# data[].attributes.headline
Post #10 (November 29, 2017) -- Reworking Banking Procedures

# data[].attributes.subject
Post #10 (November 29, 2017) -- Reworking Banking Procedures

# data[].attributes.body
https://www.economist.com/news/finance-and-economics/21731448-new-accounting-rule-credit-losses-about-kick-timelier-provisions-may
Leaders of the G20 are reacting to the trauma of the 2008 recession, by implementing a new accounting standard: IFRS 9. 120 countries (not including the US) will implement this new standard in the first quarter of 2018. Unfortunately, the only way to see if this new measure will work is to wait it out.

This article reminds me of the discussion we had on financialization. Over confidence from lying about bond pool values caused the housing market to crash as well as other markets. Now everyone is fearful and reworking policies to ensure that another catastrophic bust doesn’t happen.

# data[].attributes.headline
Post #9 (November 29, 2017) -- WTO and Fair Trade

# data[].attributes.subject
Post #9 (November 29, 2017) -- WTO and Fair Trade

# data[].attributes.body
https://www.economist.com/news/briefing/21721935-idea-reciprocity-animates-white-houses-view-trade-what-donald-trump-means-fair
President Trump wants to renegotiate World Trade Organization agreements. Tariffs are based on a “most-favored nation” policy where one country agrees on a tariff with another country and it also apply to other countries. The Trump Administration believes this deal is unfair for America because it cannot raise tariffs against those who impose high tariff on it.

This article reminds me of our discussion about the Brenton Woods Conference where the WTO came about. As we discussed, the countries wanted to secure the world’s macroeconomic stability. Breaking rules of the agreement can have a ripple effect and ultimately destroy WTO.

# data[].attributes.headline
Post #8 (November 29, 2017) -- Can Buying Local Hurt?

# data[].attributes.subject
Post #8 (November 29, 2017) -- Can Buying Local Hurt?

# data[].attributes.body
https://www.economist.com/news/finance-and-economics/21731633-local-content-requirements-make-appealing-slogans-bad-policies-buying-local
Buying locally is generally seen as the correct thing to do and that it will allow countries to thrive and create more jobs. Policies that promote protectionism have been reviewed by groups like the UN and have found no evidence that it stimulates innovation. Protectionism is feared to cause retaliation from other countries and exclude outsiders/competition.

This reminds me of our discussion about developmental states that often try to protect and build domestic businesses to eventually open up to the world market. Too much protectionism can hurt a country by costing the state more to source locally or diminish innovation.

# data[].attributes.headline
Post #7 (November 29, 2017) -- Millennials Left Behind 

# data[].attributes.subject
Post #7 (November 29, 2017) -- Millennials Left Behind 

# data[].attributes.body
https://www.economist.com/news/finance-and-economics/21731434-more-half-global-wealth-owned-top-1-rich-get-richer-and
Financial markets rose the fastest pace since 2012 to 6.4%. The gap between the rich and those that are not rich has also expanded, leaving the top 1% to own more than half of the world’s wealth. Millennials are now finding it harder to own homes and buy assets from baby boomers trying to retire.

As we discussed financialization in class, there was a shift from production to finance instruments. Financialization causes income inequality to be prominent. Millennials are now like undeveloped countries where they have catching up to do. Getting rich or making money is becoming harder for them.

# data[].attributes.headline
Post #6 (November 28, 2017) -- Indian Government Pays Out Banks 

# data[].attributes.subject
Post #6 (November 28, 2017) -- Indian Government Pays Out Banks 

# data[].attributes.body
https://www.economist.com/news/finance-and-economics/21730673-lenders-will-finance-their-own-bail-out-apparently-india-recapitalises-its
Indian banks stayed afloat during the economic recession but then went on a lending spree; many of which could be paid back. Luckily, the Indian government has a plan to bail them out. The banks will lend the government the amount of money owed and then the government will reinvest it as bank shares.

In recent years, India has slowly become part of the global economy contrasting our discussion about late industrialization and their incapability to have an embedded autonomy. The state has actively taken charge of stabilizing the economy by bailing out banks back in 1991 this same way.

# data[].attributes.headline
Post #5 (October 11, 2017) -- China's New Monetary Policy 

# data[].attributes.subject
Post #5 (October 11, 2017) -- China's New Monetary Policy 

# data[].attributes.body
https://www.economist.com/news/finance-and-economics/21726723-little-imperial-inspiration-china-shifts-more-market-based
China’s central bank used to manage economic policies based on their quantity of money and reliance on foreign cash inflow. In 2015, it began to establish a new monetary policy. The central bank initiated the restructure by establishing a lower and upper-bound interest rate for banks who have and need money, respectively.

When we discussed globalization as development, development was redefined as participation in the global market. The global economy became a unit of development. China’s central bank is actively restructuring their economic policy in an effort to secure their capital account and continue their participation in the global market.

# data[].attributes.headline
Post #4 (October 11, 2017) -- Extreme Protectionism Hurts 

# data[].attributes.subject
Post #4 (October 11, 2017) -- Extreme Protectionism Hurts 

# data[].attributes.body
https://www.economist.com/news/finance-and-economics/21730034-jones-act-hurts-american-consumers-and-destroyed-countrys-shipping
After WWI, the Jones Act of 1920 was put into effect to protect producers of American cargo ships. Trade between domestic ports must be by American flagged and built ships. This extreme form of protectionism has hurt consumers through inflated prices. They have been finding different ways, like airplanes, to transport what they need.

This article reminds me of Late Industrialization and Gerschenkron’s idea that states should protect local industries. While most economic ideas aren’t directed toward the US, protectionism of American cargo ships has hurt the industry. Other countries are taking notice and loosening rules to protect their fleets.

# data[].attributes.headline
Post #3 (October 11, 2017) -- Keynesian Economics and Brazil 

# data[].attributes.subject
Post #3 (October 11, 2017) -- Keynesian Economics and Brazil 

# data[].attributes.body
https://www.economist.com/news/americas/21726689-there-still-plenty-could-go-wrong-investors-seem-confident-economic-recovery
Brazil seems to be recovering from a two-year recession. Prices of commodities are high and GDP is expected to grow 0.3% this year. Interest rates are also falling after being kept high to curb inflation. Potential candidates for upcoming elections have different plans for how to run the economy, which don’t benefit the market.

This article reminds of Keynesian economics. Brazil has taken an ‘activist state’ and contractionary role by controlling interest rates. Potential candidates for the presidency seem to mirror Keynesian economics to different extremes. One supports large amounts of public spending, while the other supports major government intervention.

# data[].attributes.headline
Post #2 (October 11, 2017) -- Cuba's Reconstruction

# data[].attributes.subject
Post #2 (October 11, 2017) -- Cuba's Reconstruction

# data[].attributes.body
https://www.economist.com/news/americas/21729803-communist-regime-can-no-longer-rely-generosity-its-allies-it-has-no-idea-what
Budget deficit in Cuba is expected to reach 12% of GDP this year, leaving little money to spend on reconstruction after Hurricane Irma hit. In effort to increase their cash inflow, the government has been open to foreign investment, but their paranoia of political overrule from countries makes it difficult for investors.

This article reminds me of the discussions we have on how countries or governments manipulate their economy in attempt to expand them. Cuba is strategizing by welcoming foreign investment. It also reminds me of the unit of FDI and our discussion of short- and long-term consequences of FDI.

# data[].attributes.headline
Post #1 (October 11, 2017) -- Africa’s Economic Development

# data[].attributes.subject
Post #1 (October 11, 2017) -- Africa’s Economic Development

# data[].attributes.body
https://www.economist.com/news/finance-and-economics/21726697-structural-transformation-its-economies-not-following-precedents-why
GDPs in Africa have been growing, but mostly from informal service sectors that don’t improve people’s lives. There was general idea throughout the article that a structural change- moving from agriculture to service to manufacturing jobs- is needed, but Africa is competing with low-wage workers from other countries and robots.

This article relates to the class because it talked about some governments, like that of Ethiopia, are taking a mix of neoclassical and neoliberal approaches by encouraging foreign direct investment into their country to offer more jobs and money into their country, while protecting local businesses.