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Archive for the tag “financial markets”

Containing The Dollar Credit Crunch

As the full implications of the COVID-19 pandemic have slowly become clear, private liquidity has begun to drain out of global markets. As a result, the record-high level of dollar-denominated debt held by non-banking entities outside of the United States has become a problem that central banks simply cannot ignore.

Read Here – Project Syndicate

Trump Reboots To Confront The Coronavirus

It was a somber Donald Trump who spoke at the White House today to declare a “national emergency” and that “we’re doing a great job.” Gone was his language about exaggerated fears and a “hoax” surrounding the coronavirus. His own daughter, Ivanka, stayed home rather than visit the White House because of her exposure to an Australian official who has the coronavirus.

Read Here – The National Interest

The New-Old Threat To Economic Freedom

With politicians proposing policies that would vastly expand the size of the government and its involvement in the economy, it is clear that too many Americans have forgotten the lessons of the twentieth century. As Friedrich Hayek and Milton Friedman pointed out long ago, deviating from market principles is a recipe for disaster.

Read Here – Project Syndicate

The White Swans Of 2020

Financial markets remain blissfully in denial of the many predictable global crises that could come to a head this year, particularly in the months before the US presidential election. In addition to the increasingly obvious risks associated with climate change, at least four countries want to destabilise the US from within.

Read Here – Project Syndicate

Adapting To A Fast-Forward World

The world is going through a period of accelerating change, as four secular developments illustrate. Firms and governments must make timely adjustments, not only to their business models and operational approaches, but also to both their tactical and strategic mindsets.

Read Here – Project Syndicate

Recession, Robots And Rockets: Another Roaring 20s For World Markets?

Helicopter cash, climate crises, smart cities and the space economy — investors have all those possibilities ahead as they enter the third decade of the 21st century. They go into the new decade with a spring in their step, after watching world stocks add over $25 trillion in value in the past 10 years and a bond rally put $13 trillion worth of bond yields below zero.

Read Here – Reuters

Debt Looks Like The ‘New Normal’ For The Global Economy – Until The Next Crisis

In the “new normal” economic world, many beliefs have been turned on their head. Trade wars supposedly  do not cause lasting harm, declining corporate output, earnings and investment are no cause for alarm, stock prices can go on rising regardless, and record global debt is nothing to lose sleep over.

Read Here – South China Morning Post

Why Financial Markets’ New Exuberance Is Irrational

Owing to a recent easing of both Sino-American tensions and monetary policies, many investors seem to be betting on another era of expansion for the global economy. But they would do well to remember that the fundamental risks to growth remain, and are actually getting worse.

Read Here – Project Syndicate

The Anatomy Of The Coming Recession

Unlike the 2008 global financial crisis, which was mostly a large negative aggregate demand shock, the next recession is likely to be caused by permanent negative supply shocks from the Sino-American trade and technology war. And trying to undo the damage through never-ending monetary and fiscal stimulus will not be an option.

Read Here – Project Syndicate

The G-Minus-2 Threat

The US-dominated G1 world is long gone, and the G2 system in which America and China shared hegemonic responsibilities is now fading into memory. In today’s G-minus-2 world, US and Chinese policies threaten to have devastating consequences for the global economy.

Read Here – Project Syndicate

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