Focus on International Economics

Focus on International Economics

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In a March 9 commentary, University of California, Berkeley, economist Barry Eichengreen predicted an imminent slowdown in China’s economy and discussed the impact on the world economy when that happens.

In a March 4 speech, Federal Reserve Board vice chair Janet Yellen put much of the blame for the economic crisis on international financial imbalances.

Also on March 4, Deutsche Bundesbank president Axel Weber gave a speech urging nations with large current account surpluses or deficits to tackle them before market forces do the job for them in ways that will be unpleasant.

In a March 1 commentary, Harvard economist Ken Rogoff discussed the problem of destabilizing international capital flows. He suggests that some sort of sovereign debt bankruptcy procedure would be helpful.

Also on March 1, the Peterson Institute published an extensive study on the use of capital controls and why some work and some don’t.

And on March 1, the International Monetary Fund published a staff discussion note by IMF chief economist Oliver Blanchard on how and why current account surpluses and deficits need to be reduced.

On February 28, the Treasury Department reported that foreigners owned $10.7 trillion of U.S. stocks, bonds and other securities as of June 2010. Among counties of ownership, China was the largest with $1.6 trillion, followed by Japan with $1.4 trillion, and the U.K. with $800 billion.

In a February 25 commentary, economists Carmen and Vincent Reinhardt examine the problem of destabilizing international capital flows.

On February 17, the Asian Development Bank published a working paper on the use of macroeconomic policy in Asian nations to rebalance growth away from an over- dependence on exports.

A February 1 working paper from the Organization for Economic Cooperation and Development examined the effect of currency appreciations in surplus countries on trade balances. It finds that while they can redress imbalances, they reduce growth at the same time. Shorter version here.

I last posted items on this topic on February 25.

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. 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, Imposter: 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.