Category: Economics

In Terms of Real Estate, What is the US Actually Worth?


Generally, when thinking about the value of a nation’s resources, economists look to more practical and empirical figures. How strong is the dollar versus another currency? What is the relative gross domestic product (GDP) of one nation versus another? While this is certainly more practical for most purposes, one researcher asked an entirely different question: at market value, what would all of the real estate in the United States actually be worth?

Volatile Durable Goods in the U.S. and Eurozone Finance Ministers Meet Over Greece


The US dollar is softer against all the major currencies today, led by the euro and sterling. The main exception is the New Zealand dollar.  Dovish comments by the deputy governor of the RBNZ fanning speculation of an easing bias at next week’s policy meeting caught a speculative market that had turned net long (at least in the futures market).

Are You Living, or Stuck, in a Middle-Income Economy?


The notion of a middle-income trap has generated much interest and discussion, but little consensus. There is no agreement on what the trap is or how long a country needs to be at the middle-income stage to be considered trapped. Much of the current discussion is about growth slowdowns, but is a slowdown the same as a trap? It is also possible that the trap does exist but we do not know what causes it.

Is Greece’s Euroscepticsm Really Working, and Can it Work for Others?


The last few years have been remarkable for Greece’s relationship with the EU. The bail-out agreements between the country and the EU-IMF, the interference of the latter two in domestic affairs and the imposition of austerity have caused a sharp rise in euroscepticism.

The US and EU Discuss “Regulatory Coherence” at TTIP Talks


This week, in the shadow of the Pacific trade talks and the introduction of fast-track trade promotion authority, negotiators from the European Union and the United States are convening in New York City for what may be some animated chicken dinners.

A main topic of the 9th round of talks on the Transatlantic Trade and Investment Partnership (TTIP) will be “regulatory coherence.”

Keeping Macroeconomic Issues out of Trade Agreement Negotiations


It is impossible to deny that trade and exchange rates are closely linked. But does that mean that international trade agreements should include provisions governing national policies that affect currency values?

The Intractable North Korean Nuclear Issue


With the Six Party Talks — the main multilateral mechanism to negotiate North Korea’s denuclearisation — moribund since December 2008, the North Korean nuclear issue appears increasingly intractable. North Korea has proceeded with its nuclear program and enshrined its nuclear status in its constitution. And the United States and South Korea continue to see little utility in returning to formal negotiations unless North Korea first shows a credible commitment to dismantling its nuclear program.

Disappointing Data from Asia and Europe Highlight the Middle of the Week


A string of soft data in Asia and Europe has helped underpin the dollar, but choppy range trading persists.  Asian shares still rallied, helped by the biggest rally in Taiwan in almost two-years on the back of reports that China is studying a link between Taipei and Shanghai. European shares are trading heavy.   US shares are trading off in Europe as well. 

How did Pakistan Get Here on Yemen?


Saudi Arabia’s demand that Pakistan joins its coalition against the Houthi uprising in Yemen has put Islamabad in a catch-22 between joining the Saudi alliance and not antagonising its neighbour Iran. Joining the Saudi coalition would have long-term political, economic and security repercussions for Pakistan.

Following a high-level Pakistani delegation to the kingdom, Pakistan’s parliament met on 6 April 2015 to debate the merits of joining the Saudi-led coalition against the uprising. The Saudis have asked Pakistan for aircrafts, naval vessels and ground troops.

The Swiss National Bank Changes an Exemption Out of Fairness


The Swiss National Bank announced today that as of May 1 the negative rate charged for sight deposits would be applicable to most institutions that were previously exempt. Many saw this as an easing move by the SNB and sold the Swiss franc in response.