Venkatachalam Shunmugam, Debojyoti Dey, 03 December 2010

Politicians, public servants, and commentators have been queuing up in recent months to raise their concerns about global imbalances, particularly the China-US imbalance. This column argues that while the two economies may present opposing public stances, they are quietly playing a tango that neither can step out of.

Carmine Guerriero, 21 November 2010

When is regulation more efficient than competition? This column provides a theoretical framework for thinking about these issues and explores its implications using electricity data from the US. It argues regulation can be more efficient than competition when investment inducement is salient, and that deregulation can be inefficiently implemented when consumer groups are too politically powerful.

Gianmarco Ottaviano, Giovanni Peri, Greg Wright, 18 November 2010

Manufacturing production and employment in the US has been in decline over recent decades, often with the finger pointed at immigration and globalisation. This column presents evidence from the US between 2000 and 2007 to show that immigrant and native workers are more likely to compete against offshoring than against each other. Moreover, offshoring's productivity gains can spur greater demand for native workers.

Jacques Melitz, 16 November 2010

Earlier this year, the fiscal situation in Greece caused turmoil across Europe. This column examines why the financial difficulties of several state governments in the US are not having similar impacts on its economy.

Graziella Bertocchi, Arcangelo Dimico, 14 November 2010

US commentators regularly lament the country’s racial and ethnic inequality. This column presents data from 1870 and 1940-2000 to argue that the divide has its roots in the slave trade and that its legacy persists today through the racial inequality in education.

Priya Nandita Pooran, 14 November 2010

Will the US Dodd-Frank Act work? This column argues that unless institutional oversight shifts from the current fragmented structure to a federal one, the Dodd-Frank reforms could be prevented from having any significant positive effect on the surveillance of the financial system.

Michael Moore, Thomas Prusa, 08 November 2010

Last month the US Department of Commerce announced a series of proposals to strengthen the enforcement of US trade laws. This column argues that these proposals will directly undercut President Obama’s trade commitments announced in his 2010 State of the Union Address – reducing access to critical inputs for US firms and increasing the chances that they face the same treatment abroad. It begs US policymakers to reconsider.

Richard Portes, 04 November 2010

The threat of a currency war between the US and China is one of the main concerns for the G20 ahead of this month’s meeting in Seoul. This column say that while policymakers appear to grasp some of the issues, they underestimate the impact of quantitative easing by large economies on exchange rates worldwide.

Fred Bergsten, 01 November 2010

Yiping Huang recently argued that the US would not win a currency war over global imbalances. This column agrees that a currency or trade war would be lose-lose. But it says that such a conflict is inevitable unless the root causes of the growing imbalances are addressed

Alan Auerbach, Maurice Obstfeld, 23 October 2010

As the debate over China’s exchange-rate policy and the US response intensifies, this column argues that a large Chinese revaluation – whether forced of voluntary – will not be a free lunch for the US. Drawing on a theoretical cost-benefit analysis, it suggests that if the US wants to create jobs at the lowest costs, it should first consider further fiscal expansion.

Yiping Huang, 20 October 2010

On 19 October, the Chinese central bank announced a series of rate hikes. This column argues that the moves were aimed at combating domestic inflation and addressing the risks of an asset bubble.

Yiping Huang, 19 October 2010

The ongoing global imbalances has strengthened calls for the US to declare trade war with China. This column argues that the US did not emerge victorious from the last currency war with Japan, and against China the chances are even slimmer. Instead the upcoming G20 meeting should focus on a broad range of structural adjustments from both sides.

Loukas Karabarbounis, 16 October 2010

Why do Europe and the US, both affluent regions, differ so much in the size of their welfare state? To answer this question, this column examines OECD countries between 1975 and 2001, finding that countries with wealthier rich- and middle-classes are associated with a smaller welfare state while those with a richer poor class are associated with a larger one – supporting the “one dollar, one vote” explanation.

Gérard Roland, 09 October 2010

How should China respond to the threat of tariffs from the US? This column provides a solution that could result in the desired appreciation of the renminbi and at the same time allow China to take the lead on climate change.

Chris Herbst, Erdal Tekin, 09 October 2010

Do subsidies for childcare succeed in getting parents to work and improving the wellbeing of the children? This column presents evidence from the US suggesting that childcare subsidies have an unintended consequence. In the short run, children from low-income families are worse off as their parents go off to work and they receive low-quality childcare.

Chunding Li, John Whalley, Yan Chen, 08 October 2010

As the debate over global imbalances develops, this column asks whether the discussion is based on faulty data. Using data from the US, Japan, Germany, and the Czech Republic, it argues that not taking due account of foreign affiliate sales leads to a warped view of trade in goods and services.

Willem Thorbecke, 06 October 2010

The US-China currency dispute remains heated. This column argues that if a real appreciation in the Chinese currency is not achieved through exchange rate adjustment, it will happen through inflation in China and deflation in the US. It says a better Chinese policy mix would involve nominal appreciation of the renminbi combined with absorption-increasing policies such as developing human infrastructure.

Joshua Aizenman, Rajeswari Sengupta, 05 October 2010

Are China and Germany both responsible for the global imbalances? Using four decades of current-account data, this column argues that the role of the US should not be overlooked. A rise in the US’ current-account deficit is matched one for one with a rise in China and Germany’s surpluses. But this relationship – and the global imbalances with it – may well be coming to an end.

Jordi Blanes i Vidal, Mirko Draca, Christian Fons-Rosen, 28 October 2011

This updated column, first published in October 2010, takes on new resonance following recent scandals in the UK surrounding allegations that lobby groups may have gained undue influence among senior politicians. The column investigates how much former US government officials cash in on their political connections when working as lobbyists. It finds that once the politician for whom they worked leaves office, lobbyists’ revenue falls 20% – suggesting that lobbyists are paid more for who they know than what they know.

Daniel Gros, 08 October 2010

With the US threatening to label China a “currency manipulator”, this column presents a plan to address global imbalances without risking a trade war. It proposes a “reciprocity” requirement – if the US can’t buy Chinese government bonds, then China can’t buy US bonds either.

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