World economy

Fiscal policy in Asia

The role of fiscal policy in Asia’s growth

By Anoop Singh | Spending differently and more efficiently can go a long way. In several Asian emerging economies and low-income countries, subsidies—which are often a distortion and not well targeted to the poor—take up a higher share of total government expenditure than in peers in other regions.


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Who is behind US economic recovery?

NEW YORK |The Federal Reserve is perhaps one of the most important political factors behind the slow but steady US economic recovery -the country is growing at a 2.5% pace a year despite Europe’s recession and China’s slowdown-. But also, and here comes a problem, America’s central bank could be behind the crazy Wall Street rally.



Cyprus

Cyprus bailout effects: Eurozone integration remains vulnerable

With the great amount of debate, chatter, and serious analysis about the EU’s financial rescue of Cyprus from insolvency and potential departure from the eurozone, many wonder if the EU policy emerging from the Cypriot “bail out” will have a lasting impact on the political and economic integration of the Europe. In John Sydney Hopkins view, the EU rescue of Cyprus will be seen as a milestone event with a lasting impact on the EU’s ability to manage the process of integration.


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The Enduring Glow of Gold

BEIJING |  Caixin Magazine | A ripple of skepticism recently hit prices of the yellow metal, but gold remains the ultimate hedge on inflation, as former Morgan Stanley’s Chief Economist for Asia Pacific Andy Xie explains. The global economy has already entered into stagflation with a growth rate of 2 percent and inflation at 3 percent. The inflation rate is likely to rise above 4 percent in 18 months while the growth rate will remain stuck in the same range. With inflation twice as high as the growth rate, the global economy will slip deeper into stagflation.




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“The eurozone must find economic growth without State aid”

MADRID | By Tania Suárez | Director of financial analysis at Profim EAFI, Jose Maria Luna Morales, argues that austerity measures in the euro zone were “necessary” but adds that “some privileges of many public institutions can still be reduced”. He also notes that although “Europe still may suffer months of stagnation”, that does not imply “a long period of stagnation'” for the EZ as a whole.



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Spanish exports fiesta: 40% more companies selling their goods abroad

MADRID | By Juan de la Cruz Martín Rozas, Crédito y Caución | Spain contributes with 1.7% to the global exchange of goods trade, after Germany, France, Italy or the United Kingdom. However, the growth experienced by Spanish exports in recent years, including 2012, is the highest of the European economies.