In The News

A global economic recession increases the temptation for national governments, as happened in the past, to pursue protectionism, despite its proven record of harming the economy. What makes similar attempts now by governments more insidious is that they are more subtle and thus murkier to detect. As Richard Baldwin and Simon Evenett, editors of a new study note, measures are being taken “that...

The world’s largest economy that once thrived on consumption took a sudden turn to thriftiness. But a global slowdown in spending has hurt factory towns in China that once packed US closets at low prices. Thousands of workers have lost jobs and two out of every three textile and apparel factories in China could go out of business, reports David Barboza for the New York Times. “Experts say that...

The US and China’s economies have been intertwined for a long time but the solutions they each have adopted to fight global recession are polar opposites. The author argues that in order to effectively grow the economy, they need to do opposite things. They both need rebalancing and should swap their own stimulus packages. The US needs to spend less and save more, while China should spend more...