What Does the Economy Need to Recover?
In economic theory, “one person’s spending is another person’s income,” which drives aggregate demand in the economy. Often, this cycle breaks due to flawed economic policymaking that ends in economic crisis.
World economy
Emerging Markets Trade Engine Has Lost Power
AXA IM | International trade volume1 is not expanding as fast as before the Global Financial Crisis (GFC). The average annual growth rate in international rate volumes almost halved to 2.4% in 2009-2015 from 5.1% in 2001-2008. For the first time in over four decades, international trade is growing less than world real GDP (the latter recorded at 4.2% in 2001-2008 and 3.3% in 2009-2015).
Risks Are Never A Zero-Sum Game
The orthodox models in use until 2008 did not include financial problems. It was assumed that everyone was responsible for their financial position. But in reality, nobody is aware of all the risks when they freely choose to put their savings in one asset or another, in one bank or other…it’s impossible to cover all the risks.
What’s Really Causing Concern In China
It’s not the slowdown or the devaluation of the yuan which is really worrying, but China’s reforms. Economic reform, which should lead to a free market. And political reform which, unfortunately for the Chinese people, will be some time coming.
US: The “Trumpism” To Come
The big hope of political self-starters like Donald Trump are those voters without a university education, once members of the US middle-class, who accounted for 36% of the electorate in the last elections.
G-20 Should Address Income Gap, Fragility of Financial Systems
Guntram B. Wolff via Caixin | G-20 ministers in Shanghai appeared to be aware of the importance of structural work. In particular, there was agreement in our panel discussions that the Base Erosion and Profit Shifting (BEPS) project of the OECD was an essential element to deal with tax avoidance and ensure that profits are taxed where economic activity generating it takes place.
No Inflation In Texas: A Lesson There?
Benjamin Cole via Historinhas | It is too bad in some regards that Richard “Inspector Clouseau” Fisher, the former president of the Federal Reserve Bank of Dallas, in no longer ensconced in that position. For one, he was always great copy. For seconds, he was one of the most infallible reverse indicators of Post War Era, and economic soothsayers could bet against a Fisherian proclamation with a rare calm.
Implementing Climate Change Policies
CSOs around the world have promoted policies on climate change and ensured that marginalized people’s interests are represented in national climate policy for many years
Ben Bernanke Gives His Take on China’s Policy Choices
Caixin | The 2008 global financial crisis thrust Ben Bernanke into the spotlight as his every move drew unprecedented attention, scrutiny continued until he stepped down as chairman of the U.S. Federal Reserve in 2014.
Populism Takes A Heavy Toll
Everywhere in the Western world, the political debate is becoming increasingly toxic. Just attend a Donald Trump meeting to get acquainted with politics grounded on ludicrous nonsense and scornfully abusive remarks towards women, migrants and Muslims. Not to mention how shamefully he upgrades the Ku Klux Klan, portraying it as a respectful club.