Geography Archives: Japan

There has been much publicity about the so-called “currency war” arising from the discussions at the recent G20 meeting.  Can you explain what is meant by currency war? The discourse, the rhetoric, on the currency war is very superficial and even misleading.  As everybody knows, what is being said is that the Chinese yuan is […]

Negotiations on Iran’s nuclear program are due to start again shortly, and once again the European Union is called upon as a “mediator.”  This is no minor challenge.  With Iran insisting on discussing Israel’s nuclear capacity and the United States preparing a tougher uranium swap agreement, a deal seems as far away as ever.  Nevertheless, […]

  In 2009, the European Union, United States and Mexico filed a complaint with the World Trade Organisation (WTO) against China’s export restrictions on certain raw materials, including bauxite, coke, fluorspar, silicon carbide and zinc.  They said that, firstly, these constraints — in the form of export taxes, quotas, licences and so on — caused […]

  So there are no technological fixes [to the environmental problem caused by increasing consumption] in sight? I’ve gone on from the basic footprint concept to demonstrate a couple of other interesting spin-offs.  The assumption seems to be, in the mainstream, that improved technology, improved material and energy efficiency will help to solve this problem. […]

If the G-20 is going to be nothing more than a talking shop on economic issues, they ought to at least talk about the economic problems that really matter, and the ones that they can do something about.  Not that currency values don’t matter — they are actually very important.  And it is interesting to […]

  Wages and Depressions Sooner or later any bubble bursts, leading to falling asset prices as investors flee to safe liquidity.  Distress selling and debt liquidation by the market participants follow.  For Irving Fisher (1933), it is of key importance that an asset price deflation leads — via falling asset prices and a distorted financial […]

Introduction The IMF’s most recent World Economic Outlook (WEO) projects world economic growth will slow, from 4.8 percent in 2010 to 4.2 percent next year.  Throughout the report, there are numerous concerns expressed about the “fragility” of the global economic recovery.  The Acting Chair of the Executive Board states that “[t]he recovery is losing momentum […]

Here comes the travail of crisis.  The more they talk about coordination, the more it becomes necessary to concentrate on the conflicts revealed by the very talk of coordination.  The G20 finance ministers’ meeting, held in South Korea on Friday, has already been mortgaged by the case opened by US Treasury Secretary Timothy Geithner regarding […]

The slanging match over currency and monetary policies at the annual Fund-Bank meetings, held over the second weekend of October, points to the disarray in global economic governance.  While the US sought to mobilise IMF support for an effort to realign exchange rates and ensure an appreciation of the renminbi in the wake of China’s […]

Introduction Recently governments, economists, and international financial institutions have been debating the merits of further fiscal stimulus to combat the Great Recession versus fiscal austerity or “adjustment” — that is, higher taxes and/or lower government spending — to combat budget deficits.  Some supporters of austerity have gone as far as arguing that fiscal adjustment could […]

The Consumer Price Index rose 0.1 percent in September as consumer energy price inflation slowed to 0.7 percent after gains of 2.6 and 2.3 percent in July and August.  Overall prices have grown at a 2.7 percent annualized rate over the last three months.  The core CPI remained unchanged over the month and has now […]

The past decade has been one in which export-led economic strategies have come to be seen as the most successful, driven by the apparent success of two countries in particular — China and Germany.  In fact, the export-driven model of growth has much wider prevalence as it was adopted by almost all developing countries. This […]

The European tour of Wen Jiabao is taking place while the conflict between the US and China over the yuan/dollar exchange rate is getting worse.  At the same time, a similar if less noisy clash exists between China and the Eurozone countries.  Last but not least, tensions have also arisen in the Sino-Japanese relations following […]

As he has every year since becoming President of the Islamic Republic, Mahmoud Ahmadinejad is coming to New York this week to attend the United Nations General Assembly.  Several important U.S. media outlets have either already conducted (MSNBC, ABC) or will conduct (PBS’ Charlie Rose and CNN’s Larry King) interviews with Ahmadinejad in connection with […]

The new regulations on banks’ capital requirements known as Basel 3, made known to the public in mid-September, are a major institutional boost to the monopolistic position of the largest banks.1  In the new framework the capital that banks must hold against lending activities has been raised from a ratio of 2%, established by Basel […]

We are being told that Germany is successfully recovering from the crisis.  However, despite the recovery, the German economy is below most other countries’ in relation to the pre-crisis levels of output.  When the crisis began the German economy’s dependence on exports caused a sharp fall in industrial production.  The initial liquidation and the subsequent […]

The International Bank for Reconstruction and Development (IBRD) was established at Bretton Woods in July 1944, at the initiative of forty-five countries that had come together for the first monetary and financial conference of the United Nations.  In 2010, it had 186 member countries, with Kosovo its latest addition (it joined in June 2009). The […]

We noticed a small news item, reported from Tehran, which we think deserves more media attention and reflection in the West than it received.  According to the story, Chinese Transport Minister Liu Zhijun is expected to visit Iran Sunday to sign a $2 billion contract to build a 360-mile-long railway linking key Iranian destinations that […]

The New York Times told readers that the Fed’s ability to take steps to boost the economy are limited because: The dramatic expansion of the national debt — which began in the Bush administration, via hefty tax cuts and two wars — has ratcheted up fears that, one day, creditors like China and Japan might […]

  Paul Jay: In China in June, leaders of the Chinese Communist Party said that it’s time for workers’ wages to go up.  And there’s been a lot of discussion about whether China’s actually restructuring its economy to try to boost domestic demand.  Certainly in what leaders say in other parts of the world they […]