More in Global Economy

10 months

The Outsized US Suspicions about Trade: International Comparisons

The US economy, because of its enormous internal domestic market, is actually much less exposed to the effects of international trade than smaller economies around the world. For the world economy as a whole, the ratio of imports/GDP is about 28%, using World Bank data. For the US economy, the ratio of imports/GDP is 15%, about the same as Japan. For China, the import/GDP ratio is 18%; for Korea, it's 38%; for Germany, with all of its within-the-European-Union trade, the import/GDP ratio is 40%.

10 months

Should Governments Tax Products That Are Fun But Harmful?

Should you face an extra tax if you drink soda? Eat potato chips? Uncork some wine? Light up a cigarette or joint? Toast yourself in a tanning booth? Many governments think so. Mexico taxes junk food. Berkeley taxes sugary soft drinks. Countless governments tax alcohol and tobacco. Several states tax marijuana. And thanks to health reform, the U.S. government taxes indoor tanning.

10 months

Is China A Currency Manipulator?

The US administration has avoided the debate on currency manipulation in the past years due to the impact of the financial crisis. Why? Because all major economies have tried to solve their imbalances through the same policies: massive liquidity injections and currency debasement. Currency wars were denied, but the “beggar thy neighbor” policy of the $20 trillion global monetary expansion is undeniable.

10 months

Italy’s Problem Is Not The Euro, It’s Political Spending

The Italian government has created another massive turmoil in European markets with its 2019 budget proposal.

10 months

Corporations and Social Values

There is a long-standing debate over the goals of corporations. Should they focus mostly or exclusively on earning profits? Should they be willing to take on broader social missions? Should they be required to do so? What follows are some notes and snippets on this controversy, from various angles.

10 months

UK Financial Services: Opportunities and Threats Post Brexit

A Brexit deal is still no closer, but trade will not cease even if the March deadline passes. In the short-term, UK and EU economic growth will suffer. Medium-term new arrangements will hold back capital investment. Long-term, there are a host of opportunities, in time they will eclipse the threats.

10 months

Brazil Faces Significant Challenges

Uncontrolled spending and ruinous results … Brazil has been a prime example of the policy of “more is less”. Under Lula and Rousseff the country felt invincible and believed that entering into massive trade and fiscal deficits while spending on ruinous government publicity projects and subsidies would work.