Economic Research Forum (ERF)

Klaus Schmidt-Hebbel

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Klaus Schmidt-Hebbel
Catholic University, Chile

Klaus Schmidt-Hebbel is Professor at the Economics Institute of the Pontificia Universidad Católica de Chile. He was OECD Chief Economist and Head of the Economics Department. His research focuses on Development Economics, International Economics and Macroeconomics. He received his PhD. in Economics from the Massachusetts Institute of Technology.

Content by this Author

Fiscal rules: how to reduce pro-cyclical public spending

Fiscal pro-cyclicality is a defining trait of many MENA countries and other emerging economies: public spending typically rises in good times and falls in bad times. This column reports research on the effectiveness of fiscal rules in countering this widespread tendency. The evidence from 120 countries over a 30-year period indicates that rules on government expenditure can reduce the pro-cyclicality of public spending by around 40% on average.

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Labour demand and informal employment in Egypt’s manufacturing sector

Egypt’s manufacturing sector faces a dual challenge of weak job creation and persistent informality. Drawing on survey evidence on business behaviour and labour market dynamics, this column explains why job creation is limited and informal work remains such an integral part of how firms organise production. The generation of more formal jobs requires a comprehensive policy approach, one that goes beyond enforcement of labour regulations to reshape the economic environment in which firms and workers make decisions.

Challenges of conflict and industrial policy for development

How effective is industrial policy as a tool for long-term economic growth and development? Against the backdrop of the conflict currently engulfing the Middle East, North Africa, Afghanistan and Pakistan (MENAAP), a new report argues that while industrial policies are widely used across the region, they can only address market failures and foster growth when they are aligned with country capabilities, implemented with accountability and backed by capable institutions.

The green transition in MENA economies: challenges and policy pathways

The economies of the Middle East and North Africa are at a critical turning point. Global decarbonisation pressures, energy market volatility and technological transformation are increasingly challenging hydrocarbon-based growth models. This column argues that the green transition is not only an environmental necessity but also a strategic economic imperative.




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