International Economics: IB Economics

Barry Eichengreen celebrates the return of activist intervention, and a pro-active role for government in formulating industrial policy, with the introduction of the Inflation Reduction Act, Infrastructure Investment and Jobs Act and Chips and Science Act.

However, he also warns that there's not unlimited grounds for intervention and that when it comes to the award of subsidies, there's a need for independent assessment of the relevant sectors, and that then poses all sorts of question about how this 'independence' is ensured and an appropriate candidate chosen. 

This weekend's Business leaders are all excellent: all well worth a read, particularly the first which looks at the strained relationship between President Trump and the Chair of the Federal Reserve, Jerome Powell. 

That said, the other two vignettes - on Saudi Arabia and oil prices, and, above inflation rail price increases - are also deserving of your interest.

I'll put this here - it doesn't strike me as mainstream UK macroeconomics, but it is an interesting assessment of what economic policy might look like in an independent Scotland, in the wake of figures re-emphasising the extent to which the Scots are 'subsidized' by Westminster.

Indeed, the notional Scottish budget deficit is 8.6% of GDP - so what are the policy options that might accompany an independent Scotland. Modern monetary theory makes an appearance...