Tensions with North Korea have been escalating in recent months. The regime has tested missiles and claims to be capable of building nuclear warheads, and thus there is rising concern about an American military response.
Park Geun-hye’s ouster as president of South Korea was due to a scandal involving her close confidant accused of seeking bribes from chaebols, a group of family-owned multinational conglomerates that dominate the economy.
At last month’s NATO meetings, President Trump called the Germans “bad” for running trade surpluses with the US, causing a minor international incident. Although such incidents come and go, it did generate a more serious question…are German policies causing problems for the world? In this report, we review the saving identity we introduced in last month’s series on trade and discuss how Germany has built a policy designed to create saving. We discuss the Eurozone and the impact that German policy has had on the single currency. Lastly, we address the question posed in the title of this report.
This is the final report of our four-part series on trade. This week, our discussion on trade continues with a look at the relationship between trade, employment and inflation. We also conclude the series with market ramifications.
In this multi-part report, we offer reflections on trade to provide insight into how to use macroeconomics to judge the veracity of certain claims.
In this multi-part report, we offer reflections on trade to provide insight into how to use macroeconomics to judge the veracity of certain claims. In Part I, we laid out the basic macroeconomics of trade. In Part II, we discuss the impact of exchange rates and examine the two models of economic development, the Japan Model and American Model.
The general consensus among economists is that free trade makes the economy more efficient and supports global stability, but the steady erosion of US manufacturing jobs and the shrinking middle class have called this view into question.
Last week, we began our retrospective on the EU. This week we will examine the post-Cold War expansion of the EU, including a discussion of the creation of the euro and the Eurozone. With this background, we will analyze the difficulties the EU has faced in dealing with the problems caused by the 2008 Financial Crisis.
On March 25, EU leaders gathered in Rome to celebrate the 60th anniversary of the organization’s founding. The EU’s primary goal was to prevent another world war from being fought on European soil. The key to meeting this goal was to solve the “German problem.”
February 12th was the 100-year anniversary of the Russian Revolution. Surprisingly, the Kremlin has taken a very low-key stance on the centenary. We believe the government’s decision to downplay this historical event offers an insight into Russian President Putin’s thinking.