International Economics
237 views | +0 today
Follow
Your new post is loading...
Your new post is loading...
Scooped by Neil Codd
Scoop.it!

UK’s current account deficit is worrying – and Osborne has no strategy to fix it

UK’s current account deficit is worrying – and Osborne has no strategy to fix it | International Economics | Scoop.it
Larry Elliott: The chancellor has pledged to cut the budget deficit, but lacks a plan for dealing with Britain’s other deficit now at 6% of GDP
more...
No comment yet.
Scooped by Neil Codd
Scoop.it!

New Statesman | Salmond's plan to use the pound without permission would be dangerous for Scotland

New Statesman | Salmond's plan to use the pound without permission would be dangerous for Scotland | International Economics | Scoop.it
Scotland would be left with no central bank, no lender of last resort and no control over its interest rates, and would breach EU membership conditions.
Neil Codd's insight:

The UK wouldn't be able to stop Scotland using the pound but it could make it unpleasant (and in doing so harm a major trading partner and therefore unpleasant for the UK). Too obvious to be the topic for unit 4 paper 2015? Too early for me to be thinking of this? A "no" vote would make it a topic that would seem outdated I suppose. Anyway interesting stuff!

more...
No comment yet.
Scooped by Neil Codd
Scoop.it!

Bali trade agreement: WTO set the bar high but has achieved little

Bali trade agreement: WTO set the bar high but has achieved little | International Economics | Scoop.it
The Doha Development Round was launched 12 years ago and it was a classic case of the World Trade Organisation biting off more than it could chew
Neil Codd's insight:
Guardian analysis of the Bali deal with links to arguments for and against
more...
No comment yet.
Scooped by Neil Codd
Scoop.it!

It's so hard to say good bye

It's so hard to say good bye | International Economics | Scoop.it
THIS time next year, the question of Scottish independence will be decided. New research published by the National Institute of Economic and Social Research,...
Neil Codd's insight:

Another Scotland and currency choice article.

more...
No comment yet.
Scooped by Neil Codd
Scoop.it!

Currency wars, playground style

Currency wars, playground style | International Economics | Scoop.it
The independence debate took a bizarre turn last week as the two sides reversed roles.
Neil Codd's insight:

Should Scotland have its own currency or should it keep the £ if it becomes independent? There should be some comment on this in tomorrow's papers; here is a comment piece from a few days ago to wet the appetite. Good essay topic for Year 13 homework this week....

more...
No comment yet.
Rescooped by Neil Codd from CLSG Economics: Macroeconomics
Scoop.it!

Those Depressing Germans

Those Depressing Germans | International Economics | Scoop.it
They are beggaring their neighbors, and the world, by running big trade surpluses.

Via Lucy Balazs
Neil Codd's insight:

Thanks Lucy, important for Year 13s, similar to essays last week and useful for euro lessons next week

more...
No comment yet.
Scooped by Neil Codd
Scoop.it!

A superpower at risk of slippage - FT.com

A superpower at risk of slippage - FT.com | International Economics | Scoop.it
It has been 10 days since the US government shutdown came to an end.
more...
No comment yet.
Scooped by Neil Codd
Scoop.it!

Get your fiscal house in order: China warns US as Asia expresses concern for $1.3tn of investments

Get your fiscal house in order: China warns US as Asia expresses concern for $1.3tn of investments | International Economics | Scoop.it
China, the biggest foreign creditor of the United States, has waded into the American budget crisis, warning Congress that it must resolve the political impasse over the debt ceiling without further delay.
Neil Codd's insight:

The worries China have are partly a result of having a large current account surplus.  A large surplus is perhaps just as bad as a large deficit. Imagine working really hard, saving your income and then you lose your savings. Wouldn't you rather have lived beyond your means for a while as happens when you have a defict? (Perhaps not!)

more...
No comment yet.
Scooped by Neil Codd
Scoop.it!

America’s Endless Budget Battle by Kenneth Rogoff - Project Syndicate

America’s Endless Budget Battle by Kenneth Rogoff - Project Syndicate | International Economics | Scoop.it
Perhaps investors are becoming inured to America's annual debt-ceiling debacle, now playing out for the third year in a row. But, as the short-term antics become more routine, the risks of long-term dysfunction become more apparent.
Neil Codd's insight:
The advantage to the US of being the reserve currency is in excess of $100 billion per year in terms of lower interest payments (the cost would be a difficult to correct trade deficit as a result of low interest encouraging spending and a strong currency allowing imports to satisfy high consumption). Perhaps the dollar's reserve currency status is under threat as this article explains. Read it and consider the consequences.
more...
No comment yet.
Rescooped by Neil Codd from CLSG Economics: International Economics
Scoop.it!

Currency manipulation should be part of trade talks, Senators say - FT.com

Currency manipulation should be part of trade talks, Senators say - FT.com | International Economics | Scoop.it
A bipartisan majority of the US Senate demanded that US President Barack Obama address “currency manipulation” in trade negotiations with 12 Pacific nations, throwing up a potential roadblock as the talks approach their final stages.

Via Eliza Haydon
Neil Codd's insight:

"To put [currency] in trade agreements looks to me like sending someone to a podiatrist for a heart attack" Thanks Eliza, great follow up to our class' discussion.  Fed's loose monetary policy could count as currency manipulation as article says, something we didn't mention in class.

more...
No comment yet.
Scooped by Neil Codd
Scoop.it!

EconoMonitor : EconoMonitor » Currency Wars Revisited: The Charts Approach

EconoMonitor : EconoMonitor » Currency Wars Revisited: The Charts Approach | International Economics | Scoop.it
Economic analysis, discussion and debate.
Neil Codd's insight:

"While a country can buy some time with a cheaper currency, in the end it will turn against it and the wasted time without structural reforms will be a factor weighing down its growth potential". Making this point with year 13s this week, China manipulating currency only ever going to be a short term boost, issue exaggerated for political capital in USA

more...
No comment yet.
Scooped by Neil Codd
Scoop.it!

Sabres rattled and ready

Sabres rattled and ready | International Economics | Scoop.it
FOR months, it had looked as though a trade war might break out between the EU and China. The catalyst, it appeared, was the determination of the European Commission...
Neil Codd's insight:

Year 13s will be evaluating whether anti-dumping measures and retaliation are justifiable reasons for protectionism.  We will use this case study.

 

Is dumping all bad? Isn't dumping equivalent to a foreign government giving wealth to your consumers? We might also look at the EU dumping products on Africa - Senegal tomato producers suffer but perhaps Congolese consumers of bread benefit? Short run v. long run?

more...
No comment yet.
Scooped by Neil Codd
Scoop.it!

World Trade Organisation’s Pascal Lamy defends Doha talks round - FT.com

World Trade Organisation’s Pascal Lamy defends Doha talks round - FT.com | International Economics | Scoop.it
The late afternoon thunderclaps over Lake Geneva have dissipated but what began as an optimistic and sunny summer day has turned into a muggy grey drizzle.
Neil Codd's insight:
This is a great article for beginning to understand how the WTO works and also has some interesting facts that might be useful for an essay. It refers to the Doha round, we will talk about this a lot in unit 4 lessons, it refers to talks that have been happening since 2001 to make trade rules more beneficial for poor countries. The stat about Cambodia shows why poor countries could benefit from a successful conclusion of the Doha talks. It is interesting to note that Lamy is sceptical about the success of the big potential bilateral deals that could occur over the next two years or so and that he also points out that not tariff barriers are particularly damaging for trade (see earlier Scoops). However he has an incentive to make countries pessimistic about bilateral deals - it would make them more willing to make "multilateral" deals like the Doha round work. Also, a good evaluation point about the merits of a devaluation for exporters in a country - many exporters rely on significant imports of component parts so a devaluation would add costs as well as potentially boosting revenue
more...
No comment yet.
Scooped by Neil Codd
Scoop.it!

New Statesman | The best currency for an independent Scotland would be Norway’s kronor

New Statesman | The best currency for an independent Scotland would be Norway’s kronor | International Economics | Scoop.it
If Scotland votes for independence, it will create a completely different economic context for the two new countries that emerge.
Neil Codd's insight:

Perhaps Scottish independence will make London and Berlin an optimal currency area, Edinburgh and Oslo another...interesting!

more...
No comment yet.
Scooped by Neil Codd
Scoop.it!

Joseph E. Stiglitz says that the Europe will not recover unless and until the eurozone is fundamentally reformed. - Project Syndicate

Joseph E. Stiglitz says that the Europe will not recover unless and until the eurozone is fundamentally reformed. - Project Syndicate | International Economics | Scoop.it
It has been three years since the outbreak of the euro crisis, and only an inveterate optimist would say that the worst is definitely over. It is not, and it won't be unless and until the eurozone's structure is fundamentally reformed.
more...
No comment yet.
Scooped by Neil Codd
Scoop.it!

WTO agrees global trade agreement

WTO agrees global trade agreement | International Economics | Scoop.it
Neil Codd's insight:
A deal is done at the WTO!!! BBC summary here is good. Important evaluation example of the problem with multilateralism was failure of Doha, as this explains, Doha agenda not fully complete but progress has been made. Also NB, pro traders saying it is good for poor and others saying it is bad.
more...
No comment yet.
Scooped by Neil Codd
Scoop.it!

What does independence even mean for Scotland? - FT.com

What does independence even mean for Scotland? - FT.com | International Economics | Scoop.it
There are only ten months left before Scots vote in a referendum on national independence.
Neil Codd's insight:

Alstair Darling explains why every currency option is a bad idea for an independent Scotland, in other word independence is a bad idea!

more...
No comment yet.
Scooped by Neil Codd
Scoop.it!

What prospects for a WTO deal in Bali? | vox

What prospects for a WTO deal in Bali? | vox | International Economics | Scoop.it
Neil Codd's insight:

A-level students need not worry about the precise details of Doha round negotiations but they should have a sense of the effectiveness of the WTO and whether bilateral deals help or hinder. The start and end of this article helps, Bali could be a good example to refer to so keep an eye on what happens.

more...
No comment yet.
Scooped by Neil Codd
Scoop.it!

Can China save the world by consuming more? | vox

Can China save the world by consuming more? | vox | International Economics | Scoop.it
Neil Codd's insight:

Article three years old but still very relevant. Just discovered via a student copying and pasting a chunk in their essay! Global rebalancing

more...
No comment yet.
Scooped by Neil Codd
Scoop.it!

The Dollar and the Debt Ceiling by Barry Eichengreen - Project Syndicate

The Dollar and the Debt Ceiling by Barry Eichengreen - Project Syndicate | International Economics | Scoop.it
Sane governments do not default when they have a choice, especially not when they enjoy the “exorbitant privilege” of issuing the only true global currency. We are about to find out whether the US still has a sane government.
Neil Codd's insight:

What would happen if the US dollar stopped being the reserve currency?

more...
No comment yet.
Scooped by Neil Codd
Scoop.it!

Say no to protectionism

Say no to protectionism | International Economics | Scoop.it

Current affairs, world politics, the arts and more from Britain's award-winning magazine

Neil Codd's insight:

An old article that has stuck in my mind. Yes there are losers from free trade but this means we should look after the losers rather than go for protectionism. After all the aggregate winnings will out weigh the losses. Why are US voters often pro protectionist? Perhaps because the USA lacks the social safety nets that help redistribute the gains from the winners (exporters and consumers)  to the losers.

more...
No comment yet.
Scooped by Neil Codd
Scoop.it!

Why More Migration Makes Sense by Geoffrey Cameron and Ian Goldin - Project Syndicate

Why More Migration Makes Sense by Geoffrey Cameron and Ian Goldin - Project Syndicate | International Economics | Scoop.it
In almost every rich country, anti-immigrant fervor is at fever pitch. But it is a malady that must be resisted if these societies are to continue to prosper and developing countries are to fight poverty sustain economic growth.
Neil Codd's insight:
I have had this debate with quite a few students over the past eight years. There are merits of having no migration barriers. Admittedly it might not be sensible to be the only country with no migration borders but if everyone reduced migration controls at the same time....have a read and see what you think.
more...
No comment yet.
Scooped by Neil Codd
Scoop.it!

Should losers from free trade be compensated? - William J. Polley

Neil Codd's insight:

Great discussion about allocative efficency and whether it is ethically right to support free trade

more...
No comment yet.
Rescooped by Neil Codd from CLSG Economics: Macroeconomics
Scoop.it!

EU ready for talks with China on pact paving way for free trade


Via Alice Lin
Neil Codd's insight:

Lately the EU and China have been falling out over solar panels, more friendly noises between the two now

more...
No comment yet.
Scooped by Neil Codd
Scoop.it!

The protectionism that wasn't

The protectionism that wasn't | International Economics | Scoop.it
“WHEN it comes to international trade, actually it’s not the Great Depression, it’s worse.” So said Paul Krugman in 2009. Global markets were certainly...
Neil Codd's insight:

Trade figures are above their pre-crisis levels and thanks to the world not becoming too protectionist.

more...
No comment yet.