Tag: International Trade and World Market

Liz Truss’s Tax Cuts Won’t Help Britain’s Economy

Britain is in a very difficult economic position. The British economy, like the U.S. economy, seems to be seriously overheated, with substantial amounts of inflation driven by high domestic demand. Unlike America, it is also facing the full force of Europe’s energy crisis, driven by the efforts of President Vladimir Putin of Russia to use […]

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Dragon Fruit Is Showing Up All Over. So Why Are Farmers Leaving the Business?

HOMESTEAD, Fla. — Dragon fruit, the colorful cactus fruit also known as pitaya, has brought its subtle flavor far and wide this summer, from iced teas at Taco Bell to fruit drinks at Starbucks. So you’d think farmers would be having a banner year. But in Florida, the business hasn’t been so rosy. In early […]

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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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Prime Minister Liz Truss Pivots From Queen’s Funeral to U.K.’s Crises

LONDON — The flowers have been cleared. Union Jacks no longer fly at half-staff. Ads have replaced Queen Elizabeth II’s image on bus shelters. A day after burying their revered monarch, Britons returned to normal life on Tuesday to confront a torrent of pressing problems they had set aside in 10 days of mourning. Hours […]

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How a Quebec Lithium Mine May Help Make Electric Cars Affordable

About 350 miles northwest of Montreal, amid a vast pine forest, is a deep mining pit with walls of mottled rock. The pit has changed hands repeatedly and been mired in bankruptcy, but now it could help determine the future of electric vehicles. The mine contains lithium, an indispensable ingredient in electric car batteries that […]

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Wonking Out: What Ukraine Needs From Us

Lately I’ve been seeing what seems like a growing number of reports about Ukraine’s economic difficulties. And it definitely makes sense to focus more on the country’s economy now that the tide seems to have turned in Ukraine’s favor on the battlefield. But it’s hard to avoid suspecting ulterior motives for that scrutiny. Supporters of […]

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How a Rail Strike Could Reinvigorate Supply Chain Disruption

Just as the global supply chain flashes signs of returning to normal, a new crisis now threatens to disrupt the transport of a vast range of goods, from agricultural crops to lumber to coal. If tens of thousands of rail workers follow through on threats to strike as soon as Friday in pursuit of better […]

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Europe Plans to Ban Goods Made With Forced Labor

The European proposal would make the national authorities of the bloc’s 27 members responsible for enforcing the ban. But critics say that failing to identify the regions or industries that are the biggest culprits, as well as leaving individual nations to determine how to implement the policy, stood out as major weaknesses. In the United […]

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A Look at the Misery Index and Inflation

Back when inflation was first taking off in the late 1960s and early 1970s, Arthur Okun — an economist who served John F. Kennedy and Lyndon Johnson — suggested a quick-and-dirty measure of the state of the economy. His Economic Discomfort Index — which Ronald Reagan later renamed the Misery Index — was just the […]

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How Silicon Chips Rule the World

When I first arrived in Taiwan as a college student in the summer of 1973, there was no ambiguity whatsoever about the American role on the island. Over the previous two years, President Richard M. Nixon and his national security adviser, Henry Kissinger, had opened relations with the People’s Republic of China in Beijing. But […]

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Climate Change Could Worsen Supply Chain Turmoil

Chinese factories were shuttered again in late August, a frequent occurrence in a country that has imposed intermittent lockdowns to fight the coronavirus. But this time, the culprit was not the pandemic. Instead, a record-setting drought crippled economic activity across southwestern China, freezing international supply chains for automobiles, electronics and other goods that have been […]

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EU Leaders Say Putin’s Gas Power Is Weakening

BERLIN — Not long after Russian forces invaded Ukraine, another mobilization began. European energy ministers and diplomats started jetting across the world and inking energy deals — racing to prepare for a rough winter should Russia choose to cut off its cheap gas in retaliation for Western sanctions. Since then, President Vladimir V. Putin of […]

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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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India’s Electric Vehicle Push Is Riding on Mopeds and Rickshaws

In the United States, luxury-car buyers are snapping up Teslas and other electric cars that cost more than $60,000, and even relatively cheap models cost more than $25,000. Here in India, those are all out of reach of the vast majority of families, whose median income is just $2,400. But an electric vehicle movement is […]

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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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U.S. Restricts Sales of Sophisticated Chips to China and Russia

The Biden administration has imposed new restrictions on sales of some sophisticated computer chips to China and Russia, the U.S. government’s latest attempt to use semiconductors as a tool to hobble rivals’ advances in fields such as high-performance computing and artificial intelligence. The new limits affect high-end models of chips known as graphics processing units, […]

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Portugal Could Hold an Answer for a Europe Captive to Russian Gas

Portugal has no coal mines, oil wells or gas fields. Its impressive hydropower production has been crippled this year by drought. And its long-running disconnect from the rest of Europe’s energy network has earned the country its status as an “energy island.” Yet with Russia withholding natural gas from countries opposed to its invasion of […]

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Europe’s Gonna Party Like It’s 1979

Which it will. Just letting things rip isn’t an option, not in a democracy anyway. Without government intervention, energy prices would rise so much that millions of families would be financially ruined. Something has to give. In Britain specifically, the policy picture is especially murky because Liz Truss, the most likely successor to Boris Johnson, […]

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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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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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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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Indiana Governor Leads Delegation in Visit to Taiwan for Trade Talks

A delegation including Indiana’s governor arrived in Taiwan on Sunday to begin trade talks with Taipei amid increased U.S. political tensions with China, which launched a barrage of military drills near the island in response to visits this month by American government officials. The delegation, including Gov. Eric J. Holcomb; Bradley B. Chambers, Indiana’s secretary […]

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Europe’s Scorching Summer Puts Unexpected Strain on Energy Supply

ASERAL, Norway — In a Nordic land famous for its steep fjords, where water is very nearly a way of life, Sverre Eikeland scaled down the boulders that form the walls of one of Norway’s chief reservoirs, past the driftwood that protruded like something caught in the dam’s teeth, and stood on dry land that […]

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U.S. to Begin Formal Trade Talks With Taiwan

The Biden administration said on Wednesday that it would begin formal trade negotiations with Taiwan this fall, after several weeks of rising tensions over the island democracy that China claims as its own. The announcement marks a step toward a pact that would deepen economic and technological ties between the United States and Taiwan, after […]

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Falling Oil Prices Defy Predictions. But What About the Next Chapter?

When oil prices fall, many costs for industry and agriculture, including chemicals and fertilizer, generally follow. And shipping becomes more economical. But when they rise sharply, as they did in 2008 and in the 1970s, they tend to increase other prices and suppress the overall economy. And political fallout often ensues. Predicting energy prices has […]

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Japan Bounces Back to Economic Growth as Coronavirus Fears Recede

TOKYO — Restaurants are full. Malls are teeming. People are traveling. And Japan’s economy has begun to grow again as consumers, fatigued from more than two years of the pandemic, moved away from precautions that have kept coronavirus infections at among the lowest levels of any wealthy country. Lockdowns in China, soaring inflation and brutally […]

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Wonking Out: The Meaning of Falling Inflation

Inflation is coming down — fast. Gas prices, defying predictions of a nightmare summer for motorists, are leading the parade: The majority of gas stations in the United States are already charging less than $4 a gallon, and declining wholesale prices suggest that retail prices still have farther to fall. Food prices are also coming […]

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U.S. Bid to Cap Russian Oil Prices Draws Skepticism Over Enforcement

WASHINGTON — The Biden administration’s push to form an international buyers’ cartel to cap the price of Russian oil is facing resistance amid private sector concerns that it cannot be reliably enforced, posing a challenge for the U.S.-led effort to drain President Vladimir V. Putin’s war chest and stabilize global energy prices. The price cap […]

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Pelosi’s Taiwan Visit Risks Undermining U.S. Efforts With Asian Allies

The Biden administration has spent months building an economic and diplomatic strategy in Asia to counter China, shoring up its alliances and assuring friendly countries that the United States is in the region for the long haul. The president has sent top military officials to seal new partnerships, and paid attention to a tiny nation […]

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