Focus on International Economics

Focus on International Economics

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An August 6 study from the Federal Reserve Bank of St. Louis pointed to a very substantial increase in foreign direct investment from developing countries over the last 10 years.

On August 5, the Peterson Institute released a study by economist William Cline on the exchange rate of China’s currency. He estimates that a 10 percent rise in the real value of the Chinese currency would reduce the bilateral trade deficit with the U.S. by as much as $63 billion.

In an August 2 commentary, Cornell University economist Eswar Prasad is critical of efforts to bring back currency controls.

On July 29, the International Monetary Fund released a staff report on China’s economy. It urges China to encourage greater domestic consumption, expand its social safety net and other policies to rebalance its economy.

Also on July 29, the IMF released a paper looking at the impact of public capital on growth in 48 countries. It finds that the benefits are unambiguously positive and increase over time.

On July 28, University of Wisconsin economist Menzie Chinn posted an extensive list of links to recent papers on China’s economic policies.

A July 22 report from the Congressional Research Service examined foreign investments in U.S. securities and whether it presents a national security threat.

A July report from the International Monetary Fund examined the decline in bank lending in the euro area. It concludes that this is due both to a falloff in demand for loans by businesses and capital constraints by banks.

A July paper by economists Barry Eichengreen and Peter Temin finds that a lack of exchange rate flexibility in many countries contributed to the economic crisis just as the gold standard did in the 1930s.

I previously posted items on this topic on July 22, June 30, and June 24.

Bruce Bartlett is an American historian and columnist who focuses on the intersection between politics and economics. He blogs daily and writes a weekly column at The Fiscal Times. Read his most recent column here. Bartlett has written for Forbes Magazine and Creators Syndicate, and his work is informed by many years in government, including as a senior policy analyst in the Reagan White House. He is the author of seven books including the New York Times best-seller, Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy (Doubleday, 2006).


 

Bruce Bartlett’s columns focus on the intersection of politics and economics. The author of seven books, he worked in government for many years and was senior policy analyst in the Reagan White House.