Zimbabwe’s Informal Sector has become its Economy
The upheaval sweeping through Zimbabwe comes with a new economic and political reality – the informalisation of the country’s economy. In Zimbabwe today, the informal sector is the economy.
Category: Economics
Is China’s South China Sea Stance Moving Closer to UNCLOS?
Beneath its surface-level bluster, China’s authoritative response to the United Nations Convention on the Law of the Sea (UNCLOS) arbitration this week contained welcome hints that China may be subtly, and under cover of a strong stance on its South China Sea territorial sovereignty, bringing its South China Sea maritime rights claims into line with UNCLOS.
Federal Reserve Decisions Effect on Emerging Markets
If the United States Federal Reserve tightens or eases monetary conditions, this impacts emerging economies. Over the years since the global financial crisis, a second type of spillover has emerged: spillovers stemming from the uncertainty about future monetary policy. Uncertainty spillovers exist above and beyond those stemming from specific policy steps.
Post-BOE Meeting
The Bank of England surprised many, if not most, participants by not changing policy. There was no rate cut and no asset purchase plan.
However, there can be little doubt that the BOE will take action next month. The minutes indicate that officials are considering a package of measures that will be aimed at supporting growth. This could include new asset purchases.
Pre-BOE Meeting
After a nearly three weeks of turmoil following the UK referendum, there is now a sense of order returning to UK politics. Two elements of the new government are particularly relevant. First, May demonstrates strategic prowess by putting those like Johnson and Davis, who campaigned for Brexit, to lead the negotiations with the EU, while putting Tories who favored remaining in the EU in the internal ministries.
The Interconnected Social and Economic Cost of Gun Control
Another week in America, another week of sadness and hand wringing prompted by gun violence.
Countering 70 Years of U.S.-Japan Relationship Building, Trump Presses On
Donald Trump has defied all expectations about the US presidential election by emerging as the presumptive nominee of the Republican Party. For Japan, his extreme rhetoric brings to the fore a fundamental question as to the future of the US alliance system and its global leadership: will US alliance relationships be weakened as part of the retreat to isolationism espoused by Trump? Or will those alliances be reconfigured to reflect the shifting geopolitical landscape?
May Moves Into No. 10 but Uncertainty Remains
The two main developments in the foreign exchange market this week in recent days has been the opposite of what has transpired over the past several weeks. Sterling moved higher quickly. The yen moved down just as fast. Over the past five sessions through late-morning levels, sterling has gained 2.5% while the yen has shed 2.8%.
The Popularity of Protectionism
Surveying democratic election results around the world, it’s clear the high water mark for globalisation has been met. Free trade, always-questionable economics, is no longer good politics and in many ways has jumped the shark.
Shooting for Summit Success in Beijing
The annual China-EU Summit is a great opportunity for Beijing and Brussels to align complementary investment agendas. Failure is no longer an option.
The annual EU-China Summit will take place in Beijing in mid-week. The high stakes are reflected by high-level participation, which includes the European Council President Donald Tusk, European Commission President Jean-Claude Juncker and Federica Mogherini, the EU high representative for foreign affairs and security policy.
