Author: Karthick Arunachalam

Commentary, Macroeconomics

COMMENTARY: Peso Predicaments: Economic Turmoil in Argentina

Karthick Arunachalam

Arz Taneja, St. Stephen's College, University of Delhi -- Argentina is in trouble—economic trouble. Inflation has breached a new ceiling, crossing the 120 percent mark. The Argentine peso is at risk of yet another devaluation, leading to the currency being traded on the black (or should we say blue) market for the dollar at prices roughly double that of the current exchange rate. In an effort to stabilize the peso, the Argentine government imposed a slew of rules and regulations on how dollars can be accessed, which has led to the birth of a dozen different exchange rates, several of which are quite strange. For instance, under the “Coldplay Dollar” exchange rate (374 pesos per dollar), concert promoters who book performers charging in dollars are subject to a 30 percent tax, which fans ultimately have to cover on top of ticket costs.  

Commentary, Environment

COMMENTARY: Nature’s Wrath: The Impact and Significance of the Canadian Wildfires

Karthick Arunachalam

Yi Zhi (Harry) Zhang, Boston College -- Over the last few months, Canada’s historic wildfire season has captured the world’s attention. Hundreds of fires are burning throughout the country, reaching every province except for Prince Edward Island and Nunavut. As of early June, the fires had consumed over 4.4 million hectares of land. The Canadian government has called this wildfire season the country’s “most severe on record” and has warned that higher-than-normal fire activity could persist for the remainder of 2023. What has caused these fires? What industries do they affect? And what do they tell us about our planet’s future?

Commentary, Environment

COMMENTARY: Climate Change and the Fishing Industry in Asia and Africa

Karthick Arunachalam

Celestine Lindarto, University of Western Australia -- From around the mid-1990s to 2007, oceans across the globe took in over 30 billion metric tons of carbon from fossil fuel combustion, with the world’s highest sea level being recorded in 2022. Climate change has also resulted in increased ocean surface temperatures as well as heightened severity of weather events such as tropical storms. Due to these climatic events, the fishing industry is seeing changes in both the distribution and abundance of fish as they move away from equatorial territories and swim poleward to find cooler regions. 

Commentary

COMMENTARY: Poverty Traps in Rural India: Why the NREGS Is Failing To Tackle Persistent Poverty

Karthick Arunachalam

Hugh O'Reilly, University of Manchester -- India is home to the largest public workfare program to ever exist. The National Rural Employment Guarantee Scheme (NREGS) employs between 21 and 55 million rural households every year and mandates employment as a legal right for adults. The aim is twofold: to serve as a safety net for the rural poor through employment insurance, particularly in the agricultural off-season, and to develop local infrastructure such as irrigation systems, roads, water networks, and environmental conservation.

Commentary

COMMENTARY: El Salvador’s Bitcoin Adoption: The Great Cryptocurrency Experiment

Karthick Arunachalam

Kyle Feinstein, Stanford University -- After much anticipation, Bitcoin City has met its end. The futuristic city was first announced at the 2021  Latin American Bitcoin and Blockchain Conference along with a 10 billion USD bond investment. This urban oasis was a symbol of El Salvador’s unprecedented decision to adopt Bitcoin as legal tender in 2021. The metropolis was to be built at the base of the Conchagua volcano and serve as a hub for cryptocurrency mining and foreign investment. Bitcoin City’s strategic location offered a steady source of geothermal energy for bitcoin mining; to enhance its appeal, the city would also not collect income taxes. As a testament to El Salvador’s ambitious efforts to integrate cryptocurrency into the national economy, Bitcoin City had a circular layout, invoking the shape of a coin.

Commentary

COMMENTARY: San Francisco’s Real Estate Nightmare: Office Vacancies and Urban Flight

Karthick Arunachalam

Devan Bhumralkar, Stanford University -- In early 2023, the office vacancy rate in San Francisco climbed to a record 34.6%. The compounded effects of the remote work movement, massive layoffs in the tech industry, and the general economic downturn have left the city’s once-thriving financial district seemingly empty. Although one of the worst examples, San Francisco is not unique: High office vacancies have been the story nationwide, with cities like New York and Chicago seeing vacancy rates of 16% and 19%, respectively. 

Commentary

LONG-FORM COMMENTARY: The True Cause of Silicon Valley Bank’s Collapse

Karthick Arunachalam

Andrew Zeng, Stanford University -- On March 10th, 2023, Silicon Valley Bank, a premier financial institution in the startup world, suddenly collapsed. The federal government soon seized its assets, and as its clients tried, increasingly in vain, to withdraw their deposits, panic soon set in. Wealthy, platformed individuals began demanding that the government bail out the bank and compensate them, while news anchors and financial analysts predicted a ripple effect that would irreversibly end the dominance of Silicon Valley.

Commentary

COMMENTARY: Qatar’s World Cup: Boon or Bust?

Karthick Arunachalam

Jacob Ye, Boston College -- Every four years, all eyes turn towards a month-long competition in the world of soccer: the FIFA World Cup. The World Cup is considered the most prestigious prize in the sport, and boasts the title as the most watched sporting event. The 2018 Russia World Cup reached over half the world's population. Now, four years later, Qatar’s 2022 World Cup continues to impress with record-breaking viewership. The host of the World Cup receives billions of dollars in sponsorships, advertising, and merchandising. However, the host nation pays a steep cost. Indeed, the 2022 Qatar World Cup was the most expensive World Cup to date. Was it worth it?