In The News

Project Syndicate: Will Economic Illiteracy Trigger a Trade War?

Jeffrey D. Sachs April 28, 2017
An introduction to economics defines a nation’s deficit or surplus – “The current-account balance, measuring the balance of trade in goods, services, net factor income, and transfer payments from abroad, is equal to national saving minus domestic investment.” The Trump administration is mistaken about the source of the US deficit, overlooking the low US rate of saving and instead blaming Germany...

Barron’s: Don’t Give Up on Globalization

Joseph Quinlan April 20, 2017
Much of the world no longer trusts “the unfettered cross-border flows of goods, services, people” of globalization anymore,” explains Joseph Quinlan for Barron’s. “Without access to the world’s resources, capital, and labor, many U.S. firms would be shadows of their current selves in terms of market capitalization and earnings. That would endanger the whole U.S. economy.” Quinlan also expresses...

Deutsche Welle: Turkey's Referendum Result Could Scare Off Investors

Rolf Wenkel April 18, 2017
Turkish voters narrowly approved a referendum, by 51 percent, to replace its parliamentary system with a strong presidency. That could cement power for the current president over the next decade, though opposition leaders object to last-minute changes in voting procedures. Investors will watch closely how political leaders handle the transition as well as minorities, including Kurds who make up...

The Atlantic: All the President's Flip-Flops

David A. Graham April 13, 2017
The US president, in office for less than 100 days, has reversed course on multiple campaign promises, as listed by David Graham for the Atlantic. The “most visible reversal” is on Syria – with Donald Trump rejecting foreign intervention in Syria, even after a 2013 chemical attack, before the election and as president ordering missile attacks. Trump’s praise for Russian President Vladimir Putin...

Financial Times: Brexiters Must Lose if Brexit Is to Succeed

Martin Wolf March 30, 2017
The British government officially notified the EU of its intention to leave – an admission that a prominent and pragmatic member could not influence the larger governing structure or find agreement with other European members. The decision is a tragedy for both sides “Even if the exit negotiations go well,” explains Martin Wolf for the Financial Times. “Economically, [the UK] will lose favourable...

Nikkei Asian Review: Brexit Moment of Truth

Humphrey Hawksley March 22, 2017
Britain will give formal notice March 29 on exiting the European Union. “Britain has suddenly become a place of uncertainty for investors – from Asia and the rest of the world,” explains Humphrey Hawksley for Nikkei Asian Review. “Already, thousands of Asian companies that are integral to the British economy are slowing or reversing expansion plans.” Hawksley points that the UK’s share of the...

The Spectator: Theresa May Fights a War on Two Fronts - Any Mistakes Could Be Fatal

James Forsyth March 16, 2017
British voters approved leaving the European Union, by a margin of 52 to 48 percent. More than 55 percent of voters in Northern Ireland and 62 percent in Scotland voted to remain. British Prime Minister Theresa May will trigger Article 50 and the two-year process for EU exit soon. Actual costs and institutions to handle trade, travel, immigration and regulatory details are yet unknown. May must...