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looking beyond borders

foreign policy and global economy

Archive for the tag “financial markets”

Will Trump Destroy The Dollar?

Under President Trump, it is possible, for the first time in a generation, to imagine a concerted attack on the central bank. Conceivably, the United States could repeat the story of the mid-1960s and ’70s, when a 15-year period of central-bank independence was brought to an end by presidential bullying. Back then, Lyndon B. Johnson summoned the Fed chairman, William McChesney Martin Jr., to his Texas ranch and shoved him around the living room while proclaiming that low interest rates were imperative in a time of war.

Read Here – The Atlantic

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The Risks To America’s Booming Economy

The US has experienced a decade of excessively low interest rates, which have caused investors and lenders to seek higher yields by bidding up the prices of all types of assets and making risky loans. The danger is that overpriced assets and high-risk loans could lose value and cause an economic downturn.

Read Here -Project Syndicate

China Names New Top Economic Officials

Changes to the top positions at China’s three main economic departments before the 19th National Congress of the Communist Party of China (CPC) will build a new core team to deal with tougher challenges to economic reforms in the future.

Read Here – ecns.cn

The Promise Of Middle East Sovereign Wealth Funds

In the aftermath of the 2008 global financial crisis, investment capital became far scarcer and efforts to ensure SWF transparency and accountability gave way to competition for their capital. Far from a source of apprehension, SWFs have become beneficiaries of fiscal incentives designed to encourage investment in Europe.

Read Here – Project Syndicate

Abu Dhabi’s New $125 Billion Sovereign Fund Is Taking Shape

Pakistan’s Economy Is A Pleasant Surprise

Pakistan’s improvement matters because, with approximately 200 million people, it is the sixth most populous country in the world. It is also a nuclear power, and arguably a key to peace in the region.

Read Here – Bloomberg

Nine Economic Lessons From 2016

Had there been no financial crisis in 2007/08 with all the consequences that came with it, the economic outcomes—and, therefore, political history—of the last eight years would have been markedly different. We can talk about globalisation and income inequality until we are blue in the face, but these issues alone don’t explain what’s happening, and anyway, they pre-date the Lehman bust.

Read Here – Prospect

Markets Are Going To Roil Next Year

The sheer range of known unknowns for 2017 — the outlook for China’s economy, the effect of populism on European politics, the scattergun policy-making of president-elect Donald Trump — makes a low level of uncertainty unlikely to persist.

Read Here – BloombergView

Dealing With A Reluctant Power

China is a disruptive power but not a revolutionary one. Its size, wealth, and assertive foreign policy lead it to demand significant changes to existing institutions, but it does not seek to overturn the current international order wholesale.

Read Here – Foreign Affairs

Trump’s Wolves Of Wall Street

The idea that being a banker is an alluring characteristic for a member of the Trump Administration is a startling change. For months, Trump criticised Hillary Clinton for giving paid speeches to banks like Goldman Sachs.

Read Here – The New Yorker

Also read:

Donald Trump and the New Economic Order

 

Trump And The Political Economy Of Liquidity Traps

Escaping the liquidity trap means engineering a dramatic rise in expectations for future demand growth. It means a clear departure from past practice: a regime change. And whether the tool used to engineer the shift in expectations is monetary or fiscal, it cannot occur without strong political support.

Read Here – The Economist

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