Newsletter: A monthly brief of new insights on important economic, financial and policy issues.
Global Economic Dynamics
U.S. stock markets are hitting record highs, often led by so-called tech stocks like Google, Facebook, and Amazon, now valued at three to five times their 2008 prices. In contrast to tech titans like Microsoft and Apple that produce and sell technology products, however, these companies earn their revenue largely through advertising.
As in most matters, President Trump has taken an assertive, often belligerent, tone in addressing the issue of trade. He has talked of trade deals being the “worst ever,” and threatened to tear up trade agreements and dissolve long-term relationships often with long-standing allies. In his world, trade agreements should benefit the United States in general and U.S. jobs in particular, or at a minimum provide a level playing field on which U.S. business can compete.
At a May 2017 forum in Beijing, China’s President Xi Jinping expounded on the evolving opportunities for China’s Belt and Road Initiative (BRI)1
to connect with the development strategies of various other countries, specifically naming neighbors Russia, Kazakhstan, Vietnam, Laos, and Myanmar.
Despite the current low unemployment rate, unemployed Americans experience much longer waits to find a new job than in past cycles.
The decline of the Chinese yuan against the U.S. dollar is matched by its decline against the country’s Other Important Trading Partners Index despite a booming trade surplus.
Surprising progress on climate change highlights the opportunity offered by a new, incremental approach to emissions reductions.
China’s structural shift toward innovation and services parallels its push toward clean energy.
Harsh austerity has both increased Greece’s debt burden and suppressed its economy.
Greece and China are both highly leveraged but face wholly different challenges.
As economies age, good growth is harder to come by.
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