An economy is simply an accumulation of transactions involving goods and services, mostly carried out by business enterprises. Their behavior is what matters, and this can be adequately perceived only on the ground, where the behavior occurs – where an economy is built, where it breaks, and where it must be fixed.
MONTREAL – Much commentary about the American economy nowadays leaves the impression that economists should fix its problems. But Washington is teeming with smart economists, and the problems remain.
An economy is like a cloud: only when inside does one realize how diffuse it is – and that what matters are the particles of vapor that it comprises.
Likewise, an economy is an accumulation of transactions involving goods and services, mostly carried out by business enterprises. Their behaviors are what matters, and they cannot be adequately perceived from the distant perspective of economic models and statistics, but only on the ground – where an economy is built, where it breaks, and where it must be fixed.
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The long-standing economic consensus that interest rates would remain low indefinitely, making debt cost-free, is no longer tenable. Even if inflation declines, soaring debt levels, deglobalization, and populist pressures will keep rates higher for the next decade than they were in the decade following the 2008 financial crisis.
thinks that policymakers and economists must reassess their beliefs in light of current market realities.
Since the 1990s, Western companies have invested a fortune in the Chinese economy, and tens of thousands of Chinese students have studied in US and European universities or worked in Western companies. None of this made China more democratic, and now it is heading toward an economic showdown with the US.
argue that the strategy of economic engagement has failed to mitigate the Chinese regime’s behavior.
MONTREAL – Much commentary about the American economy nowadays leaves the impression that economists should fix its problems. But Washington is teeming with smart economists, and the problems remain.
An economy is like a cloud: only when inside does one realize how diffuse it is – and that what matters are the particles of vapor that it comprises.
Likewise, an economy is an accumulation of transactions involving goods and services, mostly carried out by business enterprises. Their behaviors are what matters, and they cannot be adequately perceived from the distant perspective of economic models and statistics, but only on the ground – where an economy is built, where it breaks, and where it must be fixed.
To continue reading, register now.
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