Economics & Global Affairs

672 Items

Federal Reserve Chairman Jerome Powell gestures while he testifies to the House Financial Services Committee on Tuesday, Feb. 27, 2018. (AP Photo/Jacquelyn Martin)

AP Photo/Jacquelyn Martin

Analysis & Opinions - Project Syndicate

The Fed Should Be Careful What It Wishes For

| Feb. 28, 2018

Empirical relationships in economics are sufficiently fragile that there is even a “law” about their failure. As British economist Charles Goodhart explained in the 1980s, “any observed statistical regularity will tend to collapse once pressure is placed upon it for control purposes.” Central banks in advanced economies have recently been providing a few more case studies confirming Goodhart’s Law, as they struggle to fulfill their promises to raise inflation to the stable plateau of their numerical targets.

Iran US America Flag


Analysis & Opinions - The National Interest

Recognizing the Limitations of American Influence in Iran

| Feb. 14, 2018

It is time for a reality check: despite claims to the contrary by Iran’s supreme leader, the United States is not the central actor in the drama that recently unfolded in Iran, nor was it the central actor in Egypt back in 2011. The mass protests that forced the Egyptian dictator from power were driven by the Egyptian public’s growing disenchantment with decades of political, economic and social mismanagement by a succession of military rulers. Contemporary observers noted with surprise the absence of references to the United States or other foreign-policy considerations during the protests. The demonstrators’ recurrent chant—“bread, freedom, social justice and human dignity”—encapsulated the domestic motivations behind the public’s mobilization.


Tasnim News

Blog Post - Iran Matters

A Wake-up Call to Rouhani

  • Masoud Movahed
| Jan. 17, 2018

The recent protests in Iran are surely a wakeup call for President Rouhani. To respond the legitimate grievances of low-income Iranian households, the Rouhani government should do its best to further diversify the Iranian economy and to bolster its manufacturing and industrial sectors. The Rouhani government should also promote the export of non-oil products, following the models of countries such as South Korea, Taiwan, and recently, the Chinese leviathan. Labor-intensive industries as well as service sectors like information technology, ought to be solidified. Rouhani should call upon state-directed industrial committees and agencies to provide Iranian entrepreneurs and manufacturers with fiscal resources, and he should foster financial support and protection for firms that place emphasis on exporting goods abroad.

French President Emmanuel Macron, left, and Chinese President Xi Jinping shake hands after a joint press briefing at the Great Hall of the People in Beijing on Jan. 9, 2018 (AP Photo/Mark Schiefelbein, Pool).

AP Photo/Mark Schiefelbein, Pool

Analysis & Opinions - Institut Montaigne

Macron’s Travel Diaries - First Step: China

| Jan. 08, 2018

Macron’s decision to start off the year with a trip to China carries a symbolic weight, which adds a special aura to his arrival in Beijing. Elected in May by 66% of the French electorate and supported by a strong parliamentary majority, the President was able to assert his power and authority. A quality much appreciated by Chinese leaders, who are astounded by Angela Merkel and Theresa May’s fragility, despite their respective successes in their countries’ parliamentary elections. 

Pigeons fly in front of the Euro sculpture at the old European Central Bank building in Frankfurt, Germany, on Thursday, Nov. 10, 2016. (AP Photo/Michael Probst)

AP Photo/Michael Probst

Analysis & Opinions - Project Syndicate

Monetary-Policy Normalization in Europe in 2018

| Dec. 22, 2017

When the European Central Bank’s Governing Council met on December 14, there was little to surprise financial markets, because no policy changes could be gleaned from public remarks. The previous meeting, in late October, had already set the stage for the normalization of monetary policy, with the announcement that the ECB would halve its monthly asset purchases, from €60 billion ($71 billion) to €30 billion, beginning in January 2018.

House Ways and Means Committee Chairman Kevin Brady, R-Texas, whose panel is charged with writing tax law, pauses for reporters just after the House gave a significant boost to President Donald Trump's promise to cut taxes on Thursday, October 26, 2017. (AP Photo/J. Scott Applewhite)

AP Photo/J. Scott Applewhite

Analysis & Opinions - The Washington Post

Lawrence Summers: What I do Support in a New Tax Plan

| Oct. 25, 2017

I have been very sharply critical of what I regard as unprofessional exaggeration by advocates of the Trump tax proposal. Reasonably enough, people have asked what I am for.

I strongly support tax reform in general and especially corporate tax reform on the model of the highly successful bipartisan 1986 tax reform, which achieved very large rate reductions, spurred economic growth and improved the efficiency of the economy while being revenue- and distribution-neutral.

In this Dec. 6, 2012, file photo, Kevin Hassett, then a senior fellow and director of Economic Policy at the American Enterprise Institute, testifies on Capitol Hill before a Joint Economic Committee hearing. (AP Photo/ Evan Vucci, File)

AP Photo/ Evan Vucci, File

Analysis & Opinions - The Washington Post

One Last Time on Who Benefits From Corporate Tax Cuts

| Oct. 22, 2017

recently asserted that Kevin Hassett deserved a failing grade for his “analysis” projecting that the Trump administration proposal to reduce the corporate tax rate from 35 to 20 percent would raise the wages of an average American family between $4,000 to $9,000. I chose harsh language because Hassett had, for what seemed like political reasons, impugned the integrity of people like Len Burman and Gene Steuerle who have devoted their lives to honest rigorous evaluation of tax measures by calling their work “scientifically indefensible” and “fiction.” Since there have been a variety of comments on the economics of corporate tax reduction, some further discussion seems warranted.

An aerial photo shows buildings still surrounded by flood water in San Juan, Puerto Rico a week after the passing of Hurricane Maria.Wednesday, Sept. 27, 2017 (AP Photo/Ramon Espinosa)

AP Photo/Ramon Espinosa

Analysis & Opinions - The Washington Post

Trump Could Help Puerto Rico With the Stroke of a Pen. Why Hasn’t He?

| Sep. 28, 2017

My modestly informed guess is that Hurricane Maria and Puerto Rico will appear in history textbooks right next to Katrina and New Orleans. Puerto Rico’s unique territorial status and institutional constraints make the federal government’s response very difficult. And as I shall suggest in a subsequent post, the hurricane has greatly exacerbated Puerto Rico’s profound debt burden and development challenges. Yet one has to wonder why we are fanning the flames.