Tag Archives: macroeconomics

Zoellick on China’s choices

A discursive account by Greg Sheridan in The Australian of a conversation with World Bank President Robert Zoellick on, among other things, China’s development conundrum and the growth of emerging economies as an antidote to pessimism. Zoellick has a team of World Bank economists working closely with the Chinese leadership to help them move on […]

China faces an historic choice

Their customers’ economies teetering on the edge of what may be a prolonged period of low-growth signals that the time has arrived for China to accelerate a long-forseen transition in its own growth strategy; from export-demand driven to domestic-demand driven. But can the Beijing leadership do it? Now? Does it have the policy flexibility that […]

The tough go shopping

Can you really doubt that the Australian economy will resume its recent strong growth in a year or so? Are you worried that the rapid accumulation of wealth in the vast, still-poor economies of China, India and central Asia might be about to suddenly stop? Do you fear that Australian firms will never again be […]

Standard and Poor’s reasons

It’s difficult to argue with the Standard & Poor’s assessment of the U.S. fiscal outlook, or with their downgrade of the U.S. long-term sovereign credit rating: We lowered our long-term rating on the U.S. because we believe that the prolonged controversy over raising the statutory debt ceiling and the related fiscal policy debate indicate that […]

Treasury’s advocacy of a CO2 tax

One thing on which I agree with Julia Gillard is the poor quality of many journalists’ analysis of her proposals. But when you cram journalists with nonsense, you must expect some of them to regurgitate it from time to time. “In theory, this is an ingenious model for adapting our fossil fuel economy to global […]

A quick primer on exchange policy

On their own, threats of sanctions seem unlikely to move China. A “trade war” — say, a massive, bilateral, retaliatory hike in trade barriers between the USA and China — is a nuclear option in an era of global supply and production integration. Surely it’s a bluff because, inthe incandescent lyrics of Tom Lehrer: “We […]

Trade ‘imbalances’ are misleading

Alexandro Jara, the Deputy Director-General of WTO “[R]elying on conventional trade statistics gives a distorted picture of trade imbalances between countries. As we saw when looking at the Chinese content of the iPad, what counts is not the imbalances as measured by gross values of exports and imports, but how much valued added is embedded […]