In The News

Argentina Faces Economic Crisis: Buenos Aires Times

December 13, 2019
Alberto Fernández, sworn in as president of Argentina, inherits enormous debt, recession, inflation, a 10 percent unemployment rate and 40 percent poverty rate, reports the Buenos Aires Times. The peso has lost two thirds of its value since 2018. The many challenges compound the hardship in paying external debt. Fernández promises to increase economic growth but offers no details, partly because...

The End of Inflation? The Economist

The Economist October 15, 2019
Inflation was once a high priority for economists, and governments put full force into combatting the decline in the purchase value of their respective currencies. Most governments that target inflation have the phenomenon in control or even worry that the rate is too low, despite historically low interest rates and unemployment rates as well as recent stimulus funding. Traditional economic...

Argentina on Its Own: Buenos Aires Times

Marcel J. Garcia October 1, 2019
Argentina is experiencing political and economic turmoil, with high debt and inflation, and Argentinians remove savings from banks and avoid the peso. The International Monetary Fund indicates weariness with Argentina’s problems, suggests Marcel J. Garcia for Buenos Aires Times. Argentina represents nearly 60 percent of the IMF portfolio and global credit ratings agencies suggest the country is...

Project Syndicate: Silent Inflation

Robert J. Shiller December 2, 2018
Central banks manage inflation for stability, and Yale economics professor Robert Shiller describes the challenge of “silent inflation” – the practice of central banks setting inflation targets ranging from below or near 2 percent for Europe, the United States and Japan to 13 percent for Egypt. “Such policies cause a sort of magnification of the present in the minds of most people,” Shiller...

Project Syndicate: Makings of a 2020 Recession

Nouriel Roubini and Brunello Rosa October 1, 2018
A global recession is anticipated in 2020, and Nouriel Roubini and Brunello Rosa suggest it could be severe. Fiscal-stimulus policies are unsustainable and contribute to overheating and inflation, which in turn drives up interest rates. US trade disputes with China, Europe, Mexico and Canada disrupt supply chains and contributes to slowed growth. Adding complications: a US crackdown on...

Project Syndicate: Strong Dollar Weakness

Benjamin J. Cohen August 24, 2018
The US dollar gained more than 8 percent value for the year and shows no sign of slowing. US officials credit growing business confidence, but Benjamin Cohen, writing for Project Syndicate, credits rising interest rates for increased dollar demand. The rising dollar makes US exports more expensive, and new tariffs make imports more expensive, adding to inflation and prompting the US Federal...

South China Morning Post: China Won’t Interfere in Venezuela

He Huifeng May 22, 2018
Three years ago, the United States was Venezuela’s top trade partner, accounting for 43 percent of exports and 29 percent of imports. Rising animosity in US-Venezuelan relations increased Venezuela’s reliance on China including oil-for-loan deals. The country’s economy has collapsed and China may be giving up on Venezuela, too: Basic goods and food are unavailable, crime is widespread, and the...