In The News

Global Recession on Way: South China Morning Post

Anthony Rowley June 14, 2019
With trade tensions, increased protectionism and major economies in no mood to cooperate, global recession is inevitable and possibly even reach crisis levels. Monetary easing or fiscal stimulus may not be effective if countries are intent on isolation. Global trade growth is at its slowest and Anthony Rowley compares current economic troubles with previous recessions: “The renewed slowdown in...

Debt Hampers Response to Changing Economy: IMFBlog

Vitor Gaspar, John Ralyea, and Elif Ture April 15, 2019
The International Monetary Fund warns that public debt combined with slowed economic growth could constrain future government spending on education, employment, healthcare, infrastructure and retirement. The IMF advises policymakers to encourage more inclusive growth by reducing debt and investing in the futures of their citizens by reducing tax exemptions and improving tax administration. “The...

China’s Social Credit System: Channel NewsAsia

Tom McGregor March 6, 2019
As populations grow, governments want to control social behavior, encouraging citizens to follow rules. China has instituted a social credit system that gives citizens points and benefits for good behavior. “‘Discredited’ Chinese citizens face greater scrutiny from the public, meet tougher challenges when applying for new credit cards, getting bank loans and in more severe cases, may be blocked...

Japan Bank Fuels Global Lending: Wall Street Journal

Telis Demos and Sam Goldfarb February 19, 2019
Corporate debt is unnerving some investors. For companies with low ratings, Norinchukin Bank in Japan with about $600 billion in deposits from agricultural and fishing collectives can come to the rescue. The company with about $1 trillion in assets, holds about $700 billion in collateralized loan obligations, which in turn cover about half of US loans to junk-rated companies, report Telis Demos...

US Debt and Foreign Creditors: Wall Street Journal

Daniel Kruger and Kate Davidson February 12, 2019
Foreign investors are less keen to own US government bonds, but domestic investors pick up the slack for now. “Foreign ownership of U.S. government debt has been decreasing since it reached a peak of about 55% during the financial crisis in 2008, falling below 40% in November for the first time since 2003, according to the most recent Treasury data,” report Daniel Kruger and Kate Davidson for the...

China, Japan, Asian Century: China Economic Review

Tomoo Kikuchi and Masaya Sakuragawa February 8, 2019
Asia’s contributions continue to gain weight in the global economy. China and Japan are the world’s second and third largest economies, respectively. India, South Korea and ASEAN members also provide substantial contributions. All benefit from free trade, explain Tomoo Kikuchi and Masaya Sakuragawa, but trade and growth have slowed. “China and Japan should pursue greater cooperation on a number...

TNI: Unused Citizen Power and Public Collateral

Ann Pettifor January 26, 2019
Citizen majorities who support action on climate change or a tax system that reduces inequality must find political courage to battle moneyed interests. Citizens in nations with sound taxation systems hold more power than they realize. Taxpayers can demand that public debt target the public interest – as former US President Franklin D. Roosevelt accomplished during the Great Depression and some...