Will China Surpass the U.S. to Become the Number One Economic Power?
Hengzhong Liu June 18, 2022 This article argues that the current wave of deglobalization will not stop China from surpassing the United States as the largest economy in the next decade, but it will prevent China from becoming the No. 1 economic
A Primer on Covid-19 and its Impact on the Supply Chains in China
By Zhio Xi April 30, 2021 The issue of supply chains has been one of the most discussed economic topics in China recently. Since joining the WTO in 2001, China's integration into the global economy has been accompanied by the reshaping
The Pandemic and the Emerging Markets Crisis: How Fragile are the Economies?
Utku Demir and Merih Uctum
June 11, 2020
The Emerging Market (EM) economies that came out of the 2008 financial crisis relatively faster than advanced economies are hard hit by a quadruple-whammy this time: the pandemic, capital outflows, economic recession, and debt crisis.Read more
Europe unveiled $2 trillion stimulus to combat the Covid19 crisis
By Fotis Siokis, As a great leap of solidarity, the European Commission unveiled on Wednesday, May 27th, the “Next Generation EU” recovery fund plan equal to $ 825 billion (€750 billion). Of this amount, nearly $ 550 billion will be in the form of grants
Lessons from Taiwan’s Healthcare Reform
William B. Thorne
November 27, 2019
Taiwan's single-payer National Health Insurance system was implemented in 1995 and designed using the U.S. Medicare program as a template.Read more
Unconventional Monetary Policies Become Conventional After All?
Fotios Siokis
October 21, 2019
What are unconventional monetary policies? How are they implemented in the European Union? What does the future look like? In this article we address these questions. On September 12,2019, the President of the European Central Bank (ECB) announced a new monetary stimulus package... Read more
Trump’s Trade Quagmire
Paul Krugman
August 30, 2019
Remember the Vietnam quagmire? In political discourse, “quagmire” has come to have a quite specific meaning. It’s what happens when a government has committed itself to a policy that isn’t working but can’t bring itself to admit failure and cut its losses.Read more
U.S. – China Trade Conflict: Impacts on China
Zhuo Xi
July 23, 2019
Starting from the different positions held by the Trump administration and the Chinese government on issues such as the bilateral trade balance, market access, and intellectual property transfers, China and the U.S., the world’s two largest economies, have been quarreling over trade for more than a year. Read more
Janet Yellen in Conversation with Paul Krugman
https://www.youtube.com/watch?v=elgz5bzwfpQ
Measuring Inequality… Are we doing it right?
Andreas Kakolyris
April 01, 2019
Traditional economic indicators often mask the realities of rising inequality and limited social mobility. Revisiting the Gini coefficient alongside Atkinson’s inequality index highlights the need for better measures to understand well-being and guide economic policy.
The Sword of Damocles (Part II): The Precariousness of the Greek Banking System during the Great Sovereign Debt Crisis
Fotios Siokis
March 04, 2019
Despite large-scale liquidity support and bank recapitalizations, Greece’s banking system has struggled to restore credit growth. High levels of non-performing loans remain the key obstacle to financial stability and economic recovery.
The Sword of Damocles (Part I): The Precariousness of the Greek Banking System During the Great Sovereign Debt Crisis
Fotios Siokis
February 19, 2019
Although Greece exited its bailout program in 2018 and returned to modest growth, its banking system remains too fragile to support the recovery. Heavy exposure to sovereign debt, repeated bank recapitalizations, and a surge in non-performing loans have left banks unable to finance new investment.
Argentina’s Latest Crisis
Paul Krugman
November 16, 2018
Argentina’s sharp currency depreciation and surging interest rates have exposed deep structural weaknesses in the economy. Despite an IMF bailout and aggressive fiscal and monetary reforms, high inflation, dollar-denominated debt, and external vulnerabilities continue to threaten economic stability.
The Turkish Currency and Debt Crises
Merih Uctum and Zhuo Xi
September 22, 2018
Turkey’s sharp currency depreciation exposed deep vulnerabilities stemming from heavy foreign-currency borrowing and rising inflation. Despite years of strong growth, external debt pressures and policy constraints now threaten financial stability and raise the risk of broader emerging-market contagion.
The Welfare State in the Age of Globalization
Branko Milanovic
March 05, 2018
It has become a truism to say that the welfare state is under stress from the effects of globalization and migration and thus may not be able to provide the same level of income support that it had provided in the past. In my previous post that looked at policies to reduce inequality in the 21st century, I mentioned that I would follow up with a discussion of the welfare state. In this post I want to go back to the origins of the welfare state to understand the origin of the current stress.
Why 20th Century Tools Cannot Be Used to Address 21st Century Income Inequality
Branko Milanovic
February 16, 2018
The remarkable period of reduced income and wealth inequality in the rich countries, roughly from the end of the Second World War to the early 1980s, relied on four pillars: strong trade unions, mass education, high taxes and large government transfers. Since the increase of inequality twenty or more years ago, the failed attempts to stem its further rise have relied on trying, or at least advocating, the expansion of all or some of the four pillars. But neither of them will do the job in the 21st century.
A Primer on Rules of Origin in NAFTA Negotiations and What Is Next
Richard J Nugent III
December 22, 2017
The latest round of negotiations of the North American Free Trade Agreement (NAFTA) on November 21 ended with no major breakthroughs on contentious issues such as autos, dairy and rules of origin among others. The US administration’s demand that at least half of a NAFTA-qualifying vehicle should be made in the US and 85 percent in North America met stiff resistance from Canada and Mexico.
Greek Debt in Historical Perspective: An Opinion Article
Anthony Rodolakis
November 22, 2017
Current fiscal proposals are projected to lead to a sizeable increase in U.S. debt and while people point to the Greek crisis to warn about high debt, a closer look at Greece’s debt history reveals few similarities.
Technical Note: Federal Funds Rate Hike and Sovereign Risk in Latin America
We conduct a country-by-country time series analysis of the government reaction function using impulse response of the country risk (Measured by the EMBIG) to an increase in de Federal Funds Rate.
Federal Funds Rate Hike and Sovereign Risk in Latin America
Miguel Acosta-Henao
August 31, 2017
The Fed has started increasing the federal funds rate, reversing its decade long accommodative monetary policy. The last time such a reversal in the Fed policy occurred, the impact on emerging markets in Latin America was deleterious. This article examines if history will repeat itself.