We examine the short- and long-run effects of financial liberalization on capital markets. To do so, we construct a new comprehensive chronology of financial liberalization in 28 mature and emerging market economies since 1973. We also construct an algorithm to identify booms and busts in stock market prices. Our results indicate that financial liberalization is followed by more pronounced boom-bust cycles in the short run. However, financial liberalization leads to more stable markets in the long run. Finally, we analyze the sequencing of liberalization and institutional reforms to understand the contrasting short- and long-run effects of liberalization.

The views on financial liberalization are quite conflictive. Many argue that it triggers financial bubbles and crises. Others claim that financial liberalization allows markets to function properly and capital to move to its most profitable destination. The empirical evidence on these effects is not robust. This paper constructs a new comprehensive chronology of financial liberalization and shows that a key reason for the inconclusive evidence is that the effects of liberalization are time-varying. Financial liberalization is followed by large booms and busts only in the short run. In the long run institutions improve and financial markets tend to stabilize.

In this paper, I study the potential economic impact of the 2015-18 structural reform agenda in Chile, using the IMF dynamic general equilibrium model (GIMF). I find that the agenda has the potential to significantly increase Chile’s long-run GDP, although it may have some negative effects in the short term. Ensuring a smooth transition to a higher productive potential depends on three key dimensions: the credibility of the reforms, their effectiveness in closing structural gaps, and their speed of implementation. Badly designed reforms that remove only a very small fraction of the existing structural gaps, at a slow speed, and with little credibility, can greatly reduce the positive impact of the reform agenda on GDP.

Finally, runners at all levels can improve their race times while training less, with the revolutionary Furman Institute of Running and Scientific Training (FIRST) program. Hailed by the Wall Street Journal and featured twice in six months in cover stories in Runner's World magazine, FIRST's unique training philosophy makes running easier and more accessible, limits overtraining and burnout, and substantially cuts the risk of injury, while producing faster race times. The key feature is the "3 plus 2" program, which each week consists of: -3 quality runs, including track repeats, the tempo run, and the long run, which are designed to work together to improve endurance, lactate-threshold running pace, and leg speed -2 aerobic cross-training workouts, such as swimming, rowing, or pedaling a stationary bike, which are designed to improve endurance while helping to avoid burnout With detailed training plans for 5K, 10K, half marathon, and marathon, plus tips for goal-setting, rest, recovery, injury rehab and prevention, strength training, and nutrition, this program will change the way runners think about and train for competitive races. Amby Burfoot, Runner's World executive editor and Boston Marathon winner, calls the FIRST training program "the most detailed, well-organized, and scientific training program for runners that I have ever seen."

In Governing for the Long Term, Alan M. Jacobs investigates the conditions under which elected governments invest in long-term social benefits at short-term social cost. Jacobs contends that, along the path to adoption, investment-oriented policies must surmount three distinct hurdles to future-oriented state action: a problem of electoral risk, rooted in the scarcity of voter attention; a problem of prediction, deriving from the complexity of long-term policy effects; and a problem of institutional capacity, arising from interest groups' preferences for distributive gains over intertemporal bargains. Testing this argument through a four-country historical analysis of pension policymaking, the book illuminates crucial differences between the causal logics of distributive and intertemporal politics and makes a case for bringing trade-offs over time to the center of the study of policymaking.

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