In The News

Arvind Subramanian February 23, 2017
The World Trade Organization, a multilateral trade group with 164 members, has been marginalized in recent years due to increasing preference for bilateral and regional deals, explains Arvind Subramanian, chief economic adviser to the government of India in an essay for Project Syndicate. He points to three developments that could prompt the world to reconsider multilateralism and revive the WTO...
Benn Steil and Emma Smith February 21, 2017
Macroeconomic theory predicts that indebted countries have negative net foreign investment income, while creditor countries have positive flows. The US and China, however, are bucking the trend due to the idiosyncratic natures of both their currencies and governments. One element is China’s willingness, and the world writ large, to accept low returns on the dollar in exchange for stability. About...
Anthony Fensom February 13, 2017
Leaders of Japan and the United States, the leading economies that had negotiated the 12-nation Trans-Pacific Partnership, announced plans to pursue stronger bilateral ties. “Importantly, the joint statement also allowed for Japan to continue pursuing the TPP, even after [Donald] Trump’s January 23 decision to withdraw,” reports Anthony Fensom for the Diplomat, adding that Japan has invested more...
Nathan Gardels January 13, 2017
China is preparing to take a leading role on the world stage as the US president-elect dismisses worries about climate change and the benefits of globalization. The rhetoric about an “America first” policy suggests that the United States could reverse US stances on global trade and climate change. Europe is in disarray, too. Some world leaders are avoiding the World Economic Forum in Davos this...
Gary Pinkus, James Manyika and Sree Ramaswamy January 10, 2017
Global flows of trade and investment add economic value, and dismantling systems that rely on globalization would reduce prosperity. “While the impulse to erect trade barriers is understandable given the pain experienced by workers in a range of industries and communities in recent years, it is not the way to create lasting growth and shared prosperity,” notes a Harvard Business Review article. “...
Harold James January 4, 2017
Trade, automation and other facets of globalization have eliminated some careers. One solution is for government to provide an unconditional basic income, but that may not eliminate resentment. Historian Harold James examines how artisans recovered after losing work during the Industrial Revolution of the 18th and 19th centuries: “many displaced workers emigrated – often long distances across...
Panos Mourdoukoutas January 4, 2017
Globalization has delivered many benefits to those living in the United States and elsewhere around the globe: Panos Mourdoukoutas offers a quick summary: “It has helped America win the war on communism. It has freed Americans from government regulations and militant unions. It has assigned America the role of the world’s best innovator. It has helped America sustain its lead as the world’s...