Economics, Finance, TradeEconomics, Finance, GovernanceEconomics, Education, FinanceEconomics, Finance, GovernanceEconomics, Education, Governance, Poverty ReductionEconomics, Finance, GovernanceEconomics, Finance, GovernanceFinanceEconomicsTrade
By Yizhe Daniel Xie. Posted April 19, 2017
The rise of Donald Trump has reignited the debate on the link between exchange rates and trade. The Trump administration has blamed the exchange rate policies of the People’s Republic of China (PRC), Japan, and Germany for the current account deficit in the United States (US), and the president’s Twitter posts have put many major currencies on a roller coaster ride. Now, policy makers around the globe are concerned about the negative impact of exchange rate volatility on world trade. Read more.
By Eva Paus. Posted April 13, 2017
The “middle income trap” captures the situation where a middle income country can no longer compete internationally in standardized, labor-intensive commodities because wages are relatively too high, and it can also not compete in higher value added activities on a broad enough scale because productivity is relatively too low. The result is slow growth, stagnant or falling wages, and a growing informal economy. Read more.
The Fukushima Daiichi nuclear disaster was an energy accident at the Fukushima No. 1 Nuclear Power Plant in Fukushima, Japan, initiated primarily by the tsunami that followed the Tohoku earthquake on 11 March 2011 and led to a nuclear shutdown in the country. Japan substituted the loss of nuclear power with fossil fuels, such as oil, gas, and coal, and became more dependent on their imports and consumption. Read more.
The Bank of Japan (BOJ) announced in September last year that it would be switching the focus of its quantitative easing program from monetary base targeting to controlling the shape of the yield curve (Bank of Japan, 2016). A brief comparison of the two frameworks is as follows. The previous monetary easing framework, Quantitative and Qualitative Monetary Easing (QQE) with a Negative Interest Rate, set out three policy dimensions: quantity, quality, and interest rates. Read more.
Japan and the United States (US) are at similar levels of economic development, yet their income distributions are considerably different. Whereas Japan has a relatively equal income distribution, the US is marked by a high level of income inequality. What are the sources of income inequality in both countries? Our latest research aims to uncover the sources on income inequality in both countries by exploiting detailed household panel survey. Read more.
By Gunther Schnabl. Posted March 15, 2017
In the 1960s, Kaname Akamatsu (1961) described the gradual relocation of industries from the advanced industrialized countries in East Asia to the less advanced countries during the latter’s economic catch-up process as the “flying geese” pattern. For instance, the textile industry was clustered in Japan in the 1950s but then successively relocated to the newly industrialized economies (Hong Kong, China; Taipei,China; Singapore; and the Republic of Korea), the new generation of tiger countries (Indonesia, Malaysia, the Philippines, and Thailand), the People’s Republic of China (PRC), and now increasingly to Viet Nam. Read more.
By James McAndrews. Posted March 10, 2017
Cash is an extremely useful social contrivance. Two possible drawbacks of high-denomination cash have recently been discussed by Kenneth Rogoff (2016) in his book, The Curse of Cash, and echoed by other economists. They are the extensive use of high-denomination cash by criminals and others engaged in illicit and corrupt activities, and the role that cash plays in avoiding deeply negative nominal interest rates imposed on bank accounts. Rogoff and others call for a phasing-out of high denomination cash over a long period. Read more.
By Paul D. McNelis. Posted March 3, 2017
The Federal Open Market Committee, the official policy making body of the Board of Governors of the Federal Reserve System (Fed), announced the long-awaited increase, or liftoff, in the federal funds rate of 0.25% just over a year ago in December 2015. This action represented the beginning of a “return to normalcy” from the period since 2008 when the Federal Reserve had been operating at the zero lower bound. With the liftoff already 1 year behind us, market watchers widely expect continued, even abrupt, increases in United States (US) interest rates in the coming year. Read more.
By Paul Vandenberg. Posted February 22, 2017
As we know from countless growth accounting studies, the ability of a country to educate and train its citizens is a key determinant of economic development. There is also fairly strong evidence at the company level that a workforce with higher human capital generates higher productivity. In other words, not only are there strong incentives for governments to educate and train people, but there are also incentives at the firm level for companies to hire more educated workers and to offer training to their existing workers. Read more.
Trade in health products has increased substantially over the past 2decades, and tariffs on health products have been lowered, making, for example, medicines more affordable for many.Indeed, Sustainable Development Goal (SDG) 3 calls upon countries to ensure healthy lives and to promote well-being for all ages. Yet in several developing countries, substantial tariffs still persist, inflating the prices of health products. The most direct and immediate contribution of the trade community toward achieving SDG 3 couldbe to open up trade unilaterally or to negotiate a plurilateral trade agreement, which would guarantee free market access for health products, like much-needed medicines. Read more.
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- How does exchange rate volatility affect value added and gross trade?
- Escaping the middle income trap: Innovate or perish
- Hometown investment trust funds: A sustainable solution for financing green energy projects
- Assessing the BOJ’s yield curve control policy
- Why is Income Distributed Unequally? A Comparison of Japan and the United States
- Hometown investment trust funds: A sustainable solution for financing green energy projects on
- Why is Income Distributed Unequally? A Comparison of Japan and the United States on
- Why poor countries should invest first in national trade infrastructure on
- Market failure or low-skills equilibrium? on
- Implications of negative interest rates for Asia on