Journal of Economics and Political Economy

Systematically investigating the high interest rates of emerging countries

Sun, 04 Jan 2026 00:00:00 +0000

This work aims to investigate interest rates in emerging markets by examining the primary characteristics associated with their high levels in these countries, particularly in Brazil. To this end, a systematic literature review was conducted, encompassing all articles published between 1985 and 2025. Given Brazil's public debate expressed in discussion papers and opinions in the media, a documentary research study on the causes, effects, and remedies for interest rates in the country is also carried out. The results indicate that the increase in studies on interest rates in emerging markets follows the greater relevance of these countries in the global economy, with the most prevalent primary topic being the effects of monetary policy. In the case of Brazil, despite apparent divergences, economists from different schools of thought frequently agree on the role of fiscal policy in interest rates, its negative impacts on investment, and possible solutions such as debt de-indexation and control of public spending. These findings are useful for the scientific literature investigating monetary policy by mapping the work and key evidence in this dense subfield of economics, and for policymakers and other market participants by synthesizing the main opinions on high interest rates that make up the Brazilian public debate.

Balancing public and private enforcement in EU Competition Law: Access to evidence, leniency, and the right to compensation

Dannie WAELBROECK — Sun, 04 Jan 2026 00:00:00 +0000

This article examines the evolving normative order of the European Union in the field of competition law, focusing on the interplay between public enforcement by competition authorities and private damages claims before national courts. Building on the jurisprudence of the Court of Justice of the European Union (CJEU), the paper highlights the recognition of a right to compensation for any natural or legal person harmed by infringements of Articles 101 and 102 TFEU, irrespective of contractual relationships or prior administrative findings. Central to this discussion is the tension between ensuring effective access to evidence for claimants and safeguarding the attractiveness of leniency programmes, which remain vital tools for uncovering cartels. The analysis explores landmark cases such as Courage and Crehan, Manfredi, Pfleiderer, and Donau Chemie, which collectively shaped the principles of effectiveness, equivalence, and transparency in private enforcement. The article further assesses Directive 2014/104/EU, which seeks to harmonize disclosure rules across Member States while preventing overcompensation and preserving incentives for voluntary cooperation. Particular attention is given to the Commission’s restrictive stance on access to leniency-related documents under Regulation No 1049/2001 and the judicial pushback against blanket refusals of disclosure. By situating these developments within broader debates on collective redress, proportionality, and discretionary remedialism, the paper argues that the EU legal framework must strike a delicate balance: enabling victims to obtain full compensation without undermining public enforcement mechanisms. Ultimately, the study underscores the need for coherent, case‑by‑case judicial approaches that reconcile transparency, deterrence, and the integrity of competition law enforcement.

Keywords. Competition; Access to information; Damages; Effectiveness; Litigation.

JEL. K21; K41; L49.

Foreign debt and economic development in developing countries: Dynamics, challenges, and socioeconomic implications

Tiwari A. RAMACHANDRA — Sun, 04 Jan 2026 00:00:00 +0000

Foreign debt has long been regarded as both a catalyst for economic growth and a source of vulnerability for developing countries. This article explores the multifaceted role of external borrowing in shaping economic development, highlighting its impact on investment, balance of payments, and social welfare. Drawing on definitions from international institutions such as the IMF, World Bank, and the United Nations, the study clarifies the conceptual framework of debt as both a stock and flow variable, emphasizing its dual nature as a financial instrument and a liability. The analysis categorizes loans by maturity, guarantees, and creditor type, distinguishing between bilateral, multilateral, and commercial sources of finance. The paper examines theoretical models such as the two-gap approach, which underscores the necessity of foreign capital to bridge savings-investment and export-import imbalances. Empirical evidence suggests that while external borrowing can accelerate capital formation and industrialization, it also creates structural dependencies that heighten exposure to global market fluctuations and interest rate shocks. Case studies reveal that debt servicing often diverts scarce resources from critical social sectors, leading to adverse consequences for health, education, and poverty alleviation. Moreover, persistent reliance on foreign loans risks entrenching debt traps, undermining economic sovereignty, and fostering political instability. Ultimately, the article argues that foreign debt must be managed within a framework that balances growth objectives with sustainability.

Keywords. Foreign loans; Debt; Development; Balance of payments; Donors; Social sector; Agriculture; Environment; Politics.

JEL. D02; D69; H81; F63.

Making Money Work: How to Rewrite the Rules of Our Financial System. By Matt Sekerke and Steve Hanke, Wiley, 2025

Clark JOHNSON — Sun, 04 Jan 2026 00:00:00 +0000

MMW starts with the unique role of commercial banks in creating money, and deplores the way this critical function has become a compliance exercise. A different concept of commercial banks' central role can change the way we understand competition in banking, while also energizing the role of investment banks, private equity and venture capital. A more efficient banking system will boost economic growth. The authors revisit Basel capital and liquidity rules, the Dodd-Frank Act, and management of universal banks. They introduce a new concept of "monetary neutrality." They then provide discussions of deposit insurance, of monetary consequences of real estate tax distortions, and of post-GFC QE and LSAP's. They offer a critique of "old monetarism," then show how Divisia metrics can aid monetary management.

Keywords. Fiscal Federalism; Multilevel States; Asymmetric Arrangements; Internal Conflicts; Conflict Resolution; Comparative Federalism.

JEL. D74; H71; H72; H77; P52.

SASE 2025 Conference in Montreal. Québec, Montréal, Canada

ESL Editorial — Sun, 04 Jan 2026 00:00:00 +0000

The SASE 2025 Annual Conference, titled "Inclusive Solidarities: Reimagining Boundaries in Divided Times," serves as a vital intellectual forum for addressing the fragmentation of the global socio-economic order. Set against the backdrop of Montreal’s unique social economy, the conference explores the dual nature of solidarity—its power to unite and its historical tendency to exclude. As the global community navigates a "polycrisis" characterized by climate instability, rapid technological disruption, and rising geopolitical tensions, the event seeks to redefine collective action beyond traditional national or class-based silos. The proceedings prioritize a multi-disciplinary approach, integrating insights from political economy, sociology, and institutionalism. Key thematic pillars include the governance of the digital economy, where algorithmic management threatens traditional labor bonds, and the financialization of essential social sectors. Furthermore, the conference emphasizes the "Just Transition," arguing that ecological sustainability cannot be achieved without social equity. By highlighting "Inclusive Solidarities," the 2025 program aims to showcase how intersectional perspectives—encompassing gender, race, and geography—are essential for building resilient institutions. Ultimately, these conference notes synthesize the shift from neoliberal market-centrism toward a model where the economy is intentionally re-embedded within societal values. The gathering provides a roadmap for policymakers and scholars to foster "transnational support networks" and "platform cooperativism," offering a proactive response to the crisis of democratic and economic trust. This summary highlights SASE 2025 as a decisive moment for reimagining the boundaries of our shared economic future.

Keywords. Inclusive Solidarity; Socio-Economics; Digital Economy; Just Transition; Political Economy.

JEL. A13; J53; P16; O33; Z13.

Front Matter

ESL Editorial — Sun, 04 Jan 2026 00:00:00 +0000

Front Matter