In part of my new MFin elective Understanding the Global Economy and Financial System I explore the changing views of economists on international trade, which has been one of the most powerful causes of global economic growth over centuries. * The … Continued
The first part of my new MFin elective Understanding the World Economy and Financial System next term will explore the question, why are some countries richer than others? * One of the most important, interesting but hotly contested questions in economics … Continued
It’s generally agreed that we face an unusually uncertain outlook this year: elections in France and Germany, the path for the UK’s leaving of the European Union and above all, how will President Trump act? Underneath the political fog there … Continued
Single cause explanations of events such as Brexit or the Trump victory are too simple. But there is an important and worrying economic background fact to both, which is that the Anglo-US style of western capitalism seems to have stopped … Continued
China’s corporate debt is high and rising fast. Most of it is in the state owned enterprise sector and is borrowed from state owned banks. So the debt problem and the responsibility for fixing it lies with the government. * Despite … Continued
The possibility that central banks might resort to extreme monetary measures, including helicopter money, is much debated in monetary policy circles. But what is “helicopter money”? * In normal times, central banks in developed countries try to control inflation and … Continued
Exchange rates are among the most important macrofinancial prices, influencing many aspects of an economy. This post introduces exchange rates and their importance for macroeconomic adjustment * What is an exchange rate? An exchange rate is a ratio, the price … Continued
I’m writing this in my hotel room in Shanghai. Being seven hours ahead of the UK meant that I had the doubtful privilege of watching the events unfold which led to the decision of a small majority of the British … Continued
The BP Statistical Review of World Energy was published last week. It contains two pieces of particularly encouraging information. First. in 2015 coal demand fell sharply. Second, carbon emissions from energy rose at the slowest rate for 25 years (other than … Continued
A new theme in explaining slow growth and productivity and rising inequality: greater monopoly power in the US. * I’ve been thinking about my forthcoming teaching for the Cambridge Advanced Leadership Programme in June, which is always an interesting session, … Continued
A condition for any market to work well is that consumers have enough information to make good decisions. This is rarely the case with services such as finance. * Theory, backed up by a lot of practical evidence, suggests that … Continued
I’ve been asked a lot recently about my view on whether the UK should leave the European Union, which is the subject of a national referendum on June 23rd. I believe that in economic terms, there is very little that … Continued
On International Women’s Day it’s nice to report some more interesting research from the International Monetary Fund (IMF), this time showing that gender diversity in senior corporate positions is positively associated with corporate profitability. * The IMF authors (Lone Christiansen, … Continued
Women’s access to health, education, economic opportunity and political power have been improving but the picture is very uneven geographically. Although most indicators improve with economic development the variation shows that a lot can be done even before countries reach … Continued
Exchange rates are ratios of the price of one currency to another. We should be careful about saying “the” exchange rate without being clear as to which particular ratio we mean and why. * Exchange rates often dominate the financial news. … Continued