{
  "title": "Book Review: The Data Detective by Tim Harford – IMF F&D",
  "sourceUrl": "https://www.imf.org/en/publications/fandd/issues/2021/03/book-review-power-of-creative-destruction-aghion-antonin-bunel",
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  "summary": "The IMF’s Andrew Berg reviews the Power of Creative Destruction: Economic Upheaval and the Wealth of Nations by Philippe Aghion, Céline Antonin, and Simon Bunel.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Reviewer: ANDREW BERG, deputy director, IMF Institute for Capacity Development.\n- Publication: F&D Magazine, Growing Pains; March 2021.\n- Read time indicator: Less than a minute(0 words) Read.\n- Reviewed book: The Power of Creative Destruction: Economic Upheaval and the Wealth of Nations by Philippe Aghion, Céline Antonin, and Simon Bunel.\n- Book details as presented: Belknap Press, Cambridge, MA, 2021, 400 pp., $35.00."
    },
    {
      "heading": "Core arguments and framing",
      "content": "- The dominant neoclassical paradigm leaves a “black box” labelled “total factor productivity” that governs how inputs become output.\n- The authors' research program opens that black box through the lens of “creative destruction,” in the tradition of Joseph Schumpeter.\n- Growth is driven by entrepreneurs who innovate, creating new goods and raising productivity while destroying existing jobs and firms.\n- The paradigm emphasizes:\n  - Export markets rewarding the most innovative firms.\n  - Imports and foreign direct investment bringing new ideas and competitive pressure.\n  - Vibrant financial markets supplying capital to successful new firms.\n  - A green technological revolution as the appropriate response to climate change.\n- On inequality: Much inequality is presented as a necessary or even desirable price for incentivizing innovation.\n- On recent history: Sustained productivity growth has increased well-being since the industrial revolution, and growth in China, India, and other developing economies has contributed to a fall in global inequality."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Governments should:\n  - Protect patents.\n  - Avoid excessive taxation.\n  - Insure the losers from the destructive part of creative destruction.\n  - Accompany flexible labor markets with “active” labor market policies to help people find new jobs.\n  - Support basic research.\n  - Avoid being co-opted by yesterday’s innovators trying to entrench their position, which is easier in a democracy."
    },
    {
      "heading": "Open questions and caveats highlighted by the reviewer",
      "content": "- Are “flexitarian” labor market policies truly adequate to address the losers from creative destruction?\n- Is China facing a “middle-income trap” of failed transition to innovation-led growth, due in part to an imbalance between the state, the market, and civil society, as the book suggests?\n- The book aims to point readers in a direction rather than answer every question; metaphors (e.g., “invisible hand” vs. “creative destruction”) shape how policy and problems are understood.\n\nPublished in F&D Magazine, March 2021.\n\n---\n\n Content in this bundle\n\n- آلام متزايدة\n  - آلام متزايدة (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - آلام متزايدة (PDF){rel=\"external\" type=\"application/pdf\"}\n- 书评 - 创造性破坏的力量：经济动荡与国家财富 - 金融与发展 - 国际货币基金组织季刊 -2021年3月号·第58卷\n  - 书评 - 创造性破坏的力量：经济动荡与国家财富 - 金融与发展 - 国际货币基金组织季刊 -2021年3月号·第58卷 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 书评 - 创造性破坏的力量：经济动荡与国家财富 - 金融与发展 - 国际货币基金组织季刊 -2021年3月号·第58卷 (PDF){rel=\"external\" type=\"application/pdf\"}\n- Book Review: The Power of Creative Destruction – IMF F&D\n  - Book Review: The Power of Creative Destruction – IMF F&D (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Book Review: The Power of Creative Destruction – IMF F&D (PDF){rel=\"external\" type=\"application/pdf\"}\n- Notes de lecture : les affres de la croissance\n  - Notes de lecture : les affres de la croissance (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Notes de lecture : les affres de la croissance (PDF){rel=\"external\" type=\"application/pdf\"}\n- Книжное обозрение – Финансы и развитие – март 2021 года\n  - Книжное обозрение – Финансы и развитие – март 2021 года (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Книжное обозрение – Финансы и развитие – март 2021 года (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/fandd/issues/2021/03/book-review-power-of-creative-destruction-aghion-antonin-bunel"
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    "Authors: ANDREW BERG",
    "Published: March 1, 2021",
    "Reviewer: ANDREW BERG, deputy director, IMF Institute for Capacity Development.",
    "Publication: F&D Magazine, Growing Pains; March 2021.",
    "Read time indicator: Less than a minute(0 words) Read.",
    "Reviewed book: The Power of Creative Destruction: Economic Upheaval and the Wealth of Nations by Philippe Aghion, Céline Antonin, and Simon Bunel.",
    "Book details as presented: Belknap Press, Cambridge, MA, 2021, 400 pp., $35.00.",
    "The dominant neoclassical paradigm leaves a “black box” labelled “total factor productivity” that governs how inputs become output.",
    "The authors' research program opens that black box through the lens of “creative destruction,” in the tradition of Joseph Schumpeter.",
    "Growth is driven by entrepreneurs who innovate, creating new goods and raising productivity while destroying existing jobs and firms.",
    "The paradigm emphasizes:",
    "On inequality: Much inequality is presented as a necessary or even desirable price for incentivizing innovation.",
    "On recent history: Sustained productivity growth has increased well-being since the industrial revolution, and growth in China, India, and other developing economies has contributed to a fall in global inequality.",
    "Governments should:",
    "Are “flexitarian” labor market policies truly adequate to address the losers from creative destruction?",
    "Is China facing a “middle-income trap” of failed transition to innovation-led growth, due in part to an imbalance between the state, the market, and civil society, as the book suggests?",
    "The book aims to point readers in a direction rather than answer every question; metaphors (e.g., “invisible hand” vs. “creative destruction”) shape how policy and problems are understood.",
    "**آلام متزايدة**",
    "**书评 - 创造性破坏的力量：经济动荡与国家财富 - 金融与发展 - 国际货币基金组织季刊 -2021年3月号·第58卷**",
    "**Book Review: The Power of Creative Destruction – IMF F&D**",
    "**Notes de lecture : les affres de la croissance**",
    "**Книжное обозрение – Финансы и развитие – март 2021 года**"
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