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Journal Article
Foreign direct investment: financial benefits could surpass gains in technology
Many emerging markets offer financial incentives to attract foreign direct investment, believing that such investment provides advanced technology or management skills. However, it appears developing economies such as China could benefit more from multinational corporations? financial resources.
Journal Article
China's slowdown may be worse than official data suggest
To get a more accurate picture of China's economy, economists examine other measures of activity that closely track growth but are less prone to political interference than output data. Industrial electricity consumption, a major production input, serves as such a proxy.
Journal Article
Why are exchange rates so difficult to predict?
A quarter-century quest hasn't found the elusive links between economic fundamentals and currency values. ; The U.S. dollar has been losing value against several major currencies this decade. Since 2001-02, the U.S. currency has fallen about 50 percent against the euro, 40 percent against the Canadian dollar and 30 percent against the British pound .
Journal Article
With reforms in China, time may correct U.S. current account imbalance
The U.S. current account deficit has deepened significantly since the late 1990s. This shortfall?the value of net exports of goods and services, international financial investment net income and transfer payments?was $803 billion at its peak in 2006, or 6 percent of U.S. gross domestic product (GDP). Conversely, China, Germany, Japan and the oil-exporting countries have been running current account surpluses that have risen substantially (Chart 1). This divergence has raised concerns among policymakers, economic researchers and private investors about whether these imbalances are sustainable ...
Journal Article
Durable goods and the collapse of global trade
Global trade has experienced a stunning collapse in the current recession, with the World Trade Organization estimating a decrease of roughly 9 percent in 2009--the biggest contraction since the Second World War. The swift decline caused substantial damage to the global economy, hitting Japan and other countries with large trade sectors especially hard. It also raised concerns that the trade collapse would worsen the global recession and delay recovery. ; Several factors contributed to the global trade collapse. However, the ultimate causes are tied to the global financial crisis that started ...
Journal Article
Asia recalls 1997 crisis as investors await Fed tapering
Asian economies now appear better positioned to deal with adverse external financial shocks.
Journal Article
China's sputtering housing boom poses broad economic challenge
China?s economic slowdown and changing demographics cloud its housing market?s long-term prospects. While urbanization and a lack of alternative investment opportunities provide short-run support, the housing sector?s difficulties imperil China?s financial sector and the global recovery.
Report
Gauging International Shocks and Their Implications
The Globalization and Monetary Policy Institute cosponsored a conference on ?International Linkages in a Globalized World and Implications for Monetary Policy? with the School of International Business Administration at Shanghai University of Finance and Economics (SHUFE) and Shanghai Institute of Finance and Law. The event was held at SHUFE on June 21?22.
Report
International Conference on Capital Flows and Safe Assets
From just after the Great Depression until the beginning of the 2007?09 financial crisis, the global financial system was relatively quiet, with no major calamity afflicting advanced economies. Although emerging markets periodically confronted crises, these events were usually limited to a small set of countries that tended to recover quickly. The devastating consequences of the financial crisis caught most policymakers and economists off guard. Policymakers and researchers from the U.S., China and Europe who studied triggers of the crisis gathered to discuss global financial industry ...
Report
Micro-Foundations of International Trade, Global Imbalances and Implications on Monetary Policy
Researchers from the U.S., Canada and China gathered in Shanghai to explore exchange rates, offshoring and trade policies. Research presented at the conference employed microdata of trade volumes and prices at the firm and product levels, which provide valuable information on crucial global economic issues such as trade imbalances, economic development and wage inequality.