Tag: Economic Conditions and Trends

U.K. Government Goes Full Tilt on Tax Cuts and Free-Market Economics

LONDON — Prime Minister Liz Truss of Britain on Friday gambled that a hefty dose of tax cuts, deregulation and free-market economics could reignite growth before the next general election as her government unveiled a package of measures that is likely to determine its electoral success or failure. Breaking sharply with the era of the […]

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War, Inflation and Squandered Credibility

Putin obviously doesn’t have similar concerns. His Wednesday speech was full of apocalyptic rhetoric, portraying Russia as a nation under attack by the whole West. But he didn’t announce the kind of full-scale mobilization that rhetoric would seem to imply. Instead, he announced a series of half-measures that defense experts doubt will do much to […]

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Central Banks Accept Pain Now, Fearing Worse Later

A day after the Federal Reserve lifted interest rates sharply and signaled more to come, central banks across Asia and Europe followed suit on Thursday, waging their own campaigns to crush an outbreak of inflation that is bedeviling consumers and worrying policymakers around the globe. Central bankers typically move slowly. That’s because their policy tools […]

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Russia’s Invasion Shadows U.N. Assembly Amid ‘Colossal Global Dysfunction’

Divided by war, strained by shortages and faced with the cataclysm of global warming, dozens of world leaders convened at the United Nations in New York on Tuesday for the first full, in-person General Assembly since the pandemic began. Among all the global crises, Russia’s invasion of Ukraine dominated the day, with heads of state […]

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Egypt Feels Pain of Global Disruptions Wrought by War and Pandemic

Some tax withholding practices were also changed, he added, reducing the cash he can keep on hand. While he understands the government is aiming to increase revenue, he said the approach could deter entrepreneurship. “It’s suffocating small businesses,” he said. Gamal Osman, 59, a warehouse worker in Tanta, a city about two hours north of […]

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Inflation Remains Voters’ Top Concern. Can Republicans Keep Their Focus?

Zach Nunn, an Iowa Republican challenging one of the House’s most vulnerable Democrats, had been talking for months about rising prices when a Texas congressman two weeks ago invited him to visit the Mexican border — to see the fentanyl confiscated, hear tales of dying migrants and witness overwhelmed border agents. Mr. Nunn took it […]

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Britain’s Spending and Tax Cut Plans Worry Investors in Its Debt

Much of the outward business of government in Britain is grinding to a halt during 10 days of national mourning until the state funeral for Queen Elizabeth II, when schools, doctors offices and many shops will close. But through it all, the financial markets have been grumbling with an unease about Britain’s economic outlook. High […]

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Oppressive Blackouts Force Lebanese to Change Rhythm of Life

BEIRUT, Lebanon — The second the light above Hasmik Tutunjian’s bed came on at midnight, she said a prayer of thanks and got up quickly. She did not know how much time she had before she would be plunged back into darkness. First, Ms. Tutunjian, 66, stripped the sheets off the bed — soaked with […]

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As Crises Mount, Europe Turns Once Again to Big Spending

BRUSSELS — Nationalizations. Subsidies. Cash handouts. Price caps. Profit taxes. It’s back to 20th-century economics in Europe. Governments are resorting to old-school solutions, long dismissed as bad policy, throwing vast amounts of money at the energy crisis engulfing the region, in a bid to avert a political, social and economic meltdown. The standoff with Russia […]

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Wartime Economics Comes to Europe

The West isn’t exactly at war with Russia. However, it isn’t exactly not at war, either. Western weapons have helped Ukraine to stall Russia’s invasion and even to counterattack, while Western economic sanctions have clearly created serious problems for Russian industry. Russia has retaliated with a de facto embargo on exports of natural gas to […]

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Twilight of Entrepreneurs in China as More Leave the Country

BEIJING — Wealthy and powerful entrepreneurs in China were once idolized by the public, doted on by the government and courted by foreign investors. They helped build the Chinese economy into a powerhouse, and with it became the global face of Chinese business in a freer era, amassing billion-dollar fortunes, buying mansions overseas and holding […]

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Liz Truss, New UK Leader, Lays Out Energy Price Cap Plan

LONDON — Scrambling to spare millions of households the pain of skyrocketing energy bills this winter, Britain’s new prime minister, Liz Truss, announced a sweeping plan on Thursday to freeze gas and electricity rates for two years, at a cost of tens of billions of pounds to the British Treasury. The plan, rolled out by […]

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The Days of Energy Deregulation Are Over in Europe

After decades of promoting a free-market approach to the electricity and natural gas industries, European governments are taking back control of these vital functions. Record-high energy prices, partly the result of Russia’s throttling of gas supplies, are prompting lawmakers to discard economic orthodoxy and undo years of painstaking deregulation. Britain, perhaps the most market-oriented of […]

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Shock Waves Hit the Global Economy, Posing Grave Risk to Europe

Russia’s invasion of Ukraine and the continuing effects of the pandemic have hobbled countries around the globe, but the relentless series of crises has hit Europe the hardest, causing the steepest jump in energy prices, some of the highest inflation rates and the biggest risk of recession. The fallout from the war is menacing the […]

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From the U.S. to China, Major Economies Are Stalling. But Not India.

NEW DELHI — As global economic growth slows sharply, with many major economies gripped with worries of recession, there has been a conspicuous exception: India. The Indian government says the country’s economy remains on track to grow 7 percent or more this year, more than double the projections for global growth, which has been weighed […]

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The World Is Getting Less Flat

In fact, however, hyperglobalization stalled out around 2008; international trade as a share of the world economy has been more or less, um, flat for 14 years. And there are three reasons to believe that globalization will actually retreat in the years ahead, though probably not to the extent it did in the interwar years. […]

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Breaking Taboo, Germany Extends Life of 2 Nuclear Reactors

BERLIN — Germany will keep two of its three remaining nuclear power plants operational as an emergency reserve for its electricity supply, its energy minister announced on Monday, delaying the country’s plans to become the first industrial power to go nuclear-free for its energy. The latest decision is aimed at giving the government more room […]

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As Russia Chokes Europe’s Gas, France Enters Era of Energy ‘Sobriety’

A factory making iconic French bistro glasses is idling its furnaces to offset soaring energy costs. Cities around France are turning off streetlamps and other outdoor lighting to curb electricity use. In Normandy, some schools will start heating classrooms by burning wood to conserve natural gas. As Russia tightens its chokehold on Europe’s energy supplies, […]

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Europe’s Leaders Vow Economic Relief, Fearing Unrest

BERLIN — European governments moved this weekend to soften the blow of soaring costs and a deepening energy crisis triggered by the war in Ukraine, and scrambled to prepare for the possibility of social unrest as the days grow colder. With Europe trying to wean itself off Russian fossil fuels, and the first mass protests […]

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Wonking Out: The Nightmare After Gorbachev

Most articles on the death of Mikhail Gorbachev dwell on the political failure of his reform project. The Russian Federation, the main successor state to the Soviet Union, has not, to say the least, become a democratic, open society. Ukraine may finally have gotten there, but that very success is probably one major reason the […]

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Strikes Sweep the U.K. as Workers Demand Better Pay

For eight days in late August, the Port of Felixstowe — usually a scene of constant motion as Britain’s busiest container shipping dock — was almost devoid of activity, with few goods coming in or out. For the first time in more than three decades, its workers were on strike. The walkout escalated the workers’ […]

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Debt-Stricken Sri Lanka Reaches Initial Deal for I.M.F. Bailout

COLOMBO, Sri Lanka — Sri Lanka and the International Monetary Fund on Thursday reached a preliminary agreement on a bailout package as the bankrupt island nation tries to find a way out of a crippling economic crisis that toppled its president. The deal, which still requires final approval from the I.M.F.’s executive board, would extend […]

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U.K. Prime Minister Race Ends With Little Focus on Economy

LONDON — Exhausted rather than exuberant, the two candidates to succeed Prime Minister Boris Johnson held their last scheduled joint campaign appearance on Wednesday, trading final jabs in a contest that has often seemed to have little to do with the economic storm clouds gathering over Britain. The underdog, Rishi Sunak, claimed that his economic […]

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Lockdowns in China, and North Korea, Deal Double Blow to Bridge City

SHENYANG, China — There are plenty of reasons that business has been lousy recently at Steven Wen’s clothing store in Shenyang, the largest city in northeastern China. Local officials locked down the city for one month this spring after detecting just a few dozen coronavirus cases among its nine million people. Residents have guarded their […]

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Wonking Out: Europe and the Economics of Blackmail

Four decades ago I spent a year working in the U.S. government, on the staff of the Council of Economic Advisers. (For those wondering: Yes, this was the Reagan administration; no, I wasn’t a Republican.) It was a technocratic job. I was the chief international economist; the chief domestic economist was a guy named Larry […]

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Jerome Powell Warns That War on Inflation May Be Painful

JACKSON, Wyo. — Jerome H. Powell, the chair of the Federal Reserve, warned that the central bank’s campaign to beat back the fastest inflation in decades will come at a cost to workers and overall growth. But he emphasized that the Fed must continue raising interest rates — and keep them elevated for a while […]

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UK Energy Price Cap to Rise 80%, Regulator Says

Energy prices paid by most British households are set to rise 80 percent this fall, putting further pressure on consumers and stoking inflation. On Friday, Ofgem, the government’s energy regulator, said the so-called cap on what a typical household would pay for electricity and natural gas over a year would rise to 3,549 pounds (about […]

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What Can We Do to Bring Inflation Down?

Not long ago, many people were predicting a long, hot summer of inflation. To their surprise — and, for some Republicans, dismay — that isn’t happening. Overall consumer prices were flat in July, and nowcasts — estimates based on preliminary data — suggest that inflation will remain low in August. However, I don’t know any […]

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Economic Aid, Once Plentiful, Falls Off at a Painful Moment

What is happening at the William Temple House is emblematic of the economic situation. Demand for food is swelling again, and officials here blame rising prices and lost federal aid. The people seeking help come from a wide variety of backgrounds: parents, retirees struggling to stretch Social Security benefits, immigrants who speak Mandarin, college graduates […]

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Of Dictators and Trade Surpluses

According to a new NBC News poll, U.S. voters now consider “threats to democracy” the most important issue facing the nation, which is both disturbing and a welcome sign that people are paying attention. It’s also worth noting that this isn’t just an American issue. Democracy is eroding worldwide; according to the latest survey from […]

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