More in Global Economy


2 months

US Domination in the Global Stock Market

The stock market, like any other market, is a set of relative opportunities, not absolute ones. I have never seen a more pessimistic environment despite a stock market that continues to reach all-time highs. The S&P 500. Many economists are writing about the evidence of the bubble and the risks of a stock market crash.

2 months

Governments With Monetary Sovereignty Cannot Issue All The Debt They Want

In this era of monetary fiction, one tends to read all types of undocumented and misguided views on monetary policy. However, if there is one that really is infuriating is the MMT science fiction.

2 months

Divergent – The Breakdown of Stock Market Correlations, Temporary or Permanent?

Emerging market stocks have stabilised, helped by the strength of US equities. Rising emerging market bond yields are beginning to attract investor attention. US tariffs and domestic tax cuts support US economic growth. US$ strength is dampening US inflation, doing the work of the Federal Reserve.

2 months

US Multinationals Producing Elsewhere: In the Trade War Crossfire

Most of the fuss about international trade focuses on goods and services that cross international borders. But a number of major US multinational companies--GM, Ford, Starbucks, Nike, and others--have  both production facilities and large sales in China. For example, GM sells more cars in China than in the United States. Overall, US exports of goods and services to China in 2016 were $170 billion; but total revenues of US multinationals producing and selling in China that year was twice as high at  $345 billion. 

2 months

China: Why We Should be Even More Worried After the Devaluation

I find it amusing to read some analysts stating that the Chinese government’s stealth yuan devaluation has offset the impact of tariffs.

2 months

Victories Against Air Pollution

There is a certain kind of environmentalist who seems unable to acknowledge any good news about the environment, because it might create complacency about remaining issues. I'm not a fan of this approach. When successes are denied, credibility diminishes. And if there's never been an environmental success to celebrate, I'm more likely to be discouraged about the future than energized. In that spirit, here are some figures from an Environment Protection Agency annual report, Our Nation's Air.

2 months

Moral Licensing: When Doing Good Frees You to Do Bad

"Moral licensing" is a term from the behavioral psychology literature. Daniel Effron of the London Business School, who has done some of the research in this area, descrbes it this way: "[T]he ability to point to evidence of past virtue can ironically make people more willing to act less-than-virtuously." Or as the title of one article puts it "being good frees us to be bad."