15 November 2019

Real Insight

  • Despite accounting for only about 18 percent of the global population, the advanced economies consume about 70 percent of the world’s energy, the vast majority of which (87 percent) comes from fossil fuels. Photo: Bloomberg

    Green markets for equitable growth

    - Nov 15, 2019 10:39am
    The climate crisis and the 2008 financial crisis are two sides of the same coin. Both were born of the same toxic feature of the world’s prevailing economic model: the practice of discounting the future. Protecting...
  • As the UK general election approaches, both Labour and the Conservatives are pursuing programs to boost minimum wages further. Photo:AFP

    A living wage for capitalism

    - Nov 15, 2019 10:17am
    At 3.6 percent, unemployment in the United States remains near its lowest level since the late 1960s. There are even signs that people who had previously dropped out of the labor force are being attracted back...
  • Facebook's Libra plan has inspired many advanced-economy central banks to accelerate their programs to provide broader-based retail digital currencies. Photo: Reuters

    The high stakes of the coming digital currency war

    - Nov 12, 2019 11:40am
    Facebook CEO Mark Zuckerberg was at least half right when he recently told the United States Congress that there is no US monopoly on regulation of next-generation payments technology. You may not like Facebook’s proposed Libra...
  • Libra could become a widely used form of payment – partly because Facebook has over two billion monthly active users, but also because the existing financial system is full of inefficiencies, says the author. Photo: Reuters

    Is the global dollar in jeopardy?

    - Nov 11, 2019 11:24am
    Since the end of World War II, the United States dollar has been at the heart of international finance and trade. Over the decades, and despite the many ups and downs of the global economy, the...
  • Innovations like smartphones and new internet platforms have fundamentally changed the way that people connect and conduct business. Photo: Bloomberg

    The New Anti-Capitalism

    - Nov 7, 2019 2:07pm
    We are currently living through the most dramatic technological and economic transformation in the history of mankind. We are also witnessing declining support for capitalism around the world. Are these two trends connected, and if so,...
  • Governors of central banks gather for a group picture at the International Monetary Fund and World Bank's 2019 Annual Meetings of finance ministers and bank governors, in Washington on Oct. 19. Photo: Reuters

    The allure and limits of monetized fiscal deficits

    - Oct 29, 2019 11:11am
    A cloud of gloom hovered over the International Monetary Fund’s annual meeting this month. With the global economy experiencing a synchronized slowdown, any number of tail risks could bring on an outright recession. Among other things,...
  • China will continue placing the highest priority on maintaining social and political stability – a prerequisite for long-term economic development. Photo: Bloomberg

    China adjusts to the New World Order

    - Oct 29, 2019 10:23am
    On October 1, the People’s Republic of China celebrated the 70th anniversary of its founding with impressive military and civilian parades meant to showcase the extraordinary progress the country has made under the leadership of the...
  • California's Assembly Bill 5 covers the more than 400,000 workers who drive for platform companies such as ride-sharing services Uber and Lyft. Photo: Bloomberg

    A new approach to protecting gig workers

    - Oct 25, 2019 10:05am
    In the United States and other advanced industrial economies, a growing number of workers no longer work for a single employer on a traditional contract. Instead, they earn income through a variety of “non-standard” working arrangements,...
  • The US government has exploited the currency’s global dominance in order to extend the extraterritorial reach of US law and policy. Photo: Bloomberg

    How a weaponized dollar could backfire

    - Oct 24, 2019 10:33am
    The language of international monetary policy has turned militaristic. The phrase “currency war” has now been popular for a decade, and the United States government’s more recent “weaponization” of the dollar is generating controversy. But ironically,...
  • The current proposals for reforming global taxation don’t go far enough, the author says. Photo: Bloomberg

    No more half-measures on corporate taxes

    - Oct 8, 2019 10:52am
    Globalization has gotten a bad rap in recent years, and often for good reason. But some critics, not least US President Donald Trump, place the blame in the wrong place, conjuring up a false image in...
  • It’s high time to ask how to refocus the IMF's mandate for dealing with emerging-market debt crises, says the author. Photo: Xinhua

    The IMF after Argentina

    - Oct 3, 2019 10:45am
    In case you blinked, the Argentine government built up a pile of debt out of almost nothing with surprising speed, and then proceeded to default on it almost as quickly. Compared to the country’s slow-motion 2002...
  • US Senator Elizabeth Warren, who is running for the Democratic presidential nomination on a pro-reform platform, argues that designing market structures differently will lead to different (and better) outcomes. Photo: AFP

    How to rethink capitalism

    - Oct 2, 2019 12:12pm
    The United States Business Roundtable, an organization of CEOs of large US companies, recently issued a statement that caused quite a stir in some circles. Rather than focusing primarily or exclusively on maximizing shareholder value, America’s...
  • People wave Chinese flags as doves are released at the end of a parade marking the 70th founding anniversary of People's Republic of China, in Beijing on Tuesday. Photo: Reuters

    The next phase of China’s reform and opening up

    - Oct 2, 2019 11:32am
    Over the last four decades, China has integrated into global networks in trade, finance, data, and culture (encompassing social values, religion, and political beliefs). But, as the United States embraces protectionism, continued progress on global integration...
  • A blowup over Brexit might not by itself cause a global recession, but it would certainly trigger a European one, which would then spill over to other economies, Nouriel Roubini warns. Photo: Reuters

    Four collision courses for the global economy

    - Sep 25, 2019 10:17am
    In the classic game of “chicken,” two drivers race directly toward each other, and the first to swerve is the “loser.” If neither swerves, both will probably die. In the past, such scenarios have been studied...
  • Protesters with placards participate in The Global Strike 4 Climate rally in Sydney, Australia, on Friday. Photo: AAP via Reuters

    Climate Code Red

    - Sep 20, 2019 10:43am
    When emergencies strike, special processes within governments and communities swing into gear. And everyone steps up to help. The world is now in a climate emergency. At the United Nations Climate Action Summit in New York...
  • A shift in Germany’s fiscal-policy approach could open the door for a loosening of eurozone fiscal rules. Photo: Bloomberg

    The return of fiscal policy

    - Sep 19, 2019 9:40am
    As we enter the last quarter of 2019 (and of the decade), cyclical indicators point to a slowing world economy amid wide-ranging structural challenges. There are plenty of issues to keep one up at night, be...
  • Migrants from Central America and Cuba queue outside the Mexican Commission for Refugee Assistance in Tapachula, Mexico. Large-scale migration has implications for land rights in both urban and rural areas. Photo: Reuters

    Strengthening land rights will curb migration

    - Sep 18, 2019 9:38am
    The world’s food supply is under threat. That was the stark warning contained in a recent Intergovernmental Panel on Climate Change (IPCC) report on climate change and land. The signs are already ubiquitous. Hundreds of millions...
  • Although America is still the world’s leading economic, technological, and military power, it increasingly must share that status with China, the author says. Photo: Reuters

    Preventing Cold War II

    - Sep 12, 2019 10:28am
    When world leaders gather in New York later this month for the annual United Nations General Assembly meetings, they will have much to discuss besides climate change and sustainable development. In particular, the escalating superpower rivalry...
  • The eurozone economy is in a much better shape than it was in March 2015, when the European Central Bank introduced quantitative easing. Besides, interest rates can hardly be cut much further. Photo: Bloomberg

    It’s time for ECB to put quantitative easing on hold

    - Sep 10, 2019 9:53am
    With economic sentiment in the eurozone worsening rapidly, the European Central Bank is widely expected to announce a robust package of additional stimulus measures at its next meeting on Sept. 12. But although the ECB’s monetary...
  • US President Donald Trump’s trade war and Twitter threats are fueling economic uncertainty. Photo: Reuters

    Money for nothing

    - Sep 5, 2019 9:50am
    A monetary policy regime centered on quantitative easing (QE) and zero or even negative interest rates has created an extraordinarily permissive environment for politicians of a certain disposition. Those who are willing to exploit current conditions...