Building an Olive-Shaped Society: Economic Growth, Income Distribution and Public Policies in China. By CICC Research, CICC Global Institute Publisher, Springer 2025

This book, authored by CICC Research and the CICC Global Institute, analyzes China's ambitious goal of transitioning its income distribution structure from a "pyramid shape" (with a large population at the low-income end) to an "olive shape" (characterized by a large, stable middle-income group and small high and low-income groups). This strategic shift is imperative for the new stage of China's development, which requires balancing growth and equity amid significant internal and external changes. The volume first details the current state of China's income and wealth distribution, noting a significant increase in the Gini coefficient of wealth along with economic development since the 1978 reform and opening-up. It explores the primary sources of income disparity, including urban–rural, regional, and intergenerational disparities. Crucially, the book analyzes the limitations of the current redistribution mechanisms, noting the insufficient effects of fiscal redistribution due to the high share of the government sector in primary distribution and the regressive nature of some indirect taxes like VAT. Finally, it proposes a comprehensive policy roadmap, including reforms related to technological progress and the digital economy, external and internal adjustments to address demographic challenges (like revising the retirement age), and exploring paths for public charity with Chinese characteristics. Keywords. Olive-Shaped Society; Income Distribution; China Economic Growth; Public Policies in China; Gini Coefficient; Wealth Inequality; Fiscal Redistribution; Urban–Rural Disparity. JEL. D31; H23; J11; O53; P35

Why fiscal and Phillips Curve theories of inflation are not working

During the 2016-17 bull market in the US investors have been subjected to two main market scares – the possibility of near term inflation and the threat of an imminent recession, both spelling the end of the business cycle expansion. This paper examines first two commonly cited theories of inflation: the fiscal theory of the price level, and the Phillips curve (or output gap). Each is a form of reduced form analysis that omits any reference to the underlying monetary causes of inflation. I show that both in the US and more broadly across the OECD money and credit growth remain subdued. Since inflation is ultimately a monetary phenomenon, no sharp upswing in inflation can occur without a sustained period of faster money and credit growth. Second, the paper reviews briefly the basis for an extended business cycle expansion. The shape of the yield curve, money growth and the health of private sector balance sheets imply there is currently no basis for predicting an imminent recession. This justifies the view that the current expansion will continue for several more years with low inflation. Keywords. Fiscal theory of the price level; Phillips curve; Inflation; Monetary growth. JEL. E62; H54; O40

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Conference Notes on the 2025 International Conference on Economic Literature and Knowledge Management (ICELKM 2025).

The International Conference on Economic Literature and Knowledge Management (ICELKM 2025), held in London from November 3–6, 2025, offered an unparalleled platform for scholars, librarians, information scientists, and policy analysts concerned with the organization, curation, and dissemination of economic knowledge. With the publication of a comprehensive Abstract Book and Proceedings Book, ICELKM 2025 provided an extensive record of innovations in bibliographic methodologies, research evaluation, database development, and digital infrastructure for economic scholarship. These Conference Notes synthesize the major contributions of ICELKM 2025, emphasizing bibliometric trends, research organization, metadata curation, and the role of economic literature in guiding policy and academic research. Given the focus of Journal of Economics Bibliography, particular attention is given to systematic approaches for literature classification, knowledge mapping, and the integration of digital technologies in economic research dissemination. Keywords. Economic knowledge; Database development; Knowledge management; Economic research dissemination. Fiscal Redistribution. JEL. A10; A20; C88; O30; Y10

Government finance and the demand for Money: The relation between taxation and the acceptability of fiat money

Requiring taxes to be paid in domestic money provides a valuable characteristic for a state’s money. In the case of a state’s fiat money, it is the foundation for money demand and hence to the development of a financial system built around state money. Except for relatively highly taxed countries, where taxes may encourage tax avoidance and holding bank deposits, the level of taxation is a positive factor boosting financial development. Granger causality tests for 65 countries over the past half-century test the relationship between money and government finance. Except for the low-income countries, where there are only five with adequate data, the causal relationship between taxation and money demand is generally supported in the 60 countries making up the three higher income groups. Keywords. Taxation; Financial development; Money demand; Emerging markets. JEL. O11; O23; E51; E63

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Socio-cultural evolution, institutionalized dispositions, and rational expressive behavior

This paper explores the possibility of grounding human behavior in a social space and characterizing it as a rational expressive, norm-guided behavior based on institutionalized dispositions under bounded rationality. For this purpose, we first review critically the four major theories of cultural evolution, namely, Adam Smith's theory of moral sentiments, Veblen's theory of leisure class, and Bourdieu's theory of habitus and distinction, in order to abstract the common core that provides a basis on which to build a theory of rational expressive behavior under the constraints of economic factors, information flow, social sanctions, and psychological satisfaction. In particular, the paper addresses the following questions: (1) how preferences turn into institutionalized dispositions through habituation, (2) how a socio-economic order evolves as a product of institutionalized dispositions, cultural capital of life-styles, expressive symbolism, and social norms, (3) how social want emerges as a convoluted want reconstituted of social facts of life-styles and desire for upper status identification, (5) how is the behavior based on this want related to the bounded rationality in problem solving. Our inquiry will show that human behavior embedded in a socio-cultural context can be characterized as rational behavior seeking symbolic profits defined by the social want satisfying capacity of choice objects, and that such rational behavior is the source of predictable behavior that can serve as a medium of cultural evolution. Keywords. Institutionalization; Common normative values; Dispositions; Evolution; Expressive behavior; Symbolic profit; Social want; Lifestyles; Emulation and avoidance; Bounded rationality. JEL. Z13; B52; B25

Analyzing economic growth: What role for public investment?

This paper discusses the role of public investment in the determination of output growth from different theoretical and empirical points of view. The light is shed on the factors that allegedly explain the success and/or the failure of public investment policies in enhancing productivity and supporting GDP, based on a review of empirical evidence in advanced and developing economies. The downstream objective is to provide decision makers with a set of general rules-of-thumb that are likely to help them improve the macroeconomic returns of public investment. The latter are found to be significantly influenced by efficiency and profitability-based selectivity of investment projects. Countries with a relatively low capital-labor ratio usually have higher public and private capital profitability, while the public-private investment substitutability increases the likelihood of crowding out effects. The paper also gives hints on the possible existence of an optimal growth-maximizing level of public investment. Keywords. GDP growth; Public investment; Productivity; Private investment; Development. JEL. E62; H54; O40

A proven solution for Lebanon’s economic crisis: A currency board

Lebanon is currently facing a financial crisis marked by rising inflation rates and a black-market exchange rate that is significantly diverging day-by-day from the official exchange rate. In this paper, the author dives into Lebanon’s financial history and what actions undertaken by the government since the civil war have led to this crisis. After a thorough examination of the current economy, the author compares Lebanon’s present day financial crisis to the one faced by Bulgaria in the 1990s and concludes that the implementation of a currency board is a viable solution for restoring the strength of the Lebanese pound and ushering in financial stability. Keywords. Currency board, Lebanon, Bulgaria. JEL. E58; G01; L25

A Tax, Trade and Investment Perspective in the EU and beyond. By Irma Johanna Mosquera Valderrama, Frederik Heitmüller, Julien Chaisse, & Allison Christians (Eds.), Springer 2025

This book provides a critical, interdisciplinary examination of the common governance challenges arising from the intertwined areas of international tax, trade, and investment law. The global economy's interconnected nature means that national policy choices across these three realms are a "bewildering mix" of conflicts and constraints, forcing every cross-border decision to navigate overlapping regulatory regimes. The volume explores how the confluence of interdependence and incompatibility among tax, trade, and investment institutions constantly produces conflict and renegotiation regarding international cooperation. It emphasizes that current transnational institution building reflects historical geopolitical and socioeconomic distinctions, with dominant trends often influenced by highly developed countries. Key topics include the shifting power to tax from the national to the international level, the role of the European Union in harmonizing legislation (e.g., the EU Standard of Tax Good Governance), and current reforms such as the OECD's BEPS project. Ultimately, the book aims to enhance interdisciplinary exchange and analyze how the convergence of these legal areas shapes global economic development and nation-state competition. Keywords. Global Governance Redefinition; International Tax Law; BEPS; International Trade and Investment Law; European Union (EU) Policy; Governance; Developing Countries; Socio-Economic Regions. JEL. F13; F21; H26; K33; P52