March, 2016 Economy


Project Syndicate, Carmen Reinhart
CAMBRIDGE – As Chinese policymakers attempt to address what ails their country’s economy, they are pursuing two goals that will almost certainly turn out to be incompatible. Very seldom have central banks been able to maintain a fixed exchange rate over an extended period of time while providing liquidity to troubled banks and an ailing economy.


Project Syndicate, Abdul Abiad and Shang-Jin Wei
MANILA – There is no doubt that China’s ongoing growth slowdown has had far-reaching effects on the global economy. But its role in the sharp fall in commodity prices that has occurred since 2014 – an outcome that has been devastating for commodity-exporting countries, including once-dynamic emerging economies – is more limited than the conventional wisdom suggests. In fact, China’s slowdown is only a part of the commodity-price story.

China, Economy, Global, Politics

commodity prices global trade

Project Syndicate, Daniel Gros
BRUSSELS – China has just announced that last year, for the first time since it began opening up its economy to the world at the end of the 1970s, exports declined on an annual basis. And that is not all; in value terms, global trade declined in 2015. The obvious question is why.

Turkish President Recep Tayyip Erdogan attends a ceremony commemorating the placement of the final section of Yavuz Sultan Selim Bridge in Istanbul on 6 March 2016. Photo by Getty Images.

Fadi Hakura, Associate Fellow, Europe Programme
Political interference in monetary policy and an uncompromising approach to foreign affairs are hampering Turkey’s efforts to escape the middle income trap.
All is not well in the Turkish economy. At a time when global financial markets are jittery, Turkey is witnessing a rapid depreciation of the lira and accelerating inflation, driven largely by the political interference of President Recep Tayyip Erdogan in the Turkish central bank.

Economy, Turkey

Patrick Kingsley and Jennifer Rankin, theguardian
What does the deal involve?
It sounds simple enough: one Syrian refugee on the Greek islands will be returned to Turkey and, in exchange, a Syrian asylum seeker in Turkey will be found a home in Europe.