Monthly Archives: May 2010

Chinese wage pressures

Straws in the wind? “For­eign investors are under pres­sure to increase wages as the country’s man­u­fac­tur­ing sec­tor shakes off the effects of the glob­al finan­cial cri­sis.” Extract from FT.com — Strike forces Hon­da to shut Chi­nese plants

Positions diverge on Doha negotiations

Anoth­er cold show­er for WTO: last week’s attempt in Gene­va to sketch out some ‘com­mon ground’ failed. Nation­al nego­ti­at­ing teams were said to be shocked (yes, ‘shocked’) by the size of the gaps between nation­al posi­tions. “… nine years into the mul­ti­lat­er­al trade talks, it remains unclear whether the invi­o­lable ‘red lines’ of promi­nent WTO […]

Did the ‘stimulus’ work?

In the bud­get papers (Box 4 of Bud­get Paper No.2) , the Trea­sury says that there is robust sta­tis­ti­cal evi­dence from the IMF that the economies apply­ing the stim­u­lus expe­ri­enced an upside growth sur­prise of 3.3 per­cent for every addi­tion­al 1 per­cent of GDP devot­ed to fis­cal stim­u­lus. But they made this up, as Sin­clair […]

Failure of the ‘Third Way’

John Kay describes Gor­don Brown as a “redis­trib­u­tive mar­ket lib­er­al, hold­ing, like oth­er adher­ents of Blair’s ‘Third Way’, that …[t]he eco­nom­ic role of gov­ern­ment should be lim­it­ed and con­fined to a short list of issues described as mar­ket fail­ures. Redis­trib­u­tive mar­ket lib­er­als believe, how­ev­er, in a big role for the state in review­ing the dis­tri­b­u­tion […]

Resources tax mess

Hen­ry Ergas explains what’s wrong with the Brown­ian ‘Resources Super Prof­its Tax’ (apart from the appalling, ide­o­log­i­cal snip­ing at for­eign investors). “Unfor­tu­nate­ly, we have a long his­to­ry in this coun­try of inter­ven­tions that, were they capa­ble of per­fect imple­men­ta­tion, might increase wel­fare. Typ­i­cal­ly, when real­i­ty hits, they have the oppo­site effect. The sci­en­tif­ic tar­iff, which […]