And the IMF Said, Let There Be Data, and There Was Data: Private Capital Stocks in the Eastern Bloc · Econ Journal Watch : national accounts, investment and capital stock dataset, public capital stock, public investment, International Monetary Fund

From two graduates of the Suffolk University PhD program in Economics

And the IMF Said, Let There Be Data, and There Was Data: Private Capital Stocks in the Eastern Bloc

Abstract

The International Monetary Fund has recently published a dataset on public and private capital stocks for 170 countries from 1960–2015 using the perpetual inventory methodology. Following a reckless assumption, opaquely imposed, the dataset likely overstates levels of private investment as a percentage of total investment in former Eastern bloc countries, and thereby likely overstates their private capital stocks. This comment explores the nature and implications of the assumption, and suggests that, in light of the problem, the scope of the IMF project be significantly diminished to address the issue.

Read more here (PDF). 

Neoliberalism is not a failure but a starting point

What happens when you go overboard and criticize free trade and open markets without any sound basis in history? You look mostly like a fool. Protectionism never works no matter how Hamiltonian you make it look. James Surowiecki takes apart the Chang counterfactual.

At the same time, though, Bad Samaritans is not ultimately convincing, particularly when it comes to the solutions it proffers. In part, that’s because Chang’s definition of what matters in an economy is strangely narrow, focused almost entirely on some Platonic notion of the “nation” rather than on the people who actually live in it. There are few businessmen, few workers, and almost no consumers in Bad Samaritans: Individuals appear mainly as factors in a nation’s productive enterprises. Now, in one respect, this is not surprising: Macroeconomists write about macroeconomies, and the nation-state remains, even in the age of globalization, a fundamental economic unit. But Chang’s resolutely statist vision of the world necessarily leads him to under­estimate the costs and overrate the benefits of protectionism.

Meanwhile, some of us should take a cue from the estimable Russ Nelson. There's a reason America's the freest country on earth.