BLOG MASH-UP OF THE WEEK

Everyday the blogosphere offers an enormous amount of in-depth analysis on any imaginable topic. The world of macroeconomics and economic forecasting is no exception. To keep themselves updated on the latest information, our in-house team of economists scan the world wide web and gather what they consider the most interesting, appealing, informative or just curious blog posts from experts in the field of global economics. Here’s the list of the Top 4 posts from this week. Check it out!

  1. Russia&India Report – Rakesh Krishnan Simha: ‘Waking up the green giants

    The world will change dramatically in the decades to come: the economic and political power will shift from the West to the East, and the economy will transition from a high to a low carbon growth model. According to Rakesh Krishnan Simha, the BRICS countries are in a better position to go green and the change is already happening. While China has become the world’s largest investor in renewable energy, India has recorded the fastest growth rate. Moreover, the investment requirements in green energy are massive and the time horizon is long, which makes it more difficult for the Western indebted countries to lead this race. In addition, due to the strong competition Chinese firms have expelled European firms from the sector, thus reaching a dominant position.  ” –  Ricard Torné

  2.  Mish’s Global Economic Trend Analysis – Mike Shedlock: ‘How About Them Apples?’

    Mike Shedlock offers a critical analysis of the escalating economic war between Russia and the West. On 30 July, Russia introduced a ban on almost all fruit and vegetables imported from Poland. While Russia cited pesticide issues, Shedlock has no doubt that this is retaliation after the European Union increased sanctions against Russia. Moreover, he thinks that it is ridiculous that EU officials expressed surprised over Russia’s move. It will be impossible for Poland to make up for lost exports to Russia, despite a clever social media campaign to increase domestic demand. Shedlock’s conclusion is that, “sanctions are not  very bright. No one wins in a trade war. And Europe is about to find out in a big way.” – Carl Kelly

  3.  Stumbling and Mumbling – Chris Dillow : ‘Poverty: Structural or Individual?’

    Is poverty structural or individual? Chris Dillow provides different arguments and empirical evidence that support both ideas and points out that no conclusive evidence has been found to answer this question. He says that the “poverty is individual” argument is supported by Say’s law according to which an increase in human capital would lead to the creation of better jobs. Conversely, the “poverty is structural” position is supported by the idea that inequality, deskilling and unemployment are systemic features of capitalism which induce relative poverty.” – Teresa Kersting

  4. Vox LACEA – Magda Kandil: ‘What can be done to lower unemployment rates in the Caribbean?’

    External shocks and high indebtedness in the Caribbean countries have hampered prospects for growth, increasing unemployment. According to Magda Kandil, growth in the Caribbean has stagnated in the last two decades, except among those that are commodity exporters. The last episodes of rapid growth that the region experienced were fueled by factors that are not attributed to domestic policies and structural reforms. Instead, growth has fluctuated in response to commodity prices, tourism receipts, banana production, and external grants. Moreover, job creation has been limited during economic booms, reflecting deep-rooted structural impediments that have left unemployment at high levels over time. –  Ricardo Aceves

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