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looking beyond borders

foreign policy and global economy

Archive for the tag “Financial crisis”

The End Of Economics?

In the three decades since the end of the Cold War, economics has enjoyed a kind of intellectual hegemony. In the three decades since the end of the Cold War, economics has enjoyed a kind of intellectual hegemony. It has become first among equals in the social sciences and has dominated most policy agendas as well. Economists have been much sought after by businesses, governments, and society at large, their insights seen as useful in every sphere of life…That hegemony is now over.

Read Here – Foreign Policy

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Extraordinary Measures For Ordinary Times

The legacy of 2007 is still with us. Its most devastating and destructive effect was to put a premium on unconventional monetary measures. Unfortunately, when policymakers scrambled in search of “big bazookas” ten years ago, they set the stage for the return of an old character: a strongman willing to pull the trigger.

Read Here – Project-Syndicate

Populism Spreads Across U.S., Europe But Could Halt As Economy Rallies

As the global economy picks back up, it is difficult to imagine populism maintaining momentum. A new Pew study finds, “Nearly a decade after the worst economic downturn since the Great Depression, economic spirits are reviving. … A median of 51% in the 17 advanced economies surveyed believes that their current economic situation is good, 45% think it’s bad,” and there is “strong upbeat sentiment in northern Europe.”

Read Here – The Cipher Brief

A Tight Squeeze

During the financial crisis, when the global economy faced its gravest threat since the 1930s, policymakers sprang into action. To stimulate the economy, central banks slashed interest rates and politicians spent lavishly. As a result, the recession, though bad, was far less severe than the Depression. Unfortunately, however, that quick response nearly exhausted governments’ economic arsenals. Seven years later they remain depleted. Central banks’ benchmark interest rates hover above zero; government debt and deficits have ballooned. Should recession strike again, as inevitably it will, rich countries in particular will be ill-equipped to fend it off.

Read Here – The Economist

Global Economy Three Engines Down

The global economy is like a jetliner that needs all of its engines operational to take off and steer clear of clouds and storms. Unfortunately, only one of its four engines is functioning properly: the Anglosphere (the United States and its close cousin, the United Kingdom).

Read Here – Project Syndicate

A Good Question To Ask

What do the 2,400 people who work for the International Monetary Fund (IMF) actually do?

Read Here – Brookings

The Dollar Sinkhole

China’s $3.8 trillion of currency reserves are the largest stockpile ever amassed. Economists have long seen that money as a strength — the ultimate rainy-day fund should China’s shadow-banking system blow up. Trouble is, the value of those holdings depends on China’s $1.3 trillion of U.S. Treasuries. If they plunge in value, all hell breaks loose and officials from Beijing to Brasilia will scramble to exit the American bird cage, writes William Pesak.

Read Here – Bloomberg

The Problematic Continent

Among all continents, Asia has the ability to disrupt the world the most.

Read Here – The Atlantic

Need For A New Global Tonic

Not so long ago, the twin forces of technology and economic liberalisation seemed destined to drive ever greater volumes of capital, goods and people across borders. When the global financial crisis erupted in 2008, that hubris was replaced by fears of a replay of the 1930s.

Read Here – The Economist

The Return of Politics

Europe, and indeed much of the world, is facing a crisis of democracy. The economic crisis is not the cause of public unrest; rather it has provided an opportunity to bring public concerns about the way they are governed into the open.

Eurobarometer figures show a pervasive loss of trust in government and in political parties in all European countries. More than half the population, and in some cases 80-90%, do not trust their government or political parties. The slogan of the Spanish indignados ‘Real Democracy Now’ implies that formal representative democracy no longer is able to meet the aspiration of citizens. What this means is that the economic crisis cannot be solved without addressing the democratic deficit and vice versa. Without a rethinking of democracy our economic problems will not go away.

Read Here – The European

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