This article details the reduced appreciation of the chinese yuan possible due to accelerated outflow of international capital. This doesn't pose any serious threat to chinese industry or trade but does show a pessimistic outlook on the Chinese economy. HOwever this reduced appreciation of the chinese yuan could force the government re-evaluate its exchange rate mechanism.
This article highlights the potential for a new free trade zone containing mostly south and east african countries. Many problems may arise from this new institution, however, these legal and regulatory roadblocks are seen to slow down any chance of a new trade bloc in southern Africa.
This article highlights a free trade deal between many south American countries and the united states which apparently will increase labor standards there.
BRazilian Beef giant JBS has been allowed massive growth because of low tariffs in and out of BRazil to countries such as Belgium and the Netherlands. Yet, its Fresh Beef has yet to see the outside of Brazil because of many developed nations high health standards. Maybe if JBS can overcome these standards its growth will continue.
There is a risk of a double-dip recession because of the chronic lack of aggregate demand and the failure of the austerity packages provided by the European countries.
China is intervening in currency markets to make its own currency cheaper, which allows for chinese goods to be less expensive then in the USA. The U.S. Senate is seeking an official investigation into this and if it concludes that China is keeping its currency artificially low then retaliatory tariffs will be set in place.
China is planning to raise income tax on the very rich. By changing the minimum income at which the bracket begins from $450 to $315 a month. Even though a nation that has a great disparity between rich and poor the the tax system will have not as large an effect as say in america. This is because only a small amount of chinese file income tax forms at all so the overall lessening of government income willl not take such a direct hit.
This industry speciifc article discusses the demand by the Steel manufactures for supply side policy in india to combat rising inflation. They also want an end to monetary policy which they feel is not working. The government has stated that inflation is falling and there is growth.
Paul Krugman offers his opinion on the use of monetary policy in todays economy. He states that "monetary policy can still work if you can credibly make commitments about future monetary policy"
In general German businesses remain confident and productive, "The business-cycle traffic lights still signal 'green.' " (nytimes article). A recent Confidence meter has just gone down from 111.3 to 111.0, this signals a steading of the business cycle or another recession, although most signs lead to the contrary.
According the to the Census there were 17.3% less startups in the US since march 2009. This is mostly due to the lack of financing available, if loans arent available small start-ups are unlikely to arise.
The Recovery Act of 2009 gave 787 billion dollars for economic stimulus, this action by the government is a prime example of Keynesian economic theory as the government is bolstering economic growth and development while simultaneously reducing unemployment. It is recorded that 1.5 million private sector jobs have been saved and there has been six straight quarters of economic growth.
China's fast growth may be a contributor towards higher inflation rates. If high Inflation rates persist it is believed that the leadership will come under pressure. High food and housing prices are the measures of inflation.
This article explains how Germany has been able to stave off current trends and maintain a robust economy. Instead of firing workers to save money it has retained them saving their human capital. The also excel because they focus on small businesses that are usually niches and they also have very smart outsourcing practices.
This Article talks about the demand for the installation of elevators in Kabul businnes buildings. Unfortunetly the instability of the city matched with earthquake prone nature of teh region make any installation a difficult investment.
As the recession crawls on we see the reduction of many public goods. In this NY times article we hear about the cuts to military spending in the USA. Defense Secretary Robert Gates plans to cut 78 BIllion dollars of the military budget in five years.
