global economy

A new exchange rate era

Lun, 05/13/2024 - 02:10 -- bacosta

The reduction in the use of the dollar in international transactions and in keeping the reserves of nations, known as de-dollarisation, is not a conspiracy but rather the consequence of a series of interconnected factors reflecting changes in the global economic landscape. The declining relevance of the United States in the global economy, the growth of trade among emerging economies and the search for lower costs in international transactions are the main drivers of this phenomenon.


Lun, 06/06/2022 - 20:40 -- bacosta

Economic sanctions deliver bigger global shocks than ever before and are easier to evade 

Not since the 1930s has an economy the size of Russia’s been placed under such a wide array of commercial restrictions as those imposed in response to its invasion of Ukraine. But in contrast to Italy and Japan in the 1930s, Russia today is a major exporter of oil, grain, and other key commodities, and the global economy is far more integrated. As a result, today’s sanctions have global economic effects far greater than anything seen before. Their magnitude should prompt reconsideration of sanctions as a powerful policy instrument with major global economic implications.

Sanctions are not the only source of turmoil in the global economy. Energy prices have been rising since last year as the economic recovery from the pandemic encountered overburdened supply chains. Global food prices rose 28 percent in 2020 and 23 percent in 2021, and they surged 17 percent this year between February and March alone. The war has also harmed Ukraine directly as fighting has closed the country’s Black Sea ports, blocking its exports of wheat, corn, sunflower oil, and other goods. 

Gloom Ahead of World Economic Storm

Mar, 01/15/2019 - 10:55 -- aocampo

In light of the uncertainty caused by the US-China trade war, the IMF expects the US economic growth to slow from a three-year high of 2.9 per cent in 2018 to 2.5 per cent in 2019, while China's expansion has already slowed in recent years, albeit from much higher levels.

The "new sovereigntists" and false prophets of American exceptionalism are undermining multilateral cooperation when needed most. Thus, a recession in 2019 may well elevate geo-political tensions, exacerbating the negative feedback loop for a ‘perfect storm'.

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