Geography Archives: Japan

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 […]

Recent scenes of roadblocks, strikes, and even the dynamiting of a vice-minister’s home in the Bolivian department (administrative district) of Potosi, reminiscent of the days of previous neoliberal governments, have left many asking themselves what is really going on in the “new” Bolivia of indigenous President Evo Morales. Since July 29, the city of Potosi, […]

Campaigning for the Democratic Presidential nomination in 2008, Senator Barack Obama said: “I don’t want to just end the war, but I want to end the mindset that got us into war in the first place.” But as Andrew Bacevich notes in his new book, Washington Rules: America’s Path to Permanent War, as President, Barack […]

Our friends at the Economic Policy Institute have already done a pretty good job burying the claim from Reinhart-Rogoff that high ratios of debt to GDP will lead to lower growth, but in DC, no bad theory stays dead for long.  With that in mind, let’s throw a little more dirt on the grave. The […]

Where is this elusive recovery?  The banks, some say, have “recovered.”  Yet they remain dependent on Washington, they do not make the loans needed for a general recovery, and many medium and small banks keep collapsing.  The stock market shows no recovery.  The Dow index was 14,000 in late 2007 when capitalism hit the fan, […]

  Excerpt: [T]he conventional growth accounting based on the national income identity does not provide an adequate framework for assessing the contribution of components of demand to growth.  The standard exports/GDP ratio overestimates the income (value-added) generated by exports because it ignores the foreign (import) contents of exports, which tend to be particularly high in […]

  Excerpt: Importantly, the initial collapse and following standstill in economic activity and nominal levels of GDP is also extremely bad news for the strategy of fiscal consolidation itself.  On the one hand, to keep on servicing interest payments (see above), nominal debt will continue to go up.  On the other hand, nominal GDP goes […]