A split between the U.S. and its traditional allies, if it becomes a permanent feature of the new global order, would lead to deeper fragmentation among the world's market-oriented democracies. That will surely shift the long-term balance of power in China's favor, as it moves steadily toward becoming the world's largest economy.

Michael Spence

Globalization is the process by which markets integrate worldwide.

Robotics has already made significant inroads in electronics assembly, with sewing trades - traditionally many countries' first entry point to the global trading system - likely to come next.

Michael Spence

Wit Wing Win

Properly targeted public investment can do much to boost economic performance, generating aggregate demand quickly, fueling productivity growth by improving human capital, encouraging technological innovation, and spurring private-sector investment by increasing returns.

Michael Spence

Men Vest Turns

In economies with excess productive capacity, targeted investment can yield a double benefit, generating short-run demand and boosting growth and productivity thereafter.

Michael Spence

Men Yield Wit

There is no question that the recovery from the global recession triggered by the 2008 financial crisis has been unusually lengthy and anemic.

Michael Spence

Very Usual Us

On their own, tariff and trade barriers, if viewed as transitory negotiating tactics, will not significantly change global investment patterns or the structure of global supply chains and employment.

Michael Spence

Men Change Will

During my Ph.D. program, I became interested in the informational structure of markets that turned into the work on signaling, which was the part of my early work that was recognized for the Nobel Prize, but it was not really a subject at the time.

Michael Spence

Work Time Art

With external help, even the countries ravaged by World War II recovered.

Michael Spence

War Age World War II

We tend to think that employment is employment, and we don't ask the question: is this rewarding employment? Research establishes pretty clearly that typical notions of happiness - that more is better - really don't correspond to the way people think and feel.

Michael Spence

War Men Happiness

Although everyone does benefit from lower-priced goods and services, people also care greatly about the chance to be productively employed and the quality of their work. Declining employment opportunities feel real and immediate; the rise in real incomes brought by lower prices does not.

Michael Spence

Work Men Great

My father once said about being a parent that it is the only thing you do that requires a very long period of learning, and at about the time that you are becoming competent, you don't need the skills anymore. Notwithstanding this modest assessment of their parenting skills, they were wonderful parents.

Michael Spence

Time Pet Parenting

Globalization has redefined the competition for employment and incomes in the United States. Tradeoffs will have to be made between the two.

Michael Spence

Pet Men Will

Actions aimed at supporting deleveraging and balance-sheet repair - such as recognizing losses, writing down assets, and recapitalizing banks - carry longer-term benefits but short-term costs.

Michael Spence

Car Writing Up

China's economic transformation began with the introduction in the 1980s of market incentives in the agricultural sector. These reforms were followed by a gradual opening to the global economy, a process that accelerated in the early 1990s.

Michael Spence

Wit Were Wed

Reforms aimed at increasing an economy's flexibility are always hard - and even more so at a time of weak growth - because they require eliminating protections for vested interests in the short term for the sake of greater long-term prosperity.

Michael Spence

Time Great Weak

My mother was strong-willed, demanding, and very supportive all at the same time.

Michael Spence

Time Willed Will

Developing economies may not have much control over the headwinds that they face today, but that does not mean that they are powerless. Much can be done not just to sustain moderate growth but also to secure a more prosperous and resilient future.

Michael Spence

Power Future Wind

One way to measure the size of a company, industry, or economy is to determine its output. But a better way is to determine its added value - namely, the difference between the value of its outputs, that is, the goods and services it produces, and the costs of its inputs, such as the raw materials and energy it consumes.

Michael Spence

Good Way Vices

A global economy that is levering up, while unable to generate enough aggregate demand to achieve potential growth, is on a risky path.

Michael Spence

While Up Unable

A split between the U.S. and its traditional allies, if it becomes a permanent feature of the new global order, would lead to deeper fragmentation among the world's market-oriented democracies. That will surely shift the long-term balance of power in China's favor, as it moves steadily toward becoming the world's largest economy.

Michael Spence

War Power Men

Digitally enabled supply chains initially increased efficiency and dramatically shortened lead times. Capital was mobile; labor, less so. Economic activity (production, research, design, etc.) moved to any accessible country or region that had relatively inexpensive labor and human capital.

Michael Spence

Whatever advantage Trump thinks he will gain by positioning the U.S. in opposition to its natural allies will be dwarfed by the losses.

Michael Spence

The combination of a workable basic formula and the capacity to improve over time is what one hopes for in any aspect of society: business, government, the non-profit sector.

Michael Spence

Labor, no matter how inexpensive, will become a less important asset for growth and employment expansion, with labor-intensive, process-oriented manufacturing becoming a less effective way for early-stage developing countries to enter the global economy.

Michael Spence

All countries will eventually need to rebuild their growth models around digital technologies and the human capital that supports their deployment and expansion.

Michael Spence

It is a wonderful and unexpected honor to receive the Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel. Receiving this prize with Joseph Stiglitz and George Akerlof, whose work I have learned from and admired, makes it even more gratifying.

Michael Spence

Next to my family, it seems clear to me that the educational institutions and the teachers from whom I had the privilege of learning were especially important.

Michael Spence

China's continued growth and rising household income are creating opportunities for lower-income economies in low-cost manufacturing.

Michael Spence

The research side of academic life is often viewed from the outside as a solo and, at times, lonely activity. In fact, it is quite the opposite: a communal activity in significant part where interaction and interchange generate ideas and critiques of them.

Michael Spence

For highly indebted governments, low interest rates are critical to keep debt levels sustainable and ease pressure to restructure debt and recapitalize banks. The shift to a high sovereign-debt-yield equilibrium would make it impossible to achieve fiscal balance.

Michael Spence

For physical goods, there are costs associated with logistics and lead times, owing to inventories and poor forecasts of the market. With digital capital-intensive technology, however, production will inevitably move toward the final market, wherever it is. This re-localization constitutes a major shift in the structure of global supply networks.

Michael Spence

I was not thinking about infinite multipliers when I was 10. But I did have a father who was a Ph.D. in commerce and finance and an intellectual man. And so I had a feeling, probably about the time I went to college, that I would try to be a scholar and teacher, but I didn't know which field.

Michael Spence

I picked economics at the end of my undergraduate time because it seemed to be a really nice combination of theory, including mathematical theory on one hand, and things that are quite practical that you can touch and see and feel. So I picked it, and I consciously thought of it as an experiment to see if I liked it. And it worked.

Michael Spence

Monetary policy should never have been expected to shift economies to a sustainably higher growth trajectory by itself.

Michael Spence

Education is, in the end, about individual interactions and about learning.

Michael Spence

Productivity gains are vital to long-term growth because they typically translate into higher incomes, in turn boosting demand. That process takes time, of course - especially if, say, the initial recipients of increased income already have a high savings rate.

Michael Spence