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 – 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 […]