In lies we trust?
MADRID | By Álex García.
World economy
SOE reform in China needs examples more than policies
BEIJING | By Caixin | A breakthrough can only happen when central SOEs inChina – not just their subsidiaries – welcome private investment.
Getting a job in Wal-Mart is twice more difficult than being admitted at Harvard
WASHINGTON | By Pablo Pardo | It is twice easier getting a minimum wage job with no benefits at Wal-Mart than being admitted as an undergrad to Harvard. The comparison shows how extreme is the labor market in the US for non-educated workers, and also that, in today’s world, getting a first-class education can be easier than a third-class job.
China: Why ‘gentleman’ matters
BEIJING | By Will Spence via Caixin | The English Gentleman may be one of our country’s most enduring national symbols, but it is still a somewhat controversial topic back home. In China, however, the concept has flourished in a wholly positive way. The Chinese government often says it wants to build up its soft power, but for this to happen it may have to embrace its heritage and adopt a gentler approach.
Why Spain could grow half a point more than what the IMF says
WASHINGTON | By Pablo Pardo | Would the true IMF prediction please stand up? The Fund has just predicted a growth of 0.9 percent GDP for Spain in 2014. Three months ago, it was 0.6 percent. Seven months ago, it was 0.2 percent.
Interest rate-inflation targeting swan song
SAO PAULO | By Marcus Nunes| The St Louis Fed Regional Economist has an interesting article: The Ups and Downs of Inflation and the Role of Fed Credibility. Although they likely don´t realize it, it reads like “last rites” to the present system.
Stronger US wage growth should underpin firming inflation backdrop
LONDON | By Michael Gapen at Barclays | Persistent improvement in US labor markets has caused the Fed to continue tapering and to alter its quantitative policy rate guidance in favor of qualitative language indicating that the committee is prepared to maintain the current target rate for the federal funds rate for “a considerable time after the asset purchase program ends, especially if projected inflation continues to run below the Committee’s 2 percent longer-run goal.”
Inflation: the “target” has become a “barrier”
SAO PAULO | By Marcus Nunes via Historinhas | The Fed’s (and central banks in general) preferred tactic is “wait-and-see”, usually expressed in the form of “we will monitor closely”! Instead of becoming a focal point for the coordination of expectations, inflation has become a barrier to getting the economy’s recovery back on track.
Empowering U.S. workers to challenge corporate decision making
NEW YORK | By Richard Kirsch via next New Deal | If we are to give American workers the ability to bargain for a fair share of the wealth they create, we need strengthen labor law and bring in 34 millions workers (one-in-four) who are now excluded from the National Labor Relations Act. These include domestic workers, farmworkers, front-line workers with minimum supervisory responsibilities, and public employees.
Inflation target: the new “one size fits all” (4%)
SAO PAULO | By Marcus Nunes | For the last four years many have touted increasing the inflation target to 4% as the best way to “cure” our ills. If I well recall, it started with the IMF, at least by its Chief-Economist Olivier Blanchard, who in an IMF publication wrote “Rethinking Macroeconomic Policy.”