www.gatra.com/news-568098-kolom-ini-penjelasan-pakar-terkait-krisis-silicon-valley-bank.html.
Research Interests:
Il collasso della Silicon Valley Bank e il ciclo economico, «Rubrics», 15 March 2003, https://www.rubrics.it/il-collasso-della-silicon-valley-bank-e-il-ciclo-economico/.
Research Interests:
The Silicon Valley Bank Collapse And The Business Cycle, «Business Today», 15 March 2023, https://www.businesstoday.com.my/2023/03/15/the-silicon-valley-bank-collapse-and-the-business-cycle/.
Research Interests:
With IPR, a better chance at alleviating hardcore poverty (with Benedict Weerasena), «Free Malaysia Today», 3 March 2023, https://www.freemalaysiatoday.com/category/opinion/2023/03/03/a-better-chance-at-success/.
Research Interests:
Prices, supply and demand: on the government’s ambition to control the economy, «Asia News Today», 6 February 2023, https://asianewstoday.com/prices-supply-and-demand-on-the-governments-ambition-to-control-the-economy/.
Research Interests:
“Rafizi, costs and prices”, «Focus Malaysia», 24 January 2023, https://focusmalaysia.my/rafizi-costs-and-prices/.
Research Interests:
Costs and Prices mechanism, «Asia News Today», 23 January 2023, https://asianewstoday.com/costs-and-prices-mechanism/.
Research Interests:
The intricate path toward targeted subsidies, «Focus Malaysia», 29 December 2022, https://focusmalaysia.my/the-intricate-path-toward-targeted-subsidies/.
Research Interests:
A director chair for the Malaysian economy, «Focus Malaysia», 28 November 2022, https://focusmalaysia.my/a-director-chair-for-the-malaysian-economy/.
Research Interests:
Can UMNO avoid the fate of the Italian Christian Democrats?, «Focus Malaysia», 23 November 2022, https://focusmalaysia.my/can-umno-avoid-the-fate-of-the-italian-christian-democrats/.
Research Interests:
Carmelo Ferlito and Alfian Banjaransari, Menyoal Kenaikan Harga BBM: Akankah Memicu Inflasi?, «Gatra», 24 September 2022, https://www.gatra.com/news-553225-ekonomi-kenaikan-bbm-pacu-inflasi-ini-kata-pakar.html.
Research Interests:
Struktur Pajak Tembakau Rumit, Efektivitas Peningkatan Pajak Dipertanyakan, «Gatra», 27 June 2022, https://www.gatra.com/news-546757-kolom-struktur-pajak-tembakau-rumit-efektivitas-peningkatan-pajak-dipertanyakan.html.
Research Interests:
Tackling inflation will be painful, «New Straits Times», 25 June 2022, https://www.nst.com.my/opinion/columnists/2022/06/808046/tackling-inflation-will-be-painful.
Research Interests:
Make VNP a Reality, «Property Rights Alliance», 20 May 2022, https://www.propertyrightsalliance.org/news/make-vnp-a-reality/.
Research Interests:
Populisme Tidak Pernah Baik untuk Ekonomi, «Bisnis», 27 April 2022, https://ekonomi.bisnis.com/read/20220427/9/1528168/populisme-tidak-pernah-baik-untuk-ekonomi.
Research Interests:
Carmelo Ferlito, Populisme Tak Pernah Baik untuk Ekonomi, "Gatra", 26 April 2022, https://www.gatra.com/news-542096-kolom-populisme-kebijakan-larangan-ekspor-sawit-ancaman-inflasi.html.
Research Interests:
Carmelo Ferlito, Govt must rethink tobacco policies that could cause more harm, "Free Malaysia Today", 19 February 2022,... more
Carmelo Ferlito, Govt must rethink tobacco policies that could cause more harm, "Free Malaysia Today", 19 February 2022, https://www.freemalaysiatoday.com/category/opinion/2022/02/19/govt-must-rethink-tobacco-policies-that-could-cause-more-harm/.
Research Interests:
John Hearn and Carmelo Ferlito, Inflation is not (just) a matter of supply chain disruptions, "Free Malaysia Today", 22 January 2022,... more
John Hearn and Carmelo Ferlito, Inflation is not (just) a matter of supply chain disruptions, "Free Malaysia Today", 22 January 2022, https://www.freemalaysiatoday.com/category/opinion/2022/01/22/inflation-is-not-just-a-matter-of-supply-chain-disruptions/.
Research Interests:
Reward smokers who want to quit, not punish them with taxes (with Adam Hoffer), «Free Malaysia Today», 22 November 2021,... more
Reward smokers who want to quit, not punish them with taxes (with Adam Hoffer), «Free Malaysia Today», 22 November 2021, https://www.freemalaysiatoday.com/category/opinion/2021/11/22/reward-smokers-who-want-to-quit-not-punish-them-with-taxes/.
Research Interests:
The pillars for a balanced tax reform, «Free Malaysia Today», 27 September 2021, https://www.freemalaysiatoday.com/category/opinion/2021/09/27/the-pillars-for-a-balanced-tax-reform/.
Research Interests:
Carmelo Ferlito, Siamo alla peggiore crisi economica dal 1929, "Rubrics", 31 December 2021, https://www.rubrics.it/siamo-alla-peggiore-crisi-economica-dal-1929/. La crisi post-Covid si determina nella caduta del PIL mondiale, con i... more
Carmelo Ferlito, Siamo alla peggiore crisi economica dal 1929, "Rubrics", 31 December 2021, https://www.rubrics.it/siamo-alla-peggiore-crisi-economica-dal-1929/.
La crisi post-Covid si determina nella caduta del PIL mondiale, con i poveri schiacciati e con il peggio che deve ancora venire: approfondiamo il perché (tra inflazione, stagflazione, disoccupazione e aumento dei prezzi). Probabilmente viaggiare diventerà un lusso per chi può permetterselo.
La crisi post-Covid si determina nella caduta del PIL mondiale, con i poveri schiacciati e con il peggio che deve ancora venire: approfondiamo il perché (tra inflazione, stagflazione, disoccupazione e aumento dei prezzi). Probabilmente viaggiare diventerà un lusso per chi può permetterselo.
Research Interests:
Final countdown: In support of a government of peace to face the war, "Focus Malaysia", 18 August 2021, https://focusmalaysia.my/final-countdown-in-support-of-a-government-of-peace-to-face-the-war/.
Research Interests:
No, production is not enough, «Free Malaysia Today», 25 July 2021, https://www.freemalaysiatoday.com/category/opinion/2021/07/25/no-production-is-not-enough/.
Research Interests:
Perkasa sistem imun tubuh dalam strategi melawan Covid-19, «Free Malaysia Today», 23 July 2021, https://www.freemalaysiatoday.com/category/bahasa/pandangan/2021/07/23/perkasa-sistem-imun-tubuh-dalam-strategi-melawan-covid-19/.
Research Interests:
Where is Malaysia’s GDP heading?, «Free Malaysia Today», 13 July 2021, https://www.freemalaysiatoday.com/category/opinion/2021/07/13/where-is-malaysias-gdp-heading/.
Research Interests:
Carmelo Ferlito, Recent trends in the Malaysian property market, «Property360Digest», 9, July 2021, pp. 6-10.
Research Interests:
Carmelo Ferlito, The post-Covid economic crisis, "The Malaysian Insight", 9 May 2021, https://www.themalaysianinsight.com/s/314664.
Research Interests:
Paolo Bellavite and Carmelo Ferlito, Vaccine yes, vaccination passport no, "Free Malaysia Today", 11 March 2021, https://www.freemalaysiatoday.com/category/opinion/2021/03/11/vaccine-yes-vaccination-passport-no/.
Research Interests:
Carmelo Ferlito and Benedict Weerasena, Parliament should convene to table 12th Malaysia Plan, "The Star", 11 March 2021, p. 13.
Research Interests:
A Chinese New Year Lesson for Malaysian Catholics, MarketEdu.org, 10 February 2021, https://marketedu.org/opinion/a-chinese-new-year-lesson-for-malaysian-catholics.
Research Interests:
A rational approach to Covid-19 policies, «Free Malaysia Today», 31 January 2021, https://www.freemalaysiatoday.com/category/highlight/2021/01/31/a-rational-approach-to-covid-19-policies/.
Research Interests:
10 July 2024: Empowering Market to Accelerate Action: Sustainability, Energy Innovation and Economic Growth, guest lecture held virtually on 10 July 2024 at Asia Pacific University of Technology and Innovation, Kuala Lumpur, Malaysia.... more
10 July 2024: Empowering Market to Accelerate Action: Sustainability, Energy Innovation and Economic Growth, guest lecture held virtually on 10 July 2024 at Asia Pacific University of Technology and Innovation, Kuala Lumpur, Malaysia.
Link: https://www.youtube.com/watch?v=8J_TTqNmqhg&t=2s
Link: https://www.youtube.com/watch?v=8J_TTqNmqhg&t=2s
Research Interests:
Video recording: https://youtu.be/wx99JL67sTU?si=x8iUVDg9DH34okhV 12 June 2024: Navigating Economic Cycles: Interactions Between Monetary and Fiscal Policies, a panel discussion part of the BNM Sasana Symposium 2024, held at BNM Sasana... more
Video recording: https://youtu.be/wx99JL67sTU?si=x8iUVDg9DH34okhV
12 June 2024: Navigating Economic Cycles: Interactions Between Monetary and Fiscal Policies, a panel discussion part of the BNM Sasana Symposium 2024, held at BNM Sasana Kijang in Kuala Lumpur on 12-13 June 2024. Panellists: Fraziali Ismail (Assistant Governor, Bank Negara Malaysia), Dr Nungsari Ahmad Radhi (Chairman, Malaysia Airports Holdings Berhad) and Dr Carmelo Ferlito (CEO, Center for Market Education); moderator: Prof Ozer Karagedikli (Asia School of Business).
12 June 2024: Navigating Economic Cycles: Interactions Between Monetary and Fiscal Policies, a panel discussion part of the BNM Sasana Symposium 2024, held at BNM Sasana Kijang in Kuala Lumpur on 12-13 June 2024. Panellists: Fraziali Ismail (Assistant Governor, Bank Negara Malaysia), Dr Nungsari Ahmad Radhi (Chairman, Malaysia Airports Holdings Berhad) and Dr Carmelo Ferlito (CEO, Center for Market Education); moderator: Prof Ozer Karagedikli (Asia School of Business).
Research Interests:
2 May 2024: Economic Update – The Ringgit Performance and Monetary Policy in Support of Investment, a talk delivered to the members of BeLuxCham and SwedCham on 2 May 2024 at Curious Kitchen, Kuala Lumpur, Malaysia.
Research Interests:
7 November 2023: Post-Budget: Property Outlook 2024, a presentation at the 2024 Budget Outlook organized by The PropTech Academy and held on 7 November 2023 at WORQ in Kuala Lumpur, Malaysia.
Research Interests:
Cities are spontaneous orders: the result of human action but not of human design; as such, they best serve their mission when they arise as the result of bottom-up and decentralized processes of interindividual actions, rather than the... more
Cities are spontaneous orders: the result of human action but not of human design; as such, they best serve their mission when they arise as the result of bottom-up and decentralized processes of interindividual actions, rather than the implementation of policymakers’ dreams.
At what extent the ageing process in Malaysia is an irreversible one? What is the action space for policy intervention at this regard? What is the best urban planning regulatory framework to allow urban planning to adapt to the changing scenario, rather than forcing it? As we will see, it becomes crucial demarcating more sharply between two different kinds of planning intervention – infrastructural and regulatory – and employing plans prevalently in the former case while utilising different instruments for the latter.
At what extent the ageing process in Malaysia is an irreversible one? What is the action space for policy intervention at this regard? What is the best urban planning regulatory framework to allow urban planning to adapt to the changing scenario, rather than forcing it? As we will see, it becomes crucial demarcating more sharply between two different kinds of planning intervention – infrastructural and regulatory – and employing plans prevalently in the former case while utilising different instruments for the latter.
Research Interests:
18 April 2023: Weakening Consumers’ and Producers’ Confidence, a presentation at the Prasetiya Mulya Economic and Business Outlook 2023, organized by Universitas Prasetiya Mulya, the Center for Market Education Indonesia and the Centre... more
18 April 2023: Weakening Consumers’ and Producers’ Confidence, a presentation at the Prasetiya Mulya Economic and Business Outlook 2023, organized by Universitas Prasetiya Mulya, the Center for Market Education Indonesia and the Centre for Strategic and International Studies and held on 18 April 2023 at the Prasetiya Mulya Campus in Tangerang, Indonesia.
Research Interests:
23 March 2023: Indirect Taxation in Budget 2023, a presentation at the AmCham Budget 2023 Briefing, organized by the American Chamber of Commerce in Malaysia and held on 23 March 2023 in Kuala Lumpur, Malaysia.
Research Interests:
6 December 2022: Navigating through the next economic downturn: Which reforms for the next Malaysia?, a presentation at the monthly meeting of the Trade Commissioners of the Delegation of the European Union in Malaysia, 6 December 2022,... more
6 December 2022: Navigating through the next economic downturn: Which reforms for the next Malaysia?, a presentation at the monthly meeting of the Trade Commissioners of the Delegation of the European Union in Malaysia, 6 December 2022, Naza Tower, Kuala Lumpur.
Research Interests:
1 December 2022: Nurturing Entrepreneurship to Fight Poverty, presentation at the webinar Eradicating Poverty Global Discourse: International Experiences, organized by Taylor’s University and held virtually on 1 December 2022. Panellists:... more
1 December 2022: Nurturing Entrepreneurship to Fight Poverty, presentation at the webinar Eradicating Poverty Global Discourse: International Experiences, organized by Taylor’s University and held virtually on 1 December 2022. Panellists: Datuk Sri Anis Yusal Yusoff (Institute of Ethnic Studies, National University of Malaysia – UKM), Professor Sanjoy Hazarika (Centre for Northeast Studies and Policy Research – C-NES, India), Dr Carmelo Ferlito (Center for Market Education, Malaysia). Opening Remarks: Prof Anindita Dasgupta (Taylor’s University, Malaysia). Moderator: Dr Wan Puspa Melati (Taylor’s University, Malaysia).
Research Interests:
Dr Carmelo Ferlito, CEO of the Center for Market Education (CME), was invited by the University of Nottingham Malaysia to present the contents of his latest book, "Assessing and Addressing Urban Poverty in Malaysia - Social Mobility... more
Dr Carmelo Ferlito, CEO of the Center for Market Education (CME), was invited by the University of Nottingham Malaysia to present the contents of his latest book, "Assessing and Addressing Urban Poverty in Malaysia - Social Mobility through Entrepreneurship" (Monolateral, 2022), which he co-authored with Benedict Weerasena, Research Director of Bait Al Amanah.
The guest lecture happened on 17 November 2022 at the University of Nottingham Malaysia - Master Campus located at the Chulan Tower in Kuala Lumpur, Malaysia.
Dr Ferlito was invited and hosted by Professor Dr Julia Roknifard.
Recording: https://www.youtube.com/watch?v=uw09MIwWW84.
The guest lecture happened on 17 November 2022 at the University of Nottingham Malaysia - Master Campus located at the Chulan Tower in Kuala Lumpur, Malaysia.
Dr Ferlito was invited and hosted by Professor Dr Julia Roknifard.
Recording: https://www.youtube.com/watch?v=uw09MIwWW84.
Research Interests:
6 October 2022: Book Launch, Assessing and Addressing Urban Poverty in Malaysia – Social Mobility through Entrepreneurship (Monolateral, 2022). Introductory remarks by H.E. Peter Van Acker, Ambassador-Designate of the Kingdom of Belgium... more
6 October 2022: Book Launch, Assessing and Addressing Urban Poverty in Malaysia – Social Mobility through Entrepreneurship (Monolateral, 2022). Introductory remarks by H.E. Peter Van Acker, Ambassador-Designate of the Kingdom of Belgium to Malaysia; keynote speech by Prof Abdul Razak Ahmad, founding director of Bait Al Amanah; speakers: Dr Carmelo Ferlito (CEO of the Center for Market Education) and Benedict Weerasena (Research Director at Bait Al Amanah), co-authors of the book. The event was held at the Residence of the Ambassador of Belgium to Malaysia in Kuala Lumpur, Malaysia.
Research Interests:
26 September 2022: Are Economic Populist Policies on the Rise? Examining the Malaysian Social Protection Framework, a panel discussion during the 7th IDEAS Liberalism Conference: In Search of Stability – Does Liberalism Provide an... more
26 September 2022: Are Economic Populist Policies on the Rise? Examining the Malaysian Social Protection Framework, a panel discussion during the 7th IDEAS Liberalism Conference: In Search of Stability – Does Liberalism Provide an Answer?, held at Pullman Hotel in Kuala Lumpur.
Research Interests:
Inflation: What Everybody Needs to Know.
A webinar organized by Students for Liberty Asia Pacific and held virtually on 26 October 2022 at 10am in Kuala Lumpur.
Recording: https://www.youtube.com/watch?v=Whe1b-P5zYw.
A webinar organized by Students for Liberty Asia Pacific and held virtually on 26 October 2022 at 10am in Kuala Lumpur.
Recording: https://www.youtube.com/watch?v=Whe1b-P5zYw.
Research Interests:
Link: https://www.youtube.com/watch?v=I0aiIScVZHY.
8 September 2022: What Inflation Is and What Is Not, a presentation at the Southeast Asia Summit 2022 organized by Dscoop and held in Kuala Lumpur (Colony Coworking) on 7-8 September 2022.
8 September 2022: What Inflation Is and What Is Not, a presentation at the Southeast Asia Summit 2022 organized by Dscoop and held in Kuala Lumpur (Colony Coworking) on 7-8 September 2022.
Research Interests:
11 July 2022: Growth, Innovation and Liberty, a presentation at the Policy Innovation Forum 2022, organized by the Tholos Foundation and held virtually in Bangkok on 11 July 2022.
Research Interests:
25 March 2022: The Science & Policy of Harm Reduction in Taiwan, a presentation at the seminar The Science & Policy of Harm Reducation Taiwan, organized by the Property Rights Alliance, Tholos Foundation, the Center for Market Education... more
25 March 2022: The Science & Policy of Harm Reduction in Taiwan, a presentation at the seminar The Science & Policy of Harm Reducation Taiwan, organized by the Property Rights Alliance, Tholos Foundation, the Center for Market Education and Pacific Alliance Institute, and held virtually on 25 March 2022. Speakers: Dr Colin Mehdehlson (Founding Chairman of the Australian Tobacco Harm Reduction Association), Clive Bates (Creator of Counterfactual Consulting and Former Director of Action on Smoking & Health), Prof Tzu-Hsuen Yuan (Department of Health & Welfare at the College of City Management at the University of Taipei), Prof Brad Rodu (Endowed Chair for Brown Cancer Center’s Tobacco Harm Reduction Wing at the University of Louisville), Prof Kai-Jen Chuang (Professor of Public Health at Taipei Medical University), Dr Carmelo Ferlito (CEO of the Center for Market Education), Michelle Minton (Senior Fellow at the Competitive Enterprise Institute), Prof Chee-Ruey Hsieh (Health Economist and Adjunct Professor at Feng Chia University), Yuya Watase (Chairman of the Pacific Alliance Institute and a researcher at Waseda University), Louis Houlbrooke (Campaigns Manager for New Zealand Taxpayers Union).
Research Interests:
7 January 2022: Reviewing Harm-Reduction Strategies: A Policy Framework, a presentation at the roundtable discussion “Post COVID-19 Effects on Public Health: Should We Consider Innovative Policies”, organized by Bait Al-Amanah and Pemandu... more
7 January 2022: Reviewing Harm-Reduction Strategies: A Policy Framework, a presentation at the roundtable discussion “Post COVID-19 Effects on Public Health: Should We Consider Innovative Policies”, organized by Bait Al-Amanah and Pemandu Associates; Element by Westin, Kuala Lumpur, 7 January 2022.
Research Interests:
10 December 2021: Malaysia’s Economic Focus – Challenges in International Trade, Tourism and Investment, a presentation at the “Dialogue with the Ambassador with the Ambassador of the Republic of Indonesia and Diplomatic Staffs of the... more
10 December 2021: Malaysia’s Economic Focus – Challenges in International Trade, Tourism and Investment, a presentation at the “Dialogue with the Ambassador with the Ambassador of the Republic of Indonesia and Diplomatic Staffs of the Indonesian Missions in Malaysia”, Kinta Riverfront Hotel & Suites, 10 December 2021, Ipoh, Perak, Malaysia.
Research Interests:
14 September 2021: Innovations, Development and Institutions, a presentation at the webinar The New Wave of Innovation Policies in Asia, official Presentation of the white paper International Best Practices for Tobacco and Nicotine Public... more
14 September 2021: Innovations, Development and Institutions, a presentation at the webinar The New Wave of Innovation Policies in Asia, official Presentation of the white paper International Best Practices for Tobacco and Nicotine Public Policy, organized by the Property Rights Alliance and by the Center for Market Education and held virtually in Kuala Lumpur on 14 September 2021. Keynote Speaker: Dato' Sri Idris Jala, Former Minister at the Malaysian Prime Minister Department (2009-2015) and President & Chairman of PEMANDU Associates Sdn. Bhd. Featuring: Dr. Ong Kian Ming, Former Deputy Minister of International Trade and Industry (Malaysia); Former MP Mineyuki Fukuda, Liberal Democratic Party (Japan); Prof. Adam Hoffer, Director of the Menard Family Initiative (USA); Dr. Artidiatun Adji, Faculty of Economics and Business Universitas Gadjah Mada Yogyakarta (Indonesia); Dr Carmelo Ferlito, CEO of the Center for Market Education (Malaysia); Yuya Watase, President of the Pacific Alliance Institute (Japan); and Prof. Illoong Kwon, Graduate School of Public Administration, Seoul National University (Korea).
Link: https://www.youtube.com/watch?v=Z_X-idPSpGg&t=1s
Link: https://www.youtube.com/watch?v=Z_X-idPSpGg&t=1s
Research Interests:
Recording: https://www.youtube.com/watch?v=ocNOGn6zZxI. The Reopening of our Lives in Malaysia, a presentation at the webinar The Economy Is Reopening. Should Your Sales Gallery Open Too?, organized by MHub, and held virtually in Kuala... more
Recording: https://www.youtube.com/watch?v=ocNOGn6zZxI.
The Reopening of our Lives in Malaysia, a presentation at the webinar The Economy Is Reopening. Should Your Sales Gallery Open Too?, organized by MHub, and held virtually in Kuala Lumpur on 3 September 2021. Panellists: Dr Swee Kheng Khor (Independent health policies specialist), Dr Carmelo Ferlito (CEO, Center for Market Education) and Wee Siong Quek (Co-Founder and CEO, MHub). Moderator: Jason Ding (Co-Founder, MHub).
The Reopening of our Lives in Malaysia, a presentation at the webinar The Economy Is Reopening. Should Your Sales Gallery Open Too?, organized by MHub, and held virtually in Kuala Lumpur on 3 September 2021. Panellists: Dr Swee Kheng Khor (Independent health policies specialist), Dr Carmelo Ferlito (CEO, Center for Market Education) and Wee Siong Quek (Co-Founder and CEO, MHub). Moderator: Jason Ding (Co-Founder, MHub).
Research Interests:
15 April 2021: Urban Poverty: Strategy and Solution Directions, a presentation at the webinar Re-Examining Urban Poverty, organized by the Embassy of Belgium in Kuala Lumpur, the Center for Market Education and Bait Al-Amanah, and held... more
15 April 2021: Urban Poverty: Strategy and Solution Directions, a presentation at the webinar Re-Examining Urban Poverty, organized by the Embassy of Belgium in Kuala Lumpur, the Center for Market Education and Bait Al-Amanah, and held virtually in Kuala Lumpur on 15 April 2021. Panellists: Prof Dr Fatimah Binti Kari (former Director of the Centre for Poverty and Development Studies (CPDS), Universiti Malaya), Wan Ya Shin (Research Manager, Institute for Democracy and Economic Affairs (IDEAS)), Prof Datuk Dr Denison Jayasooria (Honorary Professor at the Institute of Ethnic Studies (KITA), UKM), Dr Carmelo Ferlito (CEO, Center for Market Education). Moderator: Cellini Basri (Analyst, Bait Al-Amanah).
Research Interests:
6 April 2021: The Malaysian Economic Outlook 2021 & 2022, a panel discussion at the Malaysian Tax Conference 2021 – Rebuilding the Economy Together, organized by the Malaysian Institute of Accountants (MIA) and held virtually in Kuala... more
6 April 2021: The Malaysian Economic Outlook 2021 & 2022, a panel discussion at the Malaysian Tax Conference 2021 – Rebuilding the Economy Together, organized by the Malaysian Institute of Accountants (MIA) and held virtually in Kuala Lumpur on 6-7 April 2021. Panellists: Dr Carmelo Ferlito (Senior Fellow, Institute for Democracy and Economic Affairs (IDEAS), Firdaos Rosli (Head Economic Research, Malaysian Rating Corporation Berhad), Mohammad Reezal bin Ahmad (Deputy Chief Economist, Ministry of Finance). Moderator: Dr V. Sivabalasingam (Columnist, StarBiz).
Research Interests:
25 March 2021: Anticipating the recovery economic conditions in the pandemic era, a presentation for the Provalindo Webinar “Provalindo Insight: Review 2020 & Prospect 2021”, organized by Provalindo Nusa Property and held in the form of... more
25 March 2021: Anticipating the recovery economic conditions in the pandemic era, a presentation for the Provalindo Webinar “Provalindo Insight: Review 2020 & Prospect 2021”, organized by Provalindo Nusa Property and held in the form of webinar in Jakarta, Malaysia, 25 March 2021.
Audio recording: https://www.youtube.com/watch?v=_Q9Tqt3q-Lk&t=1767s.
Audio recording: https://www.youtube.com/watch?v=_Q9Tqt3q-Lk&t=1767s.
Research Interests:
4 March 2021, Anticipating Malaysia’s Future, a presentation for the BeLuxTalks series organized by BeLuxCham Malaysia and held in form of webinar in Kuala Lumpur, Malaysia, 4 March 2021. Audio recording:... more
4 March 2021, Anticipating Malaysia’s Future, a presentation for the BeLuxTalks series organized by BeLuxCham Malaysia and held in form of webinar in Kuala Lumpur, Malaysia, 4 March 2021.
Audio recording: https://www.youtube.com/watch?v=4zLovsAe2j8.
Audio recording: https://www.youtube.com/watch?v=4zLovsAe2j8.
Research Interests:
25 January 2021: A Hermeneutical Approach to Capital Theory, a RePEcT Talk organized by the Research Platform on Economic Thought (RePEcT), Istanbul, Turkey.
Research Interests:
30 November 2020: Is the Crisis of Economics a Crisis of Vision?, presentation at the History of Economic Thought Symposium organized by The Research Platform on Economic Thought (RePEcT) and held virtually in Istanbul, Turkey, 28-30... more
30 November 2020: Is the Crisis of Economics a Crisis of Vision?, presentation at the History of Economic Thought Symposium organized by The Research Platform on Economic Thought (RePEcT) and held virtually in Istanbul, Turkey, 28-30 November 2020.
Video recording: https://www.youtube.com/watch?v=AwBmvEZ08FE&t=9s.
Video recording: https://www.youtube.com/watch?v=AwBmvEZ08FE&t=9s.
Research Interests:
27 November 2020, Housing Forward: From Housing Crisis to Housing Stability, a talk delivered to the REHDA Housing Conference 2020 – Beyond the Pandemic – Reshaping Real Estate, organized by REHDA Institute in the form of webinar in Kuala... more
27 November 2020, Housing Forward: From Housing Crisis to Housing Stability, a talk delivered to the REHDA Housing Conference 2020 – Beyond the Pandemic – Reshaping Real Estate, organized by REHDA Institute in the form of webinar in Kuala Lumpur, Malaysia, 26-27 November 2020.
Audio recording: https://www.youtube.com/watch?v=68pPiRMoWhM&t=348s
Audio recording: https://www.youtube.com/watch?v=68pPiRMoWhM&t=348s
Research Interests:
28 November 2020, Are Homes Expensive in Malaysia?, a panel discussion organized by Pertubuhan Akitek Malaysia and held in form of webinar in Kuala Lumpur, Malaysia, 28 November 2020. Video recording:... more
28 November 2020, Are Homes Expensive in Malaysia?, a panel discussion organized by Pertubuhan Akitek Malaysia and held in form of webinar in Kuala Lumpur, Malaysia, 28 November 2020.
Video recording: https://www.youtube.com/watch?v=s0ehO8lT5JE&t=6s.
Video recording: https://www.youtube.com/watch?v=s0ehO8lT5JE&t=6s.
Research Interests:
25 November 2020, Will “Printing Money” Save Malaysia?, a panel discussion moderated by Prof Hans Genberg (Asia School of Business); panellists: Prof Dr Jomo Kwane Sundaram (Research Advisor, Khazanah Research Institute) and Dr Carmelo... more
25 November 2020, Will “Printing Money” Save Malaysia?, a panel discussion moderated by Prof Hans Genberg (Asia School of Business); panellists: Prof Dr Jomo Kwane Sundaram (Research Advisor, Khazanah Research Institute) and Dr Carmelo Ferlito (CEO, Center for Market Education and Senior Fellow, Institute for Democracy and Economic Affairs). The panel discussion was organized by the Institute for Research & Development of Policy (IRDP) and held online in Kuala Lumpur, Malaysia, 25 November 2020.
Video recording: https://www.youtube.com/watch?v=U6MQBRZ9AZ4.
Video recording: https://www.youtube.com/watch?v=U6MQBRZ9AZ4.
Research Interests:
24 November 2020, Real Estate in Indonesia: Macroeconomic Trends and Market Outlook, Expert Session at the REII Connect 2020 Conference organized by Real Estate Investment Indonesia (REII). The conference was held online from Jakarta,... more
24 November 2020, Real Estate in Indonesia: Macroeconomic Trends and Market Outlook, Expert Session at the REII Connect 2020 Conference organized by Real Estate Investment Indonesia (REII). The conference was held online from Jakarta, Indonesia, 24-25 November 2020.
Audio recording: https://www.youtube.com/watch?v=oiwUf55O7hE.
Audio recording: https://www.youtube.com/watch?v=oiwUf55O7hE.
Research Interests:
32. 7 November 2020, Budget 2021: Post Pandemic Recovery and Effectiveness of the Economic Stimulus, a panel discussion moderated by Laurence Todd (Research Director, Institute for Democracy and Economic Affairs, IDEAS); panellists: Dr... more
32. 7 November 2020, Budget 2021: Post Pandemic Recovery and Effectiveness of the Economic Stimulus, a panel discussion moderated by Laurence Todd (Research Director, Institute for Democracy and Economic Affairs, IDEAS); panellists: Dr Carmelo Ferlito (CEO, Center for Market Education and Senior Fellow, Institute for Democracy and Economic Affairs), Abdul Jalil Rasheed (former President and Group CEO, PNB), Dr Juhita Mohamad (Fellow, ISIS), Nelleita Omar (Research Director, The Centre). The panel discussion was part of the 5th IDEAS Liberalism Conference, held on line in Kuala Lumpur, Malaysia, 7 November 2020.
https://www.youtube.com/watch?v=iW5b_oyDPUM
https://www.youtube.com/watch?v=iW5b_oyDPUM
Research Interests:
29 September 2020, Can Malaysia Tax the Rich More Without Impeding Growth?, a panel discussion moderated by Yan Lim, CEO, iOli Communications Sdn Bhd / Co-Founder FEMX Malaysia Dr Carmelo Ferlito (CEO, Center for Market Education and... more
29 September 2020, Can Malaysia Tax the Rich More Without Impeding Growth?, a panel discussion moderated by Yan Lim, CEO, iOli Communications Sdn Bhd / Co-Founder FEMX Malaysia Dr Carmelo Ferlito (CEO, Center for Market Education and Senior Fellow, Institute for Democracy and Economic Affairs), Oo Huei Ying (Managing Director, SK iWealth Sdn Bhd) and Anand Raj (Partner, Competition Law & Antitrust (Co-Head), Tax Disputes & Controversy, Shearn Delamore & Co). The panel discussion was part of the ISI 2nd Malaysia Tax Policy Forum, organized by the International Strategy Institute, The Everly Hotel, Putrajaya, Malaysia, 29 September 2020.
Research Interests:
Audio recording: https://www.youtube.com/watch?v=bZqO-raLBeo. 15 September 2020, Affordability and Sustainability - Dual Challenges for Affordable Housing, a panel discussion moderated by Sr Michael Kong, President, Association of... more
Audio recording: https://www.youtube.com/watch?v=bZqO-raLBeo.
15 September 2020, Affordability and Sustainability - Dual Challenges for Affordable Housing, a panel discussion moderated by Sr Michael Kong, President, Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector, Malaysia. Panellists: Mr Jayaselan Navaratnam (Director-General, National Housing Department), Dr Suraya Ismail (Director of Research, Kazanah Research Institute), Mr Ishmael Ho (CEO, Ho Chin Soon Research Sdn Bhd) and Dr Carmelo Ferlito (CEO, Center for Market Education and Senior Fellow, Institute for Democracy and Economic Affairs). The panel discussion was part of the KSI 2020 National Housing and Property Summit, organized by the Kingsley Strategic Institute for Asia Pacific, Ritz-Carlton, Kuala Lumpur, Malaysia, 15 September 2020.
15 September 2020, Affordability and Sustainability - Dual Challenges for Affordable Housing, a panel discussion moderated by Sr Michael Kong, President, Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector, Malaysia. Panellists: Mr Jayaselan Navaratnam (Director-General, National Housing Department), Dr Suraya Ismail (Director of Research, Kazanah Research Institute), Mr Ishmael Ho (CEO, Ho Chin Soon Research Sdn Bhd) and Dr Carmelo Ferlito (CEO, Center for Market Education and Senior Fellow, Institute for Democracy and Economic Affairs). The panel discussion was part of the KSI 2020 National Housing and Property Summit, organized by the Kingsley Strategic Institute for Asia Pacific, Ritz-Carlton, Kuala Lumpur, Malaysia, 15 September 2020.
Research Interests:
Video recording link: https://www.youtube.com/watch?v=sMaZNJVw40Q&t=10s. A webinar organized by the Center for Market Education, Taylor's University and IDEAS. Title: Economics, History and the Great Enrichment. Date: 3... more
Video recording link: https://www.youtube.com/watch?v=sMaZNJVw40Q&t=10s.
A webinar organized by the Center for Market Education, Taylor's University and IDEAS.
Title: Economics, History and the Great Enrichment.
Date: 3 September 2020, 8.30pm Malaysia Time.
Speaker: Prof. Deirdre Nansen McCloskey, UIC Distinguished Professor of Economics and of History Emerita, University of Illinois at Chicago, USA (https://en.wikipedia.org/wiki/Deirdre_McCloskey).
Introductory remarks: Prof. Anindita Dasgupta, Associate Professor of Social History and Head of School, School of Liberal Arts & Sciences, at Taylor’s University, Malaysia.
Moderator: Dr Carmelo Ferlito, CEO of the Center for Market Education, Malaysia.
Description: The Great Enrichment 1800 to the present was not caused by investment or by exploitation, the usual suspects. It was caused by liberty and an accompanying change in attitudes towards the middle class—“innovism,” not “capitalism.” The “Chinese Model” of progress through tyranny is a foolish myth. Liberty is the ticket.
A webinar organized by the Center for Market Education, Taylor's University and IDEAS.
Title: Economics, History and the Great Enrichment.
Date: 3 September 2020, 8.30pm Malaysia Time.
Speaker: Prof. Deirdre Nansen McCloskey, UIC Distinguished Professor of Economics and of History Emerita, University of Illinois at Chicago, USA (https://en.wikipedia.org/wiki/Deirdre_McCloskey).
Introductory remarks: Prof. Anindita Dasgupta, Associate Professor of Social History and Head of School, School of Liberal Arts & Sciences, at Taylor’s University, Malaysia.
Moderator: Dr Carmelo Ferlito, CEO of the Center for Market Education, Malaysia.
Description: The Great Enrichment 1800 to the present was not caused by investment or by exploitation, the usual suspects. It was caused by liberty and an accompanying change in attitudes towards the middle class—“innovism,” not “capitalism.” The “Chinese Model” of progress through tyranny is a foolish myth. Liberty is the ticket.
Research Interests:
8 August 2020, Business resilience: Staying stronger for longer, a panel discussion at the AMEU Economics Summit 2020 – Economics After Tomorrow. Panellists: Dr Ong Kian Ming (Member of Parliament), Dr Carmelo Ferlito (CEO of the Center... more
8 August 2020, Business resilience: Staying stronger for longer, a panel discussion at the AMEU Economics Summit 2020 – Economics After Tomorrow. Panellists: Dr Ong Kian Ming (Member of Parliament), Dr Carmelo Ferlito (CEO of the Center for Market Education and Senior Fellow at the Institute for Democracy and Economic Affairs), Mr Rizal Nainy (SME Corp. Malaysia), Mr Sayanta Das (Foodpanda). Moderated by Freda Liu (BFM 89.9). The discussion was organized by the Association of Malaysian Economics Undergraduate (AMEU) in the form of webinar, Kuala Lumpur, Malaysia.
Research Interests:
Video recording: https://www.youtube.com/watch?v=CVnc-ZktbUQ&t=2s. "What is a City? Urban Planning and Spontaneous Order". A webinar organized by the Center for Market Education (www.marketedu.org), Provalindo Nusa and the... more
Video recording: https://www.youtube.com/watch?v=CVnc-ZktbUQ&t=2s.
"What is a City? Urban Planning and Spontaneous Order".
A webinar organized by the Center for Market Education (www.marketedu.org), Provalindo Nusa and the Institute for Democracy and Economic Affairs.
14 July 2020, 8pm. Via Zoom in Kuala Lumpur, Malaysia.
Speaker: Prof Sanford Ikeda, Purchase College of State University of New York (SUNY).
Introductory remarks: Mr Chandra Rambey, CEO of Provalindo Nusa.
Moderated by Dr Carmelo Ferlito, Director of CME.
"What is a City? Urban Planning and Spontaneous Order".
A webinar organized by the Center for Market Education (www.marketedu.org), Provalindo Nusa and the Institute for Democracy and Economic Affairs.
14 July 2020, 8pm. Via Zoom in Kuala Lumpur, Malaysia.
Speaker: Prof Sanford Ikeda, Purchase College of State University of New York (SUNY).
Introductory remarks: Mr Chandra Rambey, CEO of Provalindo Nusa.
Moderated by Dr Carmelo Ferlito, Director of CME.
Research Interests:
26 June 2020: What Does It Mean to Be an Entrepreneur?, a webinar organized by Asia-Pacific Students for Liberty via zoom platform.
https://www.youtube.com/watch?v=RVNC1BxlQjo.
https://www.youtube.com/watch?v=RVNC1BxlQjo.
Research Interests:
Teaching Economics in the 21st Century - with Prof Peter J. Boettke. https://www.youtube.com/watch?v=tA-Edim5wa0&t=1906s. A webinar with Prof Peter J. Boettke. Organized by the Center for Market Education (www.marketedu.org), the... more
Teaching Economics in the 21st Century - with Prof Peter J. Boettke.
https://www.youtube.com/watch?v=tA-Edim5wa0&t=1906s.
A webinar with Prof Peter J. Boettke.
Organized by the Center for Market Education (www.marketedu.org), the Institute for Democracy and Economic Affairs (IDEAS) and Taylor's University.
Moderated by Dr Carmelo Ferlito (CME Director).
11 June 2020, Petaling Jaya, Malaysia.
https://www.youtube.com/watch?v=tA-Edim5wa0&t=1906s.
A webinar with Prof Peter J. Boettke.
Organized by the Center for Market Education (www.marketedu.org), the Institute for Democracy and Economic Affairs (IDEAS) and Taylor's University.
Moderated by Dr Carmelo Ferlito (CME Director).
11 June 2020, Petaling Jaya, Malaysia.
Research Interests:
Expert Failure in Times of Crisis - Lessons from the Covid-19 Pandemic. https://www.youtube.com/watch?v=OECv6-_vypE&t=3401s. A webinar with Prof Roger Koppl. Organized by the Center for Market Education (www.marketedu.org) and the... more
Expert Failure in Times of Crisis - Lessons from the Covid-19 Pandemic.
https://www.youtube.com/watch?v=OECv6-_vypE&t=3401s.
A webinar with Prof Roger Koppl.
Organized by the Center for Market Education (www.marketedu.org) and the Institute for Democracy and Economic Affairs (IDEAS).
Moderated by Dr Carmelo Ferlito (CME Director).
19 May 2020, Petaling Jaya, Malaysia.
https://www.youtube.com/watch?v=OECv6-_vypE&t=3401s.
A webinar with Prof Roger Koppl.
Organized by the Center for Market Education (www.marketedu.org) and the Institute for Democracy and Economic Affairs (IDEAS).
Moderated by Dr Carmelo Ferlito (CME Director).
19 May 2020, Petaling Jaya, Malaysia.
Research Interests:
Oil Economics in Times of Crisis and Energy Transition. https://www.youtube.com/watch?v=NY7ThgzyRiQ&t=1861s. A Webinar with Prof. Renato Lima de Oliveira. Organized by the Center for Market Education (www.marketedu.org) and the... more
Oil Economics in Times of Crisis and Energy Transition.
https://www.youtube.com/watch?v=NY7ThgzyRiQ&t=1861s.
A Webinar with Prof. Renato Lima de Oliveira.
Organized by the Center for Market Education (www.marketedu.org) and the Institute for Democracy and Economic Affairs (IDEAS).
Moderated by Dr Carmelo Ferlito (CME Director).
16 April 2020, Kuala Lumpur, Malaysia.
https://www.youtube.com/watch?v=NY7ThgzyRiQ&t=1861s.
A Webinar with Prof. Renato Lima de Oliveira.
Organized by the Center for Market Education (www.marketedu.org) and the Institute for Democracy and Economic Affairs (IDEAS).
Moderated by Dr Carmelo Ferlito (CME Director).
16 April 2020, Kuala Lumpur, Malaysia.
Research Interests: Malaysia and Oil and gas
China, Southeast Asia and the Trade War - Opportunities and Threats. A webinar with Dr Christopher Lingle. Organized by the Center for Market Education (www.marketedu.org) and the Institute for Democracy and Economic Affairs... more
China, Southeast Asia and the Trade War - Opportunities and Threats.
A webinar with Dr Christopher Lingle.
Organized by the Center for Market Education (www.marketedu.org) and the Institute for Democracy and Economic Affairs (IDEAS).
Moderated by Dr Carmelo Ferlito (CME Director).
24 January 2020, Kuala Lumpur, Malaysia.
https://www.youtube.com/watch?v=DF4WA3EMtc4&t=30s.
A webinar with Dr Christopher Lingle.
Organized by the Center for Market Education (www.marketedu.org) and the Institute for Democracy and Economic Affairs (IDEAS).
Moderated by Dr Carmelo Ferlito (CME Director).
24 January 2020, Kuala Lumpur, Malaysia.
https://www.youtube.com/watch?v=DF4WA3EMtc4&t=30s.
Research Interests:
8 May 2020: Identifying and Filling the Gaps in Social Safety Nets. Lessons from the Covid-19 Pandemic, a panel discussion moderated by Sr Michael Geh (President, International Real Estate Federation (FIABCI), Malaysia Chapter).... more
8 May 2020: Identifying and Filling the Gaps in Social Safety Nets. Lessons from the Covid-19 Pandemic, a panel discussion moderated by Sr Michael Geh (President, International Real Estate Federation (FIABCI), Malaysia Chapter). Panellists: Kon Onn Sein (Managing Director, YKPM), Dr Carmelo Ferlito (Senior Fellow, Institute for Democracy and Economic Affairs), Balqais Yusoff (Head, Strategy Management, EPF). The panel discussion was organized by KSI The Strategic Institute for Asia Pacific in the form of webinar, Kuala Lumpur, Malaysia.
Recording here: https://www.youtube.com/watch?v=Ogng0liAH3k&t=3831s.
Recording here: https://www.youtube.com/watch?v=Ogng0liAH3k&t=3831s.
Research Interests:
7 April 2020: La teoria dei cicli economici di Joseph A. Schumpeter, guest lecture per il corso di Storia delle imprese dell’Università degli Studi di Verona (prof. Sergio Noto), Verona, Italy.... more
7 April 2020: La teoria dei cicli economici di Joseph A. Schumpeter, guest lecture per il corso di Storia delle imprese dell’Università degli Studi di Verona (prof. Sergio Noto), Verona, Italy.
https://www.youtube.com/watch?v=DXUEexq0ooc
https://www.youtube.com/watch?v=DXUEexq0ooc
Research Interests:
27 March 2020: Mitigating the Economic Downside of Covid-19, a panel discussion moderated by Tricia Yeoh (IDEAS Senior Fellow). Panellists: Dr Jayant Menon (Visiting Senior Fellow, Institute for Southeast Asian Studies), Christopher... more
27 March 2020: Mitigating the Economic Downside of Covid-19, a panel discussion moderated by Tricia Yeoh (IDEAS Senior Fellow). Panellists: Dr Jayant Menon (Visiting Senior Fellow, Institute for Southeast Asian Studies), Christopher Choong (Deputy Director of Research, Khazanah Research Institute), Dr Carmelo Ferlito (Senior Fellow, Institute for Democracy and Economic Affairs), Rachel Gong (Senior Research Associate, Khazanah Research Institute). The panel discussion was organized by the Institute for Democracy and Economic Affairs in the form of webinar, Kuala Lumpur, Malaysia. https://www.youtube.com/watch?v=LnBKACG9cgU&t=1723s
Research Interests:
26 March 2020: La teoria dell’imprenditore di Joseph A. Schumpeter, guest lecture per il corso di Storia delle imprese dell’Università degli Studi di Verona (prof. Sergio Noto), Verona, Italy,... more
26 March 2020: La teoria dell’imprenditore di Joseph A. Schumpeter, guest lecture per il corso di Storia delle imprese dell’Università degli Studi di Verona (prof. Sergio Noto), Verona, Italy, https://www.youtube.com/watch?v=YIRG21U_F2E&t=327s.
Research Interests:
21 November 2019: Rethink Rental & Housing Policy Assessment, a panel discussion moderated by Dato’ Soam Heng Choon (REHDA President). Panellists: Dr Carmelo Ferlito (Senior Fellow, Institute for Democracy and Economic Affairs, IDEAS), Dr... more
21 November 2019: Rethink Rental & Housing Policy Assessment, a panel discussion moderated by Dato’ Soam Heng Choon (REHDA President). Panellists: Dr Carmelo Ferlito (Senior Fellow, Institute for Democracy and Economic Affairs, IDEAS), Dr Ruhizal Roosli (Universiti Sains Malaysia) and Sr Ari Bin Adam (Deputy Director, Property Inventory Division, National Property Information Centre – NAPIC). The panel discussion was held during the Rehda Housing Conference 2019, organized by Rehda Institute at Sunway Resort & Spa, 21 November 2019, Subang Jaya, Malaysia.
Research Interests:
15 September 2019: Reducing Inequalities: Robin Hood vs. the Escalator, workshop at the We Empower 2019 seminar, organized by the Tamil Language Society, Block Y, Faculty of Engineering, Universiti Malaya, Kuala Lumpur, Malaysia.
Research Interests:
4 July 2019: Financial Literacy & Coping with the Rising Cost of Living, a panel discussion moderated by Datuk Seri Haji Mohamed Iqbal Rawther (Chairman, Economic Club of Kuala Lumpur). Discussants: Datuk Wira (Dr) Haji Ameer Ali Mydin... more
4 July 2019: Financial Literacy & Coping with the Rising Cost of Living, a panel discussion moderated by Datuk Seri Haji Mohamed Iqbal Rawther (Chairman, Economic Club of Kuala Lumpur). Discussants: Datuk Wira (Dr) Haji Ameer Ali Mydin (Managing Director, Mydin Mohamed Holdings Berhad), Dr Carmelo Ferlito (Senior Fellow, Institute for Democracy and Economic Affairs (IDEAS)) and Ms Jurizan Abdullah (Team Lead, Policy and Scheme Redesign Project, Strategy Management Department, Employees Provident Fund (EPF)). The panel discussion was held during the Malaysian Economic Summit 2019 – The Challenge for Malaysia: Shared Prosperity, Competitiveness & Economic Growth, organized by Kingsley Strategic Institute, 4 July 2019, Berjaya Times Square Hotel, Kuala Lumpur, Malaysia.
Research Interests:
The Affordable Housing Debate: Home Ownership or Rental – The Way Forward, a panel discussion moderated by Ms Au Foong Yee (Managing Director & Editor-In-Chief, Edge Property). Panelists: YB Haniza binti Mohamed Talha (Selangor State EXCO... more
The Affordable Housing Debate: Home Ownership or Rental – The Way Forward, a panel discussion moderated by Ms Au Foong Yee (Managing Director & Editor-In-Chief, Edge Property). Panelists: YB Haniza binti Mohamed Talha (Selangor State EXCO for Housing), Datuk Chang Kim Loong (Honorary Secretary General, National House Buyers Association) and Dr. Carmelo Ferlito (Senior Fellow, Institute for Democracy and Economic Affairs (IDEAS)). The panel discussion was held during the National Housing and Property Focus Summit 2019 - The New Property Landscape in a Changing Business Environment – Where Do We Go From Here?, organized by Kingsley Strategic Institute, 23 April 2019, Palace of the Golden Horses, Seri Kembangan, Malaysia.
Research Interests:
Panel Discussion: Housing the Nation, Empowering the Buyer • Comparison between Malaysia and other countries on the housing agenda in national budget; • Housing affordability: A dream or reality? Moderator: Tan Sri Datuk Eddy Chen Lok... more
Panel Discussion: Housing the Nation, Empowering the Buyer
• Comparison between Malaysia and other countries on the housing agenda in national budget;
• Housing affordability: A dream or reality?
Moderator: Tan Sri Datuk Eddy Chen Lok Loi (Chairman of PR1MA; REHDA Institute Trustee)
Panelists:
• Datuk Chung Chee Leong (President / CEO, CAGAMAS)
• Prof. Mahendhiran Nair (Vice President, Research & Development, Monash University Malaysia)
• Dr. Suraya Ismail (Director, Khazanah Research Institute, KRI)
• Dr. Carmelo Ferlito (Senior Fellow, Institute for Democracy and Economic Affairs, IDEAS)
• Comparison between Malaysia and other countries on the housing agenda in national budget;
• Housing affordability: A dream or reality?
Moderator: Tan Sri Datuk Eddy Chen Lok Loi (Chairman of PR1MA; REHDA Institute Trustee)
Panelists:
• Datuk Chung Chee Leong (President / CEO, CAGAMAS)
• Prof. Mahendhiran Nair (Vice President, Research & Development, Monash University Malaysia)
• Dr. Suraya Ismail (Director, Khazanah Research Institute, KRI)
• Dr. Carmelo Ferlito (Senior Fellow, Institute for Democracy and Economic Affairs, IDEAS)
Research Interests:
Ganeshwaran Kana, ‘Look for alternative material sources’, "The Star", 16 March 2022, p. B3.
Research Interests:
Nur Hanani Azman and Aufa Mardhiah, KL-Bangkok HSR may not be economically viable, "The Malaysian Reserve", 16 March 2022, pp. 1 and 4.
Research Interests:
Thomas Huong, Important competitive edge, "The Star", 10 March 2022, pp. B1-B2.
Research Interests:
Jananey Ramachandran, Price stabilisation fund not needed for now, say economists, "Free Malaysia Today", 10 March 2022,... more
Jananey Ramachandran, Price stabilisation fund not needed for now, say economists, "Free Malaysia Today", 10 March 2022, https://www.freemalaysiatoday.com/category/nation/2022/03/10/price-stabilisation-fund-not-needed-for-now-say-economists/.
Research Interests:
Akmal Hakim, Malaysians Give Thumbs Down To Cigarette & Vape Ban, "The Rakyat Post", 5 March 2022, https://www.therakyatpost.com/news/malaysia/2022/03/05/malaysians-give-thumbs-down-to-cigarette-vape-ban/.
Research Interests:
Nur Hanani Azman, Rising risk factors see BNM keep OPR at 1.75%, "The Malaysian Reserve", 4 March 2022, p. 9.
Research Interests:
Dhesegaan Bala Krishnan, Ban on tobacco and vape would be ineffective, "New Straits Times", 2 March 2022, pp. 1 and 6-7.
Research Interests:
'Ainin Wan Salleh, Health ministry, not eateries, should enforce smoking ban, says business group, "Free Malaysia Today", 26 February 2022,... more
'Ainin Wan Salleh, Health ministry, not eateries, should enforce smoking ban, says business group, "Free Malaysia Today", 26 February 2022, https://www.freemalaysiatoday.com/category/nation/2022/02/26/health-ministry-not-eateries-should-enforce-smoking-ban-says-business-group/.
Research Interests:
Thomas Huong, Timely aid for small businesses, "The Star", 22 February 2022, p. B1.
Research Interests:
Yiswaree Palansamy, Experts: Challenges ahead for Malaysia’s proposed tobacco sales ban to those born after 2005, "Malay Mail", 20 February 2022,... more
Yiswaree Palansamy, Experts: Challenges ahead for Malaysia’s proposed tobacco sales ban to those born after 2005, "Malay Mail", 20 February 2022, https://www.malaymail.com/news/malaysia/2022/02/20/experts-challenges-ahead-for-malaysias-proposed-tobacco-sales-ban-to-those/2042650.
Research Interests:
Thomas Huong, Earnings still key for investors, "The Star", 18 February 2022, pp. B1-B2.
Research Interests:
Nile Bowie, Malaysian economy grows, but pandemic risks remain, "Asia Times", 17 February 2022, https://asiatimes.com/2022/02/malaysian-economy-grows-but-pandemic-risks-remain/.
Research Interests:
Thomas Huong, Managing an ageing nation, "The Star", 15 February 2022, pp. B1-B2
Research Interests:
Nur Hanani Azman, Most housing still too expensive for Malaysians, BNM says, "The Malaysian Reserve", 14 February 2022, p. 2.
Research Interests:
Hakimie Amrie Hisamudin, Confusion over border reopening will hit business, govt told, "Free Malaysia Today", 10 February 2022,... more
Hakimie Amrie Hisamudin, Confusion over border reopening will hit business, govt told, "Free Malaysia Today", 10 February 2022, https://www.freemalaysiatoday.com/category/nation/2022/02/10/confusion-over-border-reopening-will-hit-business-govt-told/.
Research Interests:
Ganeshwaran Kana, Borders reopening the way to go, "The Star", 9 February 2022, pp. B1-B2.
Research Interests:
Wages Should Be Determined By The Market, Focus On Education And Labour Reforms, "Independent News Service", 9 February 2022,... more
Wages Should Be Determined By The Market, Focus On Education And Labour Reforms, "Independent News Service", 9 February 2022, https://www.theins.news/postview/969-wages-should-be-determined-by-the-market-focus-on-education-and-labour-reforms.
Research Interests:
CME: Minimum wage hike not a panacea, "The Sun Daily", 8 February 2022, p. 12.
Research Interests:
Rahimy Rahim, MTUC: Implement minimum wage as soon as possible, "The Star", 8 February 2022, p. 11.
Research Interests:
Anis Hazim, Refusal to raise minimum wage is illogical, says analyst, "The Malaysian Reserve", 8 February 2022, pp. 1 and 4.
Research Interests:
Danial Azhar, Don’t set no lockdown rule in stone, says ex-deputy minister, "The Malaysian Reserve", 8 February 2022,... more
Danial Azhar, Don’t set no lockdown rule in stone, says ex-deputy minister, "The Malaysian Reserve", 8 February 2022, https://www.freemalaysiatoday.com/category/nation/2022/02/08/no-lockdown-good-but-not-set-in-stone-says-ex-deputy-minister/.
Research Interests:
Focus on education, labour reforms instead of minimum wage, says think thank, "Free Malaysia Today", 7 February 2022,... more
Focus on education, labour reforms instead of minimum wage, says think thank, "Free Malaysia Today", 7 February 2022, https://www.freemalaysiatoday.com/category/nation/2022/02/07/focus-on-education-labour-reforms-instead-of-minimum-wage-says-think-thank/.
Research Interests:
Allow Market To Determine Wages, Focus On Education And Labour Reforms: CME, "Business Today", 7 February 2022, https://www.businesstoday.com.my/2022/02/07/allow-market-to-determine-wages-focus-on-education-and-labour-reforms-cme/.
Research Interests:
Jason Thomas, Lowering ceiling price of chicken may not have desired effect, says economist, "Free Malaysia Today", 2 February 2022,... more
Jason Thomas, Lowering ceiling price of chicken may not have desired effect, says economist, "Free Malaysia Today", 2 February 2022, https://www.freemalaysiatoday.com/category/nation/2022/02/02/lowering-ceiling-price-of-chicken-may-not-have-desired-effect-says-economist/.
Research Interests:
Eugene Mahalingam, Concerns over ESG ecosystem, "The Star", 1 February 2022, pp. B1-B2.
Research Interests:
Jason Thomas, Black market boom likely after cigarette ban, says economist, "Free Malaysia Today", 30 January 2022, https://www.freemalaysiatoday.com/category/nation/2022/01/30/black-market-boom-likely-after-cigarette-ban-says-economist/.
Research Interests:
Danial Azhar, Economist tells why GST is better for households, "Free Malaysia Today", 28 January 2022, https://www.freemalaysiatoday.com/category/nation/2022/01/28/gst-can-reduce-household-debt-says-economist/.
Research Interests:
Daniel Khoo, Rising interest rate fallout unlikely, "The Star", 22 January 2022, pp. B1, B8-B9.
Research Interests:
Nur Hanani Azman, BNM maintains OPR at 1.75% to support growth, "The Malaysian Reserve", 21 January 2022, p. 9.
Research Interests:
Daljit Dhesi, Economic themes to watch this year, "The Star", 19 January 2022, p. B3.
Research Interests:
Imran Ariff, Indonesia may soon match Malaysia in baiting investors, says economist, "Free Malaysia Today", 14 January 2022,... more
Imran Ariff, Indonesia may soon match Malaysia in baiting investors, says economist, "Free Malaysia Today", 14 January 2022, https://www.freemalaysiatoday.com/category/nation/2022/01/14/indonesia-may-soon-match-malaysia-in-baiting-investors-says-economist/.
Research Interests:
Ganeshwaran Kana, Moderate outlook seen this year, "The Star", 13 January 2022, pp. B1-B2.
Research Interests:
Eugene Mahalingam, November IPI records strong growth, "The Star", 11 January 2022, p. 2.
Research Interests:
Nur Hanani Azman, Most industries not ready for minimum wage hike, "The Malaysian Reserve", 7 January 2022, pp. 1 and 4.
Research Interests:
Reshna Reem Ganesan, Price controls detrimental to food security, says economist, "Free Malaysia Today", 7 January... more
Reshna Reem Ganesan, Price controls detrimental to food security, says economist, "Free Malaysia Today", 7 January 2022,https://www.freemalaysiatoday.com/category/nation/2022/01/07/price-controls-detrimental-to-food-security-says-economist/.
Research Interests:
Wong Pek Mei, Bosses urged to start fund to aid workers in emergencies, "Free Malaysia Today", 5 January 2022, https://www.freemalaysiatoday.com/category/nation/2022/01/05/bosses-urged-to-start-fund-to-aid-workers-in-emergencies/.
Research Interests:
Ainin W Salleh, Allocate RM400m in annual budget to tackle climate change, govt told, "Free Malaysia Today", 5 January 2022,... more
Ainin W Salleh, Allocate RM400m in annual budget to tackle climate change, govt told, "Free Malaysia Today", 5 January 2022, https://www.freemalaysiatoday.com/category/nation/2022/01/05/allocate-rm400m-in-annual-budget-to-tackle-climate-change-govt-told/.
Research Interests:
Reshna Reem Ganesan, Economists slam Putrajaya for substandard handling of floods, "Free Malaysia Today", 29 December 2021,... more
Reshna Reem Ganesan, Economists slam Putrajaya for substandard handling of floods, "Free Malaysia Today", 29 December 2021, https://www.freemalaysiatoday.com/category/nation/2021/12/29/economists-slam-putrajaya-for-substandard-handling-of-floods/.
Research Interests:
S Birruntha, Floods, Omicron risks dampen investor sentiment, "The Malaysian Reserve", 21 December 2021, p. 9.
Research Interests:
Yvonne Tan, Uneven recovery, "The Star", 18 December 2021, pp. B1, B8-B9.
Research Interests:
Robin Augustin, Digital banking licences a gamechanger for micro SMEs, "Free Malaysia Today", 16 December 2021, https://www.freemalaysiatoday.com/category/nation/2021/12/16/digital-banking-licenses-a-gamechanger-for-micro-smes/.
Research Interests:
Ian Khoo, Regulating cryptocurrencies a bad idea, say economists, "Free Malaysia Today", 16 December 2021, https://www.freemalaysiatoday.com/category/highlight/2021/12/16/regulating-cryptocurrencies-a-bad-idea-say-economists/.
Research Interests:
S Birruntha, Contain Omicron with proactive measures, not lockdowns, "The Malaysian Reserve", 9 December 2021, pp. 1 and 4.
Research Interests:
Wong Pek Mei, Foreign workers still crucial for Malaysia, says MEF, "Free Malaysia Today", 4 December 2021, https://www.freemalaysiatoday.com/category/nation/2021/12/04/foreign-workers-still-crucial-for-malaysia-says-mef/.
Research Interests:
Daljit Dhesi, Trade and investment the key, "The Star", 29 November 2021, pp. B1-B2.
Research Interests:
S Birruntha, Price control not a good measure to address rising living cost, "The Malaysian Reserve", 29 November 2021, p. 2.
Research Interests:
CME: Capping prices not way to address inflation pressures, "The Sun", 25 November 2021, p. 10.
Research Interests:
Ganeshwaran Kana, Curbing the rising prices of food items, "The Star", 25 November 2021, pp. B1 and B3.
Research Interests:
CME: What To Do With Rising Prices, "Independent News Service", 24 November 2021, https://theinsnews.com/postview/679-cme-what-to-do-with-rising-prices.
Research Interests:
What To Do With Rising Goods Prices?, "Business Today", 24 November 2021, https://www.businesstoday.com.my/2021/11/24/what-to-do-with-rising-goods-prices/.
Research Interests:
Research Interests:
Link: https://www.youtube.com/watch?v=YAiIRQzdVJY. 7 September 2022: Affordable Homes and Social Mobility – A Shift of Paradigm, presentation at the 11th International Real Estate Research Symposium (IRERS) organized by Institut... more
Link: https://www.youtube.com/watch?v=YAiIRQzdVJY.
7 September 2022: Affordable Homes and Social Mobility – A Shift of Paradigm, presentation at the 11th International Real Estate Research Symposium (IRERS) organized by Institut Penilaian Negara (INSPEN) and held in Kajang, Malaysia, on 6-8 September 2022.
7 September 2022: Affordable Homes and Social Mobility – A Shift of Paradigm, presentation at the 11th International Real Estate Research Symposium (IRERS) organized by Institut Penilaian Negara (INSPEN) and held in Kajang, Malaysia, on 6-8 September 2022.
Research Interests:
Link: https://www.youtube.com/watch?v=4F7Q43BGplw. How Schumpeterian is the Austrian School of Economics? A presentation by Dr Carmelo Ferlito (CEO of the Center for Market Education) at the International Symposium on Economic Thought... more
Link: https://www.youtube.com/watch?v=4F7Q43BGplw.
How Schumpeterian is the Austrian School of Economics?
A presentation by Dr Carmelo Ferlito (CEO of the Center for Market Education) at the International Symposium on Economic Thought organized by RePEcT.
Istanbul, Turkey, 22/5/2021.
Joseph A. Schumpeter (1883-1950) lived and worked in the same period like Ludwig von Mises (1881-1973), the most influential economist of the second generation of the Austrian School of Economics; two of their main books were published very closely (Schumpeter’s Theory of Economic Development in 1911 and Mises’s Theory of Money and Credit in 1912). Although younger, Friedrich A. von Hayek (1899-1992) produced his most important works in economics (on business cycles in particular) just before Schumpeter gave birth to his masterpieces from the Harvard period.
The three economists were all Austrians, but Schumpeter is usually (and properly) not listed among the members of the Austrian School. It has been object of academic debate if – and at which extent – Schumpeter’s theories present elements of “austrianism”, while at the same time his closeness to last generation of the German Historical School (Weber, Spiethoff…) has been deeply analysed.
However, it remains unexplored an alternative – and opposite – perspective: did Schumpeter influence the Austrian economists, and in particular those who came after Mises and Hayek. In this presentation, I will try to highlight theoretical elements that show a sort of Schumpeterian shadow over the Austrian School of Economics, with particular reference to entrepreneurship, the role of history and business cycles.
How Schumpeterian is the Austrian School of Economics?
A presentation by Dr Carmelo Ferlito (CEO of the Center for Market Education) at the International Symposium on Economic Thought organized by RePEcT.
Istanbul, Turkey, 22/5/2021.
Joseph A. Schumpeter (1883-1950) lived and worked in the same period like Ludwig von Mises (1881-1973), the most influential economist of the second generation of the Austrian School of Economics; two of their main books were published very closely (Schumpeter’s Theory of Economic Development in 1911 and Mises’s Theory of Money and Credit in 1912). Although younger, Friedrich A. von Hayek (1899-1992) produced his most important works in economics (on business cycles in particular) just before Schumpeter gave birth to his masterpieces from the Harvard period.
The three economists were all Austrians, but Schumpeter is usually (and properly) not listed among the members of the Austrian School. It has been object of academic debate if – and at which extent – Schumpeter’s theories present elements of “austrianism”, while at the same time his closeness to last generation of the German Historical School (Weber, Spiethoff…) has been deeply analysed.
However, it remains unexplored an alternative – and opposite – perspective: did Schumpeter influence the Austrian economists, and in particular those who came after Mises and Hayek. In this presentation, I will try to highlight theoretical elements that show a sort of Schumpeterian shadow over the Austrian School of Economics, with particular reference to entrepreneurship, the role of history and business cycles.
Research Interests:
12 December 2019: Is Economic Theory Historically Conditioned? Verstehen as a link between theory and history, presentation at the 1st Colloquium on Economics Education: “Issues in Contemporary Economics Education”, organized by the... more
12 December 2019: Is Economic Theory Historically Conditioned? Verstehen as a link between theory and history, presentation at the 1st Colloquium on Economics Education: “Issues in Contemporary Economics Education”, organized by the Center for Market Education and the Institute for Democracy and Economic Affairs, 11-12 December 2019, The Saujana Hotel, Shah Alam, Malaysia.
With the progress of formalism, Economic History and History of Economic Thought are gradually disappearing from academic economics curricula. However, up to not so long ago, a good knowledge of economic history and, furthermore, of the evolution of the so-called economic doctrines was considered an important pre-requisite in the formation of an economist.
It has not to be forgotten that Schumpeter (1954), at the end of his career, recognized economic history as his first-choice support tool. More importantly, back to the last quarter of XIX century, the Methodenstreit between Menger and Schmoller – one of the first methodological battles within the discipline – revolved around the possibility for economics to be a science distinct from history.
The methodological debate on the relationship between history and economics moved into the XX century and only in the last few decades it gradually faded, in connection with the diminishing interest for methodological issues within the profession. The position expressed by the German Historical School represented one of the two extreme positions: economics can exist only as economic history, as collection and narration of events from the past. The opposite side of the spectrum claimed that economics can be fully built as an a-priori science, independently from historical observation. While Menger never embraced such extreme apriorism, this position is often attributed to Ludwig von Mises (though scholars such as Lavoie and Storr tried to reinterpret, with success, Mises’s apriorism). An interesting middle-way approach was introduced by the last exponent of the German Historical School, Arthur Spiethoff, friend and mentor to Schumpeter, when he advocated the building of an anschauuliche theorie, based at the same time on historical observation and the isolation of the peculiar features of an economic period, bringing to the identification of real types – as opposed to Weber’s ideal types – and economic styles.
I see the publication of Lachmann (1971) as a breakthrough moment for the evolution of this debate. By calling for a hermenetical turn in economics and the reprise of the Weberian focus on the category of verstehen, Lachmann was the man behind the emergence of economics as a science of meaning. In the way in which Lavoie – and later Storr – tried to reshape Mises’s Euclidean vision, interpretation becomes the bridge between history and theory: economists build theory by interpreting facts constituting the historical evolution of reality.
Embracing the hermeneutical turn advocated by Lachmann, thus, the dichotomy between history and theory can be resolved into a complementarity generated by interpretative processes. Therefore, I argue that the debate in favour of pluralism in economics can be enriched by trying to rebuild economics on hermeneutical foundations. The first benefit to be achieved would be a reconciliation between theory and history.
With the progress of formalism, Economic History and History of Economic Thought are gradually disappearing from academic economics curricula. However, up to not so long ago, a good knowledge of economic history and, furthermore, of the evolution of the so-called economic doctrines was considered an important pre-requisite in the formation of an economist.
It has not to be forgotten that Schumpeter (1954), at the end of his career, recognized economic history as his first-choice support tool. More importantly, back to the last quarter of XIX century, the Methodenstreit between Menger and Schmoller – one of the first methodological battles within the discipline – revolved around the possibility for economics to be a science distinct from history.
The methodological debate on the relationship between history and economics moved into the XX century and only in the last few decades it gradually faded, in connection with the diminishing interest for methodological issues within the profession. The position expressed by the German Historical School represented one of the two extreme positions: economics can exist only as economic history, as collection and narration of events from the past. The opposite side of the spectrum claimed that economics can be fully built as an a-priori science, independently from historical observation. While Menger never embraced such extreme apriorism, this position is often attributed to Ludwig von Mises (though scholars such as Lavoie and Storr tried to reinterpret, with success, Mises’s apriorism). An interesting middle-way approach was introduced by the last exponent of the German Historical School, Arthur Spiethoff, friend and mentor to Schumpeter, when he advocated the building of an anschauuliche theorie, based at the same time on historical observation and the isolation of the peculiar features of an economic period, bringing to the identification of real types – as opposed to Weber’s ideal types – and economic styles.
I see the publication of Lachmann (1971) as a breakthrough moment for the evolution of this debate. By calling for a hermenetical turn in economics and the reprise of the Weberian focus on the category of verstehen, Lachmann was the man behind the emergence of economics as a science of meaning. In the way in which Lavoie – and later Storr – tried to reshape Mises’s Euclidean vision, interpretation becomes the bridge between history and theory: economists build theory by interpreting facts constituting the historical evolution of reality.
Embracing the hermeneutical turn advocated by Lachmann, thus, the dichotomy between history and theory can be resolved into a complementarity generated by interpretative processes. Therefore, I argue that the debate in favour of pluralism in economics can be enriched by trying to rebuild economics on hermeneutical foundations. The first benefit to be achieved would be a reconciliation between theory and history.
Research Interests:
11 December 2019: Introductory remarks, presentation at the 1st Colloquium on Economics Education: “Issues in Contemporary Economics Education”, organized by the Center for Market Education and the Institute for Democracy and Economic... more
11 December 2019: Introductory remarks, presentation at the 1st Colloquium on Economics Education: “Issues in Contemporary Economics Education”, organized by the Center for Market Education and the Institute for Democracy and Economic Affairs, 11-12 December 2019, The Saujana Hotel, Shah Alam, Malaysia.
Research Interests:
23. 24 July 2019: Affordable Housing and the NHP: A Critical Perspective, presentation delivered at the Comfori Affordable Housing Conference 2019, Istana Hotel Kuala Lumpur City Center, Kuala Lumpur, Malaysia.
Research Interests:
According to Mark Thornton, we could be very close to another major economic crisis. Ten years have passed from the so-called Great Recession and Thornton's prediction confirms my view according to which business fluctuations are... more
According to Mark Thornton, we could be very close to another major economic crisis. Ten years have passed from the so-called Great Recession and Thornton's prediction confirms my view according to which business fluctuations are pervasive, and the crisis that emerged in the Western world in 2007 is just the latest and most evident manifestation of such dynamics. I have expressed the idea that business cycles are unavoidable by developing the doctrine of the natural cycle. In the present paper I used that framework in order to describe the evolution of the Malaysian property market in the last decade in the context of the general development of the national economy. In fact, it seems that this evolution presents many features of the cyclical dynamic that brought about the Great Recession after a ten year delay.
World Economics Association (WEA) Conferences, No. 2 2018, The 2008 Economic Crisis Ten Years On, 15th October to 30th November, 2018.
World Economics Association (WEA) Conferences, No. 2 2018, The 2008 Economic Crisis Ten Years On, 15th October to 30th November, 2018.
Research Interests:
Speaking of Böhm-Bawerk’s theory of interest and period of production, Schumpeter argues that these are just “two elements in a comprehensive model of the economic process, the roots of which may be discerned in Ricardo and which... more
Speaking of Böhm-Bawerk’s theory of interest and period of production, Schumpeter argues that these are just “two elements in a comprehensive model of the economic process, the roots of which may be discerned in Ricardo and which parallels that of Marx” (1954, p. 846). Leaving aside the theory of value (on which it is impossible to find authors as far apart as Ricardo and Marx, on the one hand, and Böhm-Bawerk, on the other), it remains to be seen whether, or the extent to which, Schumpeter’s statement holds at least with regard to the theory of capital (as distinct from the theory of interest) and to its crucial concept of (the higher productivity of) time-consuming methods of production. If one focuses exclusively on this theory and concept, one can realize that these “roots” can be noticed not only in Ricardo but also in other classical authors in so far as they shared, or tried to improve, the theory of capital inherited from their leader: Adam Smith. In this sense Böhm-Bawerk’s theory may be viewed as a link not only between the classical and the Austrian theory of capital but also as a condition for the further developments of this theory carried out in our times by John Hicks, on the one hand, and by the Austrian economists of recent generation, on the other.
This paper is accordingly divided in two Parts. Part I will be focused on the similarities (and dissimilarities) between Adam Smith (as leader of the classical theory of capital), Böhm-Bawerk (as leader of the corresponding Austrian theory) and Hicks (as leader of the derived neo-Austrian approach to this theory). Part II, on the other hand, will be focused on the dissimilarities (and similarities) between Böhm-Bawerk and the following Austrian authors who eventually turned the theory of capital and of its principal agent, the capitalist, inherited from the classics into the theory of entrepreneurship and of its exclusive agent, the entrepreneur.
Reasons of space will prevent us from dwelling on all the converging or conflicting contributions by different scholars in this multi-directional development of the theory. But whether or not discussed in this paper, all these contributions seem to support the idea that the theory of capital is like a single building who may look very different depending on the angle from which the observer looks at it.
This paper is accordingly divided in two Parts. Part I will be focused on the similarities (and dissimilarities) between Adam Smith (as leader of the classical theory of capital), Böhm-Bawerk (as leader of the corresponding Austrian theory) and Hicks (as leader of the derived neo-Austrian approach to this theory). Part II, on the other hand, will be focused on the dissimilarities (and similarities) between Böhm-Bawerk and the following Austrian authors who eventually turned the theory of capital and of its principal agent, the capitalist, inherited from the classics into the theory of entrepreneurship and of its exclusive agent, the entrepreneur.
Reasons of space will prevent us from dwelling on all the converging or conflicting contributions by different scholars in this multi-directional development of the theory. But whether or not discussed in this paper, all these contributions seem to support the idea that the theory of capital is like a single building who may look very different depending on the angle from which the observer looks at it.
Research Interests:
The present paper aim to develop the Austrian Theory of Business Cycle in order to conclude that economic fluctuations are unavoidable. The conventional version of Austrian business cycle theory focuses on a temporary imbalance between... more
The present paper aim to develop the Austrian Theory of Business Cycle in order to conclude that economic fluctuations are unavoidable. The conventional version of Austrian business cycle theory focuses on a temporary imbalance between natural and monetary rates of interest. When, because of the role of monetary authorities in defining the monetary rate, the two values are in a situation of imbalance, the resulting expansion stage is followed by a recession. On the other hand, if instead the expansive phase arises without any interference by monetary authorities but through re-adaptation of the productive structure to a modified structure of temporal preferences, a period of sustainable growth begins that will not be followed by a crisis. The purpose of this essay is to demonstrate, on the other hand, that because of profit-expectations and the combined action of Schumpeterian elements (imitations-speculations and the ‘creation of money’ by banks), even a so-called ‘sustainable’ boom will be affected by a liquidation and settling crisis. What distinguishes the latter situation from the conventional case of imbalance between monetary and natural rates is not the onset or otherwise of a crisis but, rather, its intensity and duration. We will define as natural an economic cycle characterised by a stage of expansion considered to be ‘sustainable’ in the Austrian theory but followed by an inevitable readjustment crisis. In conclusion we will try to link our theoretical conclusions with the crisis emerged in the Western world in 2007, to test the explanatory power of our theoretical framework.
Research Interests:
While in the early 1930s Keynes and Hayek were the major figures in a heated academic debate about money and capital, in which Keynes also and especially involved the Italian Piero Sraffa, it might seem at first sight that the Austrian... more
While in the early 1930s Keynes and Hayek were the major figures in a heated academic debate about money and capital, in which Keynes also and especially involved the Italian Piero Sraffa, it might seem at first sight that the Austrian economist set aside an organic demolition of the ideas expressed in 1936 by his rival in the General Theory. Hayek himself, in the future, would regret not having devoted an organic work to criticising the new Keynesian theories. However, as demonstrated in Sanz Bas (2011), although it is not possible to find a debate such as the one on the Treatise on Money, Hayek’s subsequent works do include timely and reasoned criticisms as regards the main conclusions of the new Cambridge macroeconomics.
But the ‘Austrian knight’ of a new Vienna-Cambridge debate, in the subsequent decades, was the German economist Ludwig M. Lachmann (1906-1990), a student of Hayek at LSE during the 1930s and later a professor in Johannesburg and New York. Lachmann was one of the protagonists of the Austrian revival after 1974 and the founding leader of the ‘hermeneutic stream’, opposed by the Rothbardian stream.
Lachmann, defending Keynes’s subjectivism and expectation theory, revived the Vienna-Cambridge controversy, criticising not Keynes but his followers, in particular the ‘new’ Cambridge School, developed by Joan Robinson and Piero Sraffa. Lachmann’s life sight was to build a new economics paradigm, centred on the idea of market process, expectations and kaleidic society (Shackle); in order to do so he developed a deep attack toward the new Cambridge macroeconomics mainstream, arising from World War II ashes during the 1950s and 1960s. His polemic toward the ‘modern’ macroeconomics can be read in all his books and papers, but it is particularly evident in Lachmann (1973, 1986a).
His preferred targets were Sraffa and Joan Robinson, ‘guilty’, according to Lachmann, to overcome Keynes’s subjectivism and to develop a new Neo-Ricardian approach. The resulting macroeconomics is accused to be excessively formalist, ignoring the microfoundations that are at the very root of human action and choice.
But Lachmann’s attack was not only an epistemological one. He intensively tried to demolish all the pillars of the Cambridge macroeconomics: capital as aggregate, long run equilibrium, the absence of innovation and technological change and the conception of rate of profit. His starting point was an economics based on human expectations as the only possible source of human actions. A source, however, never at rest, and continuously influenced by technological change and changing information.
In conclusion, we will see how to extend the traditional Austrian theory of business cycle, taking in account Lachmann’s insight about expectations and technological change. We will try to demonstrate that, under such perspective, economic fluctuations are inevitable, even if the boom arises in the way that Austrian terminology labels ‘sustainable’. We will define natural cycle the cycle characterized by a liquidation crisis after a ‘sustainable’ boom.
But the ‘Austrian knight’ of a new Vienna-Cambridge debate, in the subsequent decades, was the German economist Ludwig M. Lachmann (1906-1990), a student of Hayek at LSE during the 1930s and later a professor in Johannesburg and New York. Lachmann was one of the protagonists of the Austrian revival after 1974 and the founding leader of the ‘hermeneutic stream’, opposed by the Rothbardian stream.
Lachmann, defending Keynes’s subjectivism and expectation theory, revived the Vienna-Cambridge controversy, criticising not Keynes but his followers, in particular the ‘new’ Cambridge School, developed by Joan Robinson and Piero Sraffa. Lachmann’s life sight was to build a new economics paradigm, centred on the idea of market process, expectations and kaleidic society (Shackle); in order to do so he developed a deep attack toward the new Cambridge macroeconomics mainstream, arising from World War II ashes during the 1950s and 1960s. His polemic toward the ‘modern’ macroeconomics can be read in all his books and papers, but it is particularly evident in Lachmann (1973, 1986a).
His preferred targets were Sraffa and Joan Robinson, ‘guilty’, according to Lachmann, to overcome Keynes’s subjectivism and to develop a new Neo-Ricardian approach. The resulting macroeconomics is accused to be excessively formalist, ignoring the microfoundations that are at the very root of human action and choice.
But Lachmann’s attack was not only an epistemological one. He intensively tried to demolish all the pillars of the Cambridge macroeconomics: capital as aggregate, long run equilibrium, the absence of innovation and technological change and the conception of rate of profit. His starting point was an economics based on human expectations as the only possible source of human actions. A source, however, never at rest, and continuously influenced by technological change and changing information.
In conclusion, we will see how to extend the traditional Austrian theory of business cycle, taking in account Lachmann’s insight about expectations and technological change. We will try to demonstrate that, under such perspective, economic fluctuations are inevitable, even if the boom arises in the way that Austrian terminology labels ‘sustainable’. We will define natural cycle the cycle characterized by a liquidation crisis after a ‘sustainable’ boom.
Research Interests: Austrian Economics, Innovation statistics, Business Cycle Analysis, Hayek, Keynesian Economics, and 14 moreFriedrich Hayek, Microfoundations, Schumpeter, Expectations, Sraffian economics, Neo-Ricardians, Austrian School of Economics, Business Cycles, Sraffian Theory, Joseph Schumpeter, Piero Sraffa, Ricardian Economics, Friederich A. Hayek, and Ludwig Lachmann
Research Interests:
1. Covid 19 dan Kondisi Ekonomi Dunia 1.1 Covid 19 dan Munculnya Krisis Ekonomi Dunia: Sebuah Pengantar. 1.2. Dampak Kebijakan Lockdown Terhadap Kondisi Ekonomi Dunia. 1.3. Efek Pandemi Terhadap Sektor Agrikultur Dunia. 2. Kondisi Ekonomi... more
1. Covid 19 dan Kondisi Ekonomi Dunia
1.1 Covid 19 dan Munculnya Krisis Ekonomi Dunia: Sebuah
Pengantar.
1.2. Dampak Kebijakan Lockdown Terhadap Kondisi Ekonomi
Dunia.
1.3. Efek Pandemi Terhadap Sektor Agrikultur Dunia.
2. Kondisi Ekonomi Indonesia dalam Pandemi COVID 19
2.1. Kasus COVID 19 di Indonesia.
2.2. Pertumbuhan Ekonomi Indonesia di Kala Pandemi Covid-19.
2.3. Dampak Sosial dari Kebijakan Lockdown/PSBB.
2.4. Berbagai Paket Kebijakan Stimulus
2.5. Berapa Lama Pandemi Akan Bertahan?
2.6. An exit strategy.
2.7. Kesimpulan Pemikiran.
3. Efek Covid 19 dan kebijakan Lockdown/PSBB terhadap Pasar
Properti Indonesia.
4. Kesimpulan.
1.1 Covid 19 dan Munculnya Krisis Ekonomi Dunia: Sebuah
Pengantar.
1.2. Dampak Kebijakan Lockdown Terhadap Kondisi Ekonomi
Dunia.
1.3. Efek Pandemi Terhadap Sektor Agrikultur Dunia.
2. Kondisi Ekonomi Indonesia dalam Pandemi COVID 19
2.1. Kasus COVID 19 di Indonesia.
2.2. Pertumbuhan Ekonomi Indonesia di Kala Pandemi Covid-19.
2.3. Dampak Sosial dari Kebijakan Lockdown/PSBB.
2.4. Berbagai Paket Kebijakan Stimulus
2.5. Berapa Lama Pandemi Akan Bertahan?
2.6. An exit strategy.
2.7. Kesimpulan Pemikiran.
3. Efek Covid 19 dan kebijakan Lockdown/PSBB terhadap Pasar
Properti Indonesia.
4. Kesimpulan.
Research Interests:
A study about the poultry supply chain in Malaysia, the emergence of Covid-19 and the disruptions in the supply chain caused by the lockdown.
Research Interests:
While we recognize that the different lockdowns have played a role in slowing the spread of Covid-19 in Southeast Asia, the strictness of the measures in place cannot serve as an explanation for a low level of deaths or cases per se. A... more
While we recognize that the different lockdowns have played a role in slowing the spread of Covid-19 in Southeast Asia, the strictness of the measures in place cannot serve as an explanation for a low level of deaths or cases per se.
A qualitative analysis on the containing measures applied in Thailand, Vietnam and Hong Kong would be extremely helpful for recognizing the elements that made a difference, such as an early action or targeted isolations.
Similarly, it has to be noted that, while USA and Western Europe together have a population comparable to the one of Southeast Asia (in size), the spread and the mortality in the two areas have been extremely different, with the first block accounting for 85% of the deaths and the second one for 0.68%. More elements, such as the latitude (weather) and the demographic should be seriously taken into account.
A qualitative analysis on the containing measures applied in Thailand, Vietnam and Hong Kong would be extremely helpful for recognizing the elements that made a difference, such as an early action or targeted isolations.
Similarly, it has to be noted that, while USA and Western Europe together have a population comparable to the one of Southeast Asia (in size), the spread and the mortality in the two areas have been extremely different, with the first block accounting for 85% of the deaths and the second one for 0.68%. More elements, such as the latitude (weather) and the demographic should be seriously taken into account.
Research Interests:
“Egli fu forse il primo economista che abbia avuto una teoria della crisi” – Un salto indietro nella storia. Carmelo Ferlito ci accompagna nell’opera “La guerra capitalista”.
Research Interests:
Review of MATUS POSVANC, The Evolutionary Invisible Hand. The Problem of Rational Decision-Making and Social Ordering over Time, Cham, Palgrave McMillan, 2021, «Cosmos+Taxis. Studies in Emergent Order and Organization», 10, 3+4, 2022, pp.... more
Review of MATUS POSVANC, The Evolutionary Invisible Hand. The Problem of Rational Decision-Making and Social Ordering over Time, Cham, Palgrave McMillan, 2021, «Cosmos+Taxis. Studies in Emergent Order and Organization», 10, 3+4, 2022, pp. 86-93.