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World Economy

Don't Worry, China Will Keep Growing

Justin Yifu Lin | Posted 02.01.2016 | World
Justin Yifu Lin

BEIJING -- The coming crash of the Chinese economy has reemerged as a popular view in the global media. The reason for such a prediction this time is the persistent deceleration of China's growth after 2010. The growth rate dropped from 10.6 percent in 2010 to 7.3 percent in 2014 and further down to 6.9 percent in 2015, which is the lowest record in 25 years. It is the first time that China has experienced such an extended period of deceleration after the transition to a market economy in 1979.

2016's Market Opening and Future Situation

Thaddeus McCarthy | Posted 01.11.2016 | Business
Thaddeus McCarthy

Carnage; that is the only word that can be used to describe the opening to the global stock-markets at the beginning of 2016. The S & P 500 index l...

China Is Headed for a Debt Meltdown Like the U.S. in 2008 -- But Worse

Robert Hockett | Posted 01.08.2016 | World
Robert Hockett

What is now happening is that people are selling off Chinese assets and investing instead in (primarily) American assets -- including stocks but especially real estate. As momentum in these flows builds up, China faces the prospect of full-on meltdowns in its stock and real estate markets, just as occurred here in the U.S. in the late 1920s and post-2008 -- only worse.

Why the Great Malaise of the World Economy Continues in 2016

Joseph E. Stiglitz | Posted 01.04.2016 | World
Joseph E. Stiglitz

The only cure for the world's malaise is an increase in aggregate demand. Far-reaching redistribution of income would help, as would deep reform of our financial system -- not just to prevent it from imposing harm on the rest of us, but also to get banks and other financial institutions to do what they are supposed to do: match long-term savings to long-term investment needs.

China Must Change G-20 from a 'Fire Brigade' to an Engine of Inclusive Global Growth

He Yafei | Posted 12.22.2015 | World
He Yafei

BEIJING -- The last round of scientific, technological and industrial revolution has lost its momentum. China is expected to illustrate to the world that global economic growth needs to be based in innovation to identify new engines and driving forces such as new technology, "Internet plus," new products and new sources of energy.

Why the U.S. Could Soon Be the World's First Former Middle Class Society

Joseph E. Stiglitz | Posted 12.09.2015 | World
Joseph E. Stiglitz

America is becoming a more divided society -- divided not only between whites and African Americans, but also between the 1 percent and the rest, and between the highly educated and the less educated, regardless of race.

Why Eurasia Will Drive the Global Economy in the Future

George Yeo | Posted 11.10.2015 | World
George Yeo

SINGAPORE -- This summer, for the first time, financial turmoil in China created turbulence around the world and even hit New York. This was an historic event and is a portent of things to come. Yes, China fumbled. It could have avoided certain obvious mistakes which many saw coming, but the Chinese will learn from it. What the episode shows is how the relative weights are shifting in the world way beyond just trade.

Surprising Findings in China

Judah Freed | Posted 08.12.2015 | Business
Judah Freed

Steve Hoffman at Founders Space recently returned from a "marathon business trip" to China. He returned with some unexpected findings that defy many of our staid stereotypes in the West. With Steve's permission, I am quoting his findings below.

BRICS Leaders Launch Bank, Vow To Coordinate To Protect Economies

Reuters | Darya Korsunskaya, Denis Pinchuk and Katya Golubkova | Posted 07.09.2015 | World

By Darya Korsunskaya, Denis Pinchuk and Katya Golubkova UFA, Russia, July 9 (Reuters) - The BRICS emerging nations said on Thursday ...

China-Led Asian Infrastructure Bank Launches

AP | Posted 06.30.2015 | World

BEIJING (AP) — Envoys of governments that plan to join a Chinese-led Asian bank endorsed a structure Monday that gives Beijing the biggest voting st...

Today's Global Economy? We Are All in it Together!

Dominik Knoll | Posted 06.04.2015 | Business
Dominik Knoll

Today I would like to write about the World Economy, highlighting some of the current strengths and developments on the examples of the US, Europe, China and India.

China's New World Order: Sharing Global Prosperity Through Connectivity of the Silk Route Countries

Nake M. Kamrany | Posted 06.03.2015 | World
Nake M. Kamrany

In sharp contrast to the current hegemonic intrigue by the U.S./NATO in the Middle East/ Afghanistan and the Russian Federation militarism and conquest in Eastern Europe, China is offering to the world an alternative to wars. It is China's New World Order for global peace and prosperity.

How Trade Agreements Amount to a Secret Corporate Takeover

Joseph E. Stiglitz | Posted 05.26.2015 | World
Joseph E. Stiglitz

NEW YORK -- These agreements go well beyond trade, governing investment and intellectual property as well, imposing fundamental changes to countries' legal, judicial, and regulatory frameworks, without input or accountability through democratic institutions.

China's New Silk Road Initiative Will Boost the Global Economy

Philipp Mißfelder | Posted 06.20.2015 | World
Philipp Mißfelder

BERLIN -- The New Silk Road Initiative will not only result in an enormous surge in growth for China. With "One Belt, One Road," President Xi Jinping is launching one of the largest development projects in history and offers new perspectives to countries such as Uzbekistan and Tajikistan threatened by terrorism.

Why Europeans Are Trying to Burn Down Their Central Bank

Mark Dawson | Posted 06.13.2015 | World
Mark Dawson

BERLIN -- Great crises often produce enduring images. For the Israeli-Palestinian conflict, this has often been a terrified child cowering behind protective parents; for 9/11 it was brave firemen rushing headlong into collapsing buildings. Last month saw what could become one of the lasting images of Europe's unending crisis: the sight of burning cars and buildings after riots outside the European Central Bank.

Why the Social Progress Index Is the Best Metric of National Performance

Michael Porter | Posted 06.09.2015 | World
Michael Porter

CAMBRIDGE, Mass. -- I have seen how Rwanda made investing in social progress -- including gender equity, a 61 percent reduction in child mortality in a single decade, and 95 percent primary school enrollment -- integral to its economic development strategy. Rwanda's positive economic performance would not have been possible without improvement in these and other dimensions of social progress.

The 'Rising Billion' New Consumers Will Arrive by 2020

Peter Diamandis | Posted 06.06.2015 | World
Peter Diamandis

On a planet with a 7 billion plus population, more than 4 billion people still don't have access to the Internet. But by 2020, I expect the entire world will be connected.

The Coming Emerging Market Debt Squeeze

Andrés Velasco | Posted 06.02.2015 | World
Andrés Velasco

SANTIAGO -- The bulk of that debt is in Asia, with China alone accounting for approximately $1 trillion. Other big dollar borrowers include Brazil (over $300 billion) and India ($125 billion). Countries such as Malaysia, South Africa, and Turkey, plus Latin America's more financially open economies, also have rising foreign currency debts.

The Bright Future of Asia's Middle Class

Lee Jong-Wha | Posted 05.24.2015 | World
Lee Jong-Wha

SEOUL -- Equipped with high-quality education, Asia's rising middle class will demand higher-quality public services. Increased confidence in their country's political systems and institutional structures, enhanced by improved perceptions of upward mobility, will help to strengthen the rule of law. And there will be more opportunities for women to learn and work, leading to greater gender equality.

Why Stupid Politics Is the Cause of Our Economic Problems

Joseph E. Stiglitz | Posted 03.28.2015 | World
Joseph E. Stiglitz

The near-global stagnation witnessed in 2014 is man-made. It is the result of politics and policies in several major economies -- politics and policies that choked off demand. In the absence of demand, investment and jobs will fail to materialize. It is that simple.

Why 2015 Is a Make-or-Break Year for the Global Economy

Christine Lagarde | Posted 03.22.2015 | World
Christine Lagarde

The adoption of the IMF reforms by the United States Congress would send a long overdue signal to rapidly growing emerging economies that the world counts on their voices, and their resources, to find global solutions to global problems.

As Davos Convenes, World Economy Is Poised to Stagnate

Raghuram Rajan | Posted 03.22.2015 | World
Raghuram Rajan

In emerging markets, slow growth in the advanced economies has shut down a traditional development path: export-led growth. As a result, emerging markets have had to rely once again on domestic demand. This is always a difficult task, given the temptation to over-stimulate.

Global Economy Faces Strong and Complex Crosscurrents

Olivier Blanchard | Posted 03.22.2015 | Business
Olivier Blanchard

On the one hand, major economies are benefiting from the decline in the price of oil. On the other, in many parts of the world, lower long-run prospects adversely affect demand, resulting in a strong undertow.

This Challenge Will Determine the Fate of the World's Market Economies

Dani Rodrik | Posted 03.18.2015 | World
Dani Rodrik

Today's technological revolutions calls for a comprehensive reinvention. The potential benefits of discoveries and new applications in robotics, biotechnology, digital technologies and other areas are all around us and easy to see. Indeed, many believe that the world economy may be on the cusp of another explosion in new technologies.

U.S. Should Agree to Democratize the IMF -- Or Get Out of the Way

Wu Zhenglong | Posted 03.14.2015 | World
Wu Zhenglong

In essence, the reforms have been crafted to democratize the IMF governance. Now, those sitting at the head of the IMF's table are either American allies, or its Western partners, whereas the developing countries are underrepresented as a whole. They do not have a say in the IMF decision-making process, or in protection of their fundamental interests.