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. Economonitor  – Ed Dolan: “The economic future (if any) of “Novorossiya”

    In his blog post, Ed Dolan examines three possible outcomes for the conflict in Eastern Ukraine and the economic prospects for the region. Focusing largely on the possibility of a frozen conflict–which he believes is most likely–Dolan outlines the economic impact for the seperatist regions, as well as, for Russia and Ukraine. Dolan points out that even prior to the start of the conflict Ukrainian steel producers, a key component of Eastern Ukraine’s economy, were very inefficient and had not adopted modern technologies. In addition, they relied heavily on subsidized energy prices to remain competitive. Now, after extensive war damage, the sector is in desperate need of reconstruction and modernization but with both Russia and Ukraine’s economies weakened from the conflict, it is unlikely that either will want to foot the bill. In conclusion, Dolan argues that it seems as if Russia has won the geopolitical phase of the conflict, however, whether this will result in an economic victory is less certain. – Angela Bouzanis

  2. The Big Picture – Paul Kasriel: ‘A Tale of Two Economies — It Was the Better of Times, It Was the Worst of Times’

    Paul Kasriel argues that the Federal Reserve’s engagement in quantitative easing (QE) and the European Central Bank’s (ECB) lack of QE caused the difference in the performance of the U.S. economy compared to the Eurozone economy since the recent financial crisis. To make the case, he presents data on domestic demand and the behavior of credit created by the central banks and depository institutions in each economy in recent years. According to Kasriel, QE in the United States helped to increase the ability of banks to supply demanded credit, which was at risk due to capital constraints and increased regulatory requirements. Teresa Kersting

  3. Mainly Macro – Simon Wren-Lewis: ‘UK immigration and social attitudes’

    In one of his latest posts, Simon Wren-Lewis talks about the perception of immigration among the British society. Simon points out that immigration was not an issue until the end of the 1990s. Later on, its importance rose markedly, and it has been a key issue since 2003. However, looking at the data, the concern about immigration involves class. Those with low incomes tend to want a reduction in immigration because of the perceived impact on the labor market. On the other hand, those with higher income are more concerned about the impact on public services. In addition, there is a clear correlation between education and the perception of immigration. People with university degrees tend to think that immigrants have benefited the economy, while the rest believe the contrary. The general idea is that a large majority of the UK society have always favored tighter controls on immigration. Interestingly, even the Scots want less immigration. – Dirina Mançellari

  4. Uneasy Money – David Glasner: ‘Currency Wars: The Next Generation

    From a Bloomberg news report, David Glasner writes that currency wars is spreading fast. He notes what’s written in Bloomberg: “Currency wars are back, though this time the goal is to steal inflation, not growth. – Brazil Finance Minister Guido Mantega popularized the term ‘currency war’ in 2010 to describe policies employed at the time by major central banks to boost the competitiveness of their economies through weaker currencies. Now, many see lower exchange rates as a way to avoid crippling deflation.” Glasner says that “currency war” in the sense used by Mantega is a currency manipulation of exchange rate protection, which involves various and simultaneous tools used by Central Banks. So the idea that quantitative easing had anything to do with “currency war” in this sense was a nonsensical notion based on a complete failure to understand the difference between a nominal and a real exchange rate. Ricardo Aceves

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