Economics

How Stable Is the Global Economy?

Amid all the noise coming out of Washington these days, it seems that the remarkable run of Western stock markets in 2017 has come to be taken for granted by the average investor. Historic highs come and go every few months; consumers note them for a moment and then go about their lives. Yet, in […]

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Economics

PS: Trump’s Anachronistic Trade Strategy

In case you missed it, there is a good post on Project Syndicate by Richard Baldwin on the Trump team’s misreading of the unemployment problem. An excerpt: Trump and his team are missing a simple point: twenty-first-century globalization is knowledge-led, not trade-led. Radically reduced communication costs have enabled US firms to move production to lower-wage countries. […]

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Finance, Society

Mohamed El-Erian: “The Democratic Disruption of Finance”

Mohamed El-Erian has an insightful column on Project Syndicate in which he suggests that the technology-driven revolutions that have affected so many sectors are finally coming to finance as well. After commenting on the most obvious example, Bitcoin, El-Erian notes the following: More promising examples, albeit less well-known, may be found in Internet-driven lending and borrowing clubs […]

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Manufacturing, Society

Welcoming the “Circular Revolution”

  There is an interesting post by Frans van Houten (CEO of Royal Philips) on ProjectSyndicate on what he calls “The Circular Economy.” Van Houten makes the point that the world has to move from a “linear” economy in which products are produced, consumed and then discarded to a circular model in which the full […]

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Economics, Politics

Hausmann: “The Specialization Myth”

Harvard’s Ricardo Hausmann has an interesting post on ProejctSyndicate in which he argues that urging developing countries to specialize is the wrong advice. His view is that it is not just too risky for cities or nations to bet everything on a few sectors, but that a diversity of economic activity actually creates more wealth […]

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Economics, Society

Why The American Consumer Is Not OK

Stephen S. Roach, formerly of Morgan Stanley Asia and now at Yale’s Jackson Institute of Global Affairs, has a timely piece on Project Syndicate explaining his view that any news of a recovery for US consumers is hype and not supported by the data. Roach’s analysis suggests to him that the typical post-recessionary release of […]

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Economics, Politics

Should Germany Exit the Euro?

There is an interesting recent post on Project Syndicate by Hans-Werner Sinn, Professor of Economics at the University of Munich, commenting in George Soros’ call for Germany to “lead or leave” the European Union. Prof. Sinn makes the point that “many investors echo Soros. They want to cut and run – to unload their toxic paper […]

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