In The News

Claudi Pérez December 6, 2017
The European Union is proposing its own version of a bailout fund modeled after the International Monetary Fund. “With initial firepower of €500 billion, which could be boosted up to a further 20%, the new European Monetary Fund will bail out member states in exchange for reforms, as the European Stability Mechanism (ESM) has done in the past with Greece, Ireland and Portugal,” reports El País....
November 17, 2017
Some factories in China are paying workers to stay home, part of a plan to ease the nation’s serious debt levels – which has grown nearly fivefold over the past decade to $29 trillion today. “The debt, equivalent to 260 per cent of gross domestic product, has brought with it dramatic declines in credit efficiency,” explains the Financial Times. “The International Monetary Fund points out that in...
Mohamed A. El-Erian September 19, 2017
The current global economic order is under strain, and the World Bank and the International Monetary Fund could pursue reforms and take steps to adjust to new economic realities, preventing disintegration and disorder, argues Mohamed A. El-Erian for Project Syndicate. The current order is rooted in “an economic paradigm that aimed to promote win-win interactions among countries, emphasizing trade...
Jonathan Gregson August 5, 2017
After years of stagnation, international trade growth is anticipated at 4 percent this year. “Many factors could explain what appears to be a secular decline in global trade: lower levels of business confidence and investment; demand cycles and their impact on commodity prices; the maturing of global value chains, which have in turn triggered structural changes in the composition of cross-border...
August 3, 2017
As the old saying goes, everyone pays the cost of crime. Costs include direct losses and indirect regulations. The Economist explains that banks are “lending less and shedding customers” due to “strict new rules on capital and liquidity” and avoiding high-risk customers and sectors. Poorest nations are most affected. “Banks in Africa, eastern Europe, Latin America and the Caribbean have been...
Alexander Jung July 8, 2017
A growing global economy expanded the middle class and wealth for many nations that were once poor. That is of little comfort to the 800 million people who live in extreme poverty. Widening inequality and climate change are serious threats. “The G-20 nations represent two-thirds of the global population, just over three-quarters of its economic output and four-fifths of its greenhouse gas...
June 14, 2017
Bitcoin is a digital currency with algorithms used for ownership and trades. Security depends on the secrecy of those algorithms. A purchase of $100 worth of bitcoin in July 2010 would be worth about $4.6 million today. Overall market value of such currencies is about $80 billion. An article from the Economist questions bitcoin’s sustainability and whether the currency is more like gold or 17th...