Economics & Global Affairs

227 Items

Blog Post - Views on the Economy and the World

Moore Troubles for the Fed

Apr. 30, 2019

Of the two men whom Donald Trump had intended to nominate to empty seats on the Federal Reserve Board, Herman Cain has now withdrawn his name.  This leaves the other one, Stephen Moore.

The Senate would have to decide whether to confirm Moore. He has some problems roughly analogous to Cain’s:  he is considered to be under an ethical cloud and he often gets his economic facts wrong.  Cynics might respond that he would thereby fit right in with the roster of Trump nominees throughout the government.  But Trump’s earlier appointments to the Fed have been people of ability and integrity and have been doing a good job, Chair Jerome Powell in particular. Perhaps Trump did not start paying attention to Fed appointments until recently.

 

 

Sovereign Venture Capitalism: At a Crossroad

StockSnap/Pixabay

Analysis & Opinions - The Economist

Sovereign Venture Capitalism: At a Crossroad

| Oct. 03, 2018

What the Iron Man-like character is claiming for his futuristic automotive company is not unheard of. On a systemic basis, mammoth institutional investment—especially from sovereign wealth funds (SWFs)—is flowing into start-ups and technology-oriented publicly traded companies. In this case, Saudi billions would help Mr Musk escape the pressures of being publicly listed. SWFs have invested large sums into high-growth start-ups promising innovation and financial returns. In fact, just this month, Saudi’s Public Investment Fund (PIF) announced a US$1bn investment in Tesla’s rival, Lucid, and a US$2bn stake in Tesla. The rise in SWF balance sheets and activity is having ramifications on global efforts to be more Silicon Valley-like, and on Silicon Valley itself.

Aerial view of Shanghai World Financial Center and Jin Mao Tower

Mgmoscatello/Wikimedia Commons

Analysis & Opinions - Foreign Affairs

Stop Obsessing About China

| Sep. 21, 2018

The United States is a deeply polarized nation, yet one view increasingly spans the partisan divide: the country is at imminent risk of being overtaken by China. Unless Washington does much more to counter the rise of its biggest rival, many argue, it may soon lose its status as the world’s leading power. According to this emerging consensus, decades of U.S. investment and diplomatic concessions have helped create a geopolitical monster. China now boasts the world’s largest economy and military, and it is using its growing might to set its own rules in East Asia, hollow out the U.S. economy, and undermine democracy around the globe. In response, many Democrats and Republicans agree, the United States must ramp up its military presence in Asia, slap tariffs on hundreds of billions of dollars of Chinese goods, and challenge China’s influence worldwide.

But this emerging consensus is wrong and the policy response misguided. China is not about to overtake the United States economically or militarily—quite to the contrary. By the most important measures of national wealth and power, China is struggling to keep up and will probably fall further behind in the coming decades. The United States is and will remain the world’s sole superpower for the foreseeable future, provided that it avoids overextending itself abroad or underinvesting at home.

Display boards at the Australian Stock Exchange flash news of a falling market in Sydney, Friday, September 23, 2011.

AP Photo/Rick Rycroft

Analysis & Opinions - Australian Financial Review

How We Staved Off Recession and the GFC

| Sep. 13, 2018

In Australia we successfully navigated the GFC without losing a single financial institution – although we came perilously close in a number of cases – and without a single citizen losing their saving deposits. We also became the only major developed economy  to come through the great global recession unscathed.

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Analysis & Opinions - Bloomberg Opinion

Trump’s Trade War Has a Bright Side for Canada

| June 08, 2018

Last week was a trying one for Canadian Prime Minister Justin Trudeau. You may think that I am referring to the imposition of U.S. tariffs on imports of Canadian steel. But Trudeau actually faced a harder issue than the one about how to respond to President Donald Trump’s declaration that trade with Canada posed a threat to U.S. security.