International Economics: IB Economics
16.0K views | +3 today
 
Scooped by Graham Watson
onto International Economics: IB Economics
April 11, 5:07 AM
Scoop.it!

US inflation jumps to highest level in almost two years

US inflation jumps to highest level in almost two years | International Economics: IB Economics | Scoop.it
From www.bbc.co.uk - April 10, 8:38 AM
A surge in prices at the pump due to the Iran war has pushed the inflation rate to 3.3%.
Read more
Graham Watson's insight:

The US reaps the benefits of the President's latest foreign policy adventure, with the rise in oil prices filtering through to US fuel prices, and inflation picking up, from 2.4% last month to 3.3% this month. 

 

Oh dear. What a shame! However, there's general discontent about this, and there's also caution from the Federal Reserve, who were quick to label the post-Ukraine spike in inflation as "transitory" when it actually took longer than expected to subside. 

more...
No comment yet.
Sign up to comment
International Economics: IB Economics
Economy
A collection of articles relating to the 'international' elements of Economics and relating to IB, Pre-U and A-Level Economics.
Curated by Graham Watson
Your new post is loading...
Your new post is loading...
Scooped by Graham Watson
Today, 9:07 AM
Scoop.it!

UAE to quit Opec in blow to oil exporters’ cartel | Opec | The Guardian

UAE to quit Opec in blow to oil exporters’ cartel | Opec | The Guardian | International Economics: IB Economics | Scoop.it
From www.theguardian.com - Today, 8:59 AM
Big win for Donald Trump, who has accused organisation of ‘ripping off the rest of the world’ by inflating oil prices
Read more
Graham Watson's insight:

Wow! This could perhaps be the most significant economic effect of the Iran war, with the United Arab Emirates announcing that it intends to quit OPEC (the Organisation of Petroleum Exporting Countries), the cartel which plays a major role in determining global oil prices by establishing production quotas.

 

The UAE has been an OPEC member since 1967, but argues that leaving OEPC gives it greater flexibility as well as having negligible effect on the market in the immediate term. Longer-term it would allow the country to increase production calling into question the sustainability of the cartel going forward. 

more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
April 27, 3:22 AM
Scoop.it!

How climate change threatens the economic backbone of the Pacific

How climate change threatens the economic backbone of the Pacific | International Economics: IB Economics | Scoop.it
From www.bbc.co.uk - April 26, 7:16 PM
Tuna populations around the Pacific Islands could move away as ocean temperatures increase.
Read more
Graham Watson's insight:

This BBC article highlights the very real costs of climate change for the Pacific islands of Kiribati, with the prospect of higher sea temperatures driving tuna away from the islands and reducing the revenues earned from selling fishing licenses. It's a stark reminder of how reliant some states are on one commodity, how this may represent a barrier to development. 

more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
April 25, 2:19 AM
Scoop.it!

China car giant BYD says it can thrive without access to US market

China car giant BYD says it can thrive without access to US market | International Economics: IB Economics | Scoop.it
From www.bbc.co.uk - April 24, 5:25 PM
With the price of fuel rising China's BYD says it is positioning itself to benefit from the global shift away from fossil fuels.
Read more
Graham Watson's insight:

A demonstration of lots of themes: shifting economic gravity, the green transition, the drawbacks of tariffs and the lack of innovation from established car manufacturers. However, in this article China's BYD are bold in effectively announcing that they don't need access to US markets to thrive: and they're right.

 

China is the world's largest market and with other economies growing why would they want to pay high tariffs to gain access to US market when they're already in a situation where demand for their cars outstrips supply at the current price. 

 

And for America? Less choice and higher priced electric vehicles, which, if they ever want to take climate change seriously, they'll need to adopt at some point, and at the moment they're losing ground to Chinese manufacturers. economic grq

more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
April 22, 2:59 PM
Scoop.it!

Why Trump’s pick for Fed chair will not bring home the bank for the president | US economy | The Guardian

Why Trump’s pick for Fed chair will not bring home the bank for the president | US economy | The Guardian | International Economics: IB Economics | Scoop.it
From www.theguardian.com - April 22, 5:00 AM
Kevin Warsh, Trump’s ‘central casting’, has a long road ahead of convincing board members to lower interest rates
Read more
Graham Watson's insight:

President Trump seems to think that the Governor of the Federal Reserve can unilaterally set interest rates. If this is the case, then - as is not uncommon - he over-estimates the power of the individual.

 

As this article points out, Kevin Warsh might seem like the President's patsy, but this might not be the case. It even argues that Warsh's damascene conversion from inflation hawk to inflation dove might have a degree of validity if AI can deliver significant productivity gains. However, the uncertainty associated with the Trump regime won't make his job easier. However, even then to changing interest rates requires a majority of the board members to vote for it, and whilst two of them are Trump appointees, the other five aren't. 

more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
April 20, 1:57 PM
Scoop.it!

Trump administration begins refunding more than $166bn in tariffs | Trump tariffs | The Guardian

Trump administration begins refunding more than $166bn in tariffs | Trump tariffs | The Guardian | International Economics: IB Economics | Scoop.it
From www.theguardian.com - April 20, 11:02 AM
Claims system launches months after supreme court ruled Trump had no legal authority to impose tariffs
Read more
Graham Watson's insight:

The Trump administration has established a digital platform to refund tariff revenue to some of the affected parties, although, as the article notes "The only companies legally eligible to claim are those that officially paid the tariffs – predominantly importers and large corporations. The broader population who absorbed the cost through higher prices on everything from electronics to clothing has no direct recourse."

 

In short, it's up to individual corporations to decide what they are going to do with the refunded money, with consumers not overly impressed by those who have said that they are going to use the refund to offer cheaper price going forward. 

more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
April 19, 5:54 AM
Scoop.it!

How the Iran War Revealed a Truth About Gas

From www.youtube.com - April 17, 4:00 AM

As supply disruptions and infrastructure damage tied to the US-Israel war with Iran ripple across the global economy, countries are being forced to find alternatives to natural gas, potentially reshaping the future of energy.

Read more
Graham Watson's insight:

This Bloomberg clip looks at the implications of the Iran conflict for the global economy, via the effects of the war on the supply of liquified natural gas (LNG). 

 

The Iranian attack on the Qatari Ras Laffan Industrial City has significantly reduced the ability of the plant to supply LNG, and this has implications for those economies that have pivoted towards LNG, and the other goods that are dependent upon a steady supply of the gas. 

more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
April 17, 5:25 AM
Scoop.it!

I want to reform our country because a strong Germany is a precondition for a strong Europe | Lars Klingbeil | The Guardian

I want to reform our country because a strong Germany is a precondition for a strong Europe | Lars Klingbeil | The Guardian | International Economics: IB Economics | Scoop.it
From www.theguardian.com - April 17, 12:00 AM
The war in Iran has exposed our dependencies. Europe, including the UK, must be bold about change, so nobody can blackmail us, says Lars Klingbeil, Germany’s finance minister and vice-chancellor
Read more
Graham Watson's insight:

Crikey! The German Finance Minister, and Vice Chancellor, Lars Klingbeil, writes in the Guardian about the need to reform the Germany economy - he highlights both exogeneous factors that affect the economy, the need for infrastructure improvements and a relaxation of the debt brake, a fiscal tool which limits the ability of the government to run a budget deficit to finance capital expenditure. Other reforms proposed include a reform of childcare, making the tax system more progressive and increasing labour market flexibility to encourage more female participation. 

more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
April 17, 4:48 AM
Scoop.it!

Cuts to overseas aid will worsen shocks to global economy, David Miliband says | David Miliband | The Guardian

Cuts to overseas aid will worsen shocks to global economy, David Miliband says | David Miliband | The Guardian | International Economics: IB Economics | Scoop.it
From www.theguardian.com - April 17, 1:00 AM
Exclusive: Former UK foreign secretary says poor and rich countries alike will be hit amid humanitarian crisis sparked by Iran war
Read more
Graham Watson's insight:

The former Foreign Secretary, David Miliband writes in the Guardian about the implications of cuts in overseas aid for the global economy. Unsurprisingly, he suggests that any reduction in aid is going to reduce the resilience of the some of the world's most vulnerable economies. 

more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
April 16, 4:32 AM
Scoop.it!

China's hits economic growth target despite Iran war disruption

China's hits economic growth target despite Iran war disruption | International Economics: IB Economics | Scoop.it
From www.bbc.co.uk - April 15, 10:29 PM
The better-than-expected GDP data comes as Asian countries have been hit hard by the impact of the conflict.
Read more
Graham Watson's insight:

Whatever the state of the global economy, there's always China reporting better-than-expected GDP data. The Chinese economy grew by 5% in the last quarter, despite both the Iran war and 10% US tariffs and relatively low export growth of 2.5%.

 

Perhaps the largest contributory factor to this is the fact that China isn't as reliant upon the Middle East for its oil to the same extent that other Asian economies are.  

more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
April 14, 9:19 AM
Scoop.it!

Iran war escalation could trigger global recession, IMF warns | Global economy | The Guardian

Iran war escalation could trigger global recession, IMF warns | Global economy | The Guardian | International Economics: IB Economics | Scoop.it
From www.theguardian.com - April 14, 9:00 AM
UK suffers sharpest downgrade and is predicted to face joint highest inflation in G7 as growth forecasts are cut
Read more
Graham Watson's insight:

Obviously the implications of the ongoing Iran conflict also affect the global economy, with the IMF forecasting a worst case scenario, based on the premise of the oil price remaining above $110 into 2027. 

 

Under these circumstances, they can see the global economy tipping into recession. 

more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
April 13, 5:16 AM
Scoop.it!

Trump’s new budget ignores dying Americans and gives away record sums to the US military | Trump administration | The Guardian

Trump’s new budget ignores dying Americans and gives away record sums to the US military | Trump administration | The Guardian | International Economics: IB Economics | Scoop.it
From www.theguardian.com - April 12, 7:00 AM
President’s proposed budget slashes health department by 12% while throwing $1.5tn – a 42% increase – to the military
Read more
Graham Watson's insight:

A story from the weekend; the President has proposed a budget that illustrates a classic trade-off. In this case, it looks like the President is going to reduce health spending by 12% and significantly increase defence spending. It's the classic opportunity cost: higher spending in one area, means lower spending in another. 

more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
April 12, 8:28 AM
Scoop.it!

Task for the week: limit the fallout from biggest oil shock in decades | Richard Partington | The Guardian

Task for the week: limit the fallout from biggest oil shock in decades | Richard Partington | The Guardian | International Economics: IB Economics | Scoop.it
From www.theguardian.com - April 12, 6:37 AM
As World Bank and IMF chiefs gather in Washington, the Iran war is driving up energy prices, fuelling inflation and testing voters’ patience
Read more
Graham Watson's insight:

Richard Partington looks ahead to the IMF meetings this week in Washington noting that the ongoing oil shock is posing significant challenges to economic growth. 

 

The supply-side shock, and its effect on oil prices will have ongoing implications, not least on economic growth. But how it will all play out is anyone's guess. 

more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
April 11, 5:07 AM
Scoop.it!

US inflation jumps to highest level in almost two years

US inflation jumps to highest level in almost two years | International Economics: IB Economics | Scoop.it
From www.bbc.co.uk - April 10, 8:38 AM
A surge in prices at the pump due to the Iran war has pushed the inflation rate to 3.3%.
Read more
Graham Watson's insight:

The US reaps the benefits of the President's latest foreign policy adventure, with the rise in oil prices filtering through to US fuel prices, and inflation picking up, from 2.4% last month to 3.3% this month. 

 

Oh dear. What a shame! However, there's general discontent about this, and there's also caution from the Federal Reserve, who were quick to label the post-Ukraine spike in inflation as "transitory" when it actually took longer than expected to subside. 

more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
April 27, 3:06 PM
Scoop.it!

G7 central banks poised to hold borrowing costs amid concerns over prolonged Iran war | Inflation | The Guardian

G7 central banks poised to hold borrowing costs amid concerns over prolonged Iran war | Inflation | The Guardian | International Economics: IB Economics | Scoop.it
From www.theguardian.com - April 27, 5:30 AM
Critical week for global economy as banks expected to issue warnings over conflict driving up prices
Read more
Graham Watson's insight:

The Guardian observes that this week sees a number of central banks making interest rate decisions, with the consensus being that many, if not all of them, are going to hold borrowing costs where they are, as they wait and see what's going to happen next.

more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
April 26, 6:15 AM
Scoop.it!

‘The damage is done’: global oil crisis has changed fossil fuel industry for ever, IEA chief says | Oil | The Guardian

‘The damage is done’: global oil crisis has changed fossil fuel industry for ever, IEA chief says | Oil | The Guardian | International Economics: IB Economics | Scoop.it
From www.theguardian.com - April 24, 11:00 AM
Exclusive: International Energy Agency’s Fatih Birol, the world’s leading energy economist, also says UK should largely forgo North Sea expansion
Read more
Graham Watson's insight:

The head of the International Energy Agency, Fatih Birol fears that the Iran war signals the beginning of the end for fossil fuels, suggesting that consumers will have lost trust in the ability of the global economy to supply them without interruption. He notes that renewables represent a "no-regrets alternative", and that the implications of the war for related markets in helium, fertiliser and food are going to be long-lasting. 

more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
April 24, 2:19 AM
Scoop.it!

Trump says he will ‘probably put a big tariff on the UK’ if it doesn’t drop digital services tax | Donald Trump | The Guardian

Trump says he will ‘probably put a big tariff on the UK’ if it doesn’t drop digital services tax | Donald Trump | The Guardian | International Economics: IB Economics | Scoop.it
From www.theguardian.com - April 23, 9:35 PM
US president accuses UK of thinking it can ‘make an easy buck’ from US tech companies, weeks after warning that UK–US trade deal can be changed
Read more
Graham Watson's insight:

Oh, here he goes again, the orange blowhard...

 

President Trump has accused the UK of thinking it can 'make an easy buck' from US tech firms operating here by imposing a digital services tax on them. As a result, he's threatening retaliatory tariffs, changing the nature of the proposed UK-US trade deal.

 

Of course, the President is likely to be unaware that in the absence of the digital services tax, US firms might think that they can 'make an easy buck' in the UK.

 

In short, he wants the playing field in every market to favour the United States, which in his mind will benefit the US but is likely to reduce the level of trade, and actually have adverse effects for everyone. 

more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
April 21, 11:49 AM
Scoop.it!

Trump wants $1.5tn for the Pentagon – and cuts to healthcare and housing | Steven Greenhouse | The Guardian

Trump wants $1.5tn for the Pentagon – and cuts to healthcare and housing | Steven Greenhouse | The Guardian | International Economics: IB Economics | Scoop.it
From www.theguardian.com - April 21, 10:00 AM
The president’s proposed $445bn increase in military spending would batter popular domestic programs as millions struggle
Read more
Graham Watson's insight:

Just a classic case of the opportunity cost of higher defence spending, with President Trump wanting to increase the Pentagon budget to $1.5 trillion - a $445bn increase - at the expense of domestic spending at a time when a cost of living crisis is just starting to bite. 

 

It seems that leading the Board of Peace is a surefire recipe to increase the number of wars you intend to prosecute.  

more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
April 20, 10:47 AM
Scoop.it!

Falling fertility, debt and AI: is the US headed toward a population crisis? | US economy | The Guardian

Falling fertility, debt and AI: is the US headed toward a population crisis? | US economy | The Guardian | International Economics: IB Economics | Scoop.it
From www.theguardian.com - April 19, 7:00 AM
Americans having fewer kids plus an ageing population could be a recipe for disaster that further erodes social stability
Read more
Graham Watson's insight:

This article looks at the implications of falling fertility rates for the US economy, implying an ageing population. It's not uncommon across the developed world, but this time Eduardo Porter suggests that there's a chance that higher costs to look after the elderly might be offset by AI increasing productivity to the extent that this offsets the adverse implications of this situation for the public finances.  

more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
April 18, 4:39 AM
Scoop.it!

‘It’s a twilight zone’: Iran war casts deep shadows over IMF gathering in Washington | Politics | The Guardian

‘It’s a twilight zone’: Iran war casts deep shadows over IMF gathering in Washington | Politics | The Guardian | International Economics: IB Economics | Scoop.it
From www.theguardian.com - April 18, 12:00 AM
Rachel Reeves joins global finance chiefs in highlighting how households and businesses are feeling the pain of higher energy prices
Read more
Graham Watson's insight:

Not much in the way of theory more a taking of the global temperature, with the ongoing Iran conflict hanging over the global economy as the world's Finance Ministers met at the annual IMF gathering in Washington last week. It's clear that uncertainty is here to stay and that the distributional effects of the conflict have yet to unwind and, frankly, aren't fully appreciated. 

more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
April 17, 4:50 AM
Scoop.it!

Trump officials urge other countries to join ‘trade over aid’ push | USAID | The Guardian

Trump officials urge other countries to join ‘trade over aid’ push | USAID | The Guardian | International Economics: IB Economics | Scoop.it
From www.theguardian.com - April 16, 1:41 PM
US calls free-market capitalism ‘surest path to prosperity’ and seeks to forgo direct aid to developing countries
Read more
Graham Watson's insight:

A fairly straightforward article that compares the effectiveness of trade versus aid, a standard developmental topic. 

 

As the a spokesman at the State Department has stated:  “'The idea that trade and free market capitalism is the surest path to prosperity has been proven by the facts and by history,' Pigott said, adding that those calling for 'aid not trade' were 'really arguing for lining the pockets of a corrupt NGO industrial complex'."

more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
April 17, 4:45 AM
Scoop.it!

Claude Mythos: Finance ministers and top bankers raise serious concerns about AI model

Claude Mythos: Finance ministers and top bankers raise serious concerns about AI model | International Economics: IB Economics | Scoop.it
From www.bbc.co.uk - April 16, 9:34 PM
Experts say Mythos potentially has an unprecedented ability to identify and exploit cyber-security weaknesses.
Read more
Graham Watson's insight:

We rarely talk about this but this article looks at the rise of AI and the implications for financial stability but clearly central bankers are concerned about the potential for AI to disrupt global finance. 

 

This would represent the market failure to end all market failures. 

more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
April 16, 2:23 AM
Scoop.it!

Japan pledges $10bn to help Asian countries deal with oil crisis

Japan pledges $10bn to help Asian countries deal with oil crisis | International Economics: IB Economics | Scoop.it
From www.bbc.co.uk - April 16, 12:27 AM
The aid is roughly equivalent to a year's worth of crude oil imports by Asean countries.
Read more
Graham Watson's insight:

Japan has acted unilaterally to offer support to its Asian neighbours pledging $10bn to help them deal with the ongoing oil crisis. The region is the most badly affected by the Iran conflict because it is dependent upon the Gulf for the vast majority of its oil imports and the sum pledged is equivalent to a year's worth of oil imports into the region. 

more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
April 14, 6:48 AM
Scoop.it!

HSBC says Iran war is hitting confidence as businesses warn over economic risks | HSBC | The Guardian

HSBC says Iran war is hitting confidence as businesses warn over economic risks | HSBC | The Guardian | International Economics: IB Economics | Scoop.it
From www.theguardian.com - April 14, 4:31 AM
Oil-driven inflation is big challenge to world economy, lifting inflation and depressing growth, says bank’s chair
Read more
Graham Watson's insight:

One for the "That's Why They Earn the Big Bucks" file - the CEO of HSBC, Georges Elhedery, has pointed out that the Iran conflict has hit consumer and business confidence and this will have adverse consequences for growth. 

more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
April 13, 5:06 AM
Scoop.it!

Iran war could plunge 32 million into poverty, says United Nations | Poverty | The Guardian

Iran war could plunge 32 million into poverty, says United Nations | Poverty | The Guardian | International Economics: IB Economics | Scoop.it
From www.theguardian.com - April 13, 12:00 AM
‘Development in reverse’ taking place involving rising energy and food costs and weaker economic growth
Read more
Graham Watson's insight:

Another consequence of the Iran war - rising poverty levels across the rest of the world with rising energy and food prices plunging some of the world's most vulnerable into poverty, according to the UN. 

more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
April 11, 5:16 AM
Scoop.it!

Fuel-price protests cause chaos in Ireland and spread to Norway | Ireland | The Guardian

Fuel-price protests cause chaos in Ireland and spread to Norway | Ireland | The Guardian | International Economics: IB Economics | Scoop.it
From www.theguardian.com - April 10, 5:26 PM
Irish drivers told to buy only fuel they need as filling stations run out and hauliers and farmers block motorways in fourth day of action
Read more
Graham Watson's insight:

A global response to the Iran war appears to be spreading with Irish motorists, notably road hauliers and farmers,  responding to a shortage of fuel by blockading the economy's motorways. 

 

However, there not the only ones, with Norwegian hauliers following suit - something that's interesting given the extent to which Norway's motorists have switched to electric vehicles. 

more...
No comment yet.
Sign up to comment
About Follow us Resources Terms Mobile Features
Facebook
X
LinkedIn