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. Economics Help – Tejvan Pettinger: Impact of Falling Oil Prices

    Oil prices plummeted in recent months due to ample supply in international markets and weaker global demand. This situation, however, has left winners and losers. Oil consumers have seen their cost of living decline as inflationary pressures ease. Those countries with a large current account deficit would benefit the most from this situation. Conversely, in Europe, despite being a net oil importer, lower oil prices would exacerbate deflationary pressures. On the other hand, oil-export driven economies would experience additional strain in their budget due to lower oil revenues. That said, Tejvan Pettinger points out that Saudi Arabia is not cutting production, which could lead to higher prices, as it wants not to lose market share in favour of other energy sources, such as fracking. – Ricard Torné

  2. Investment Adventures in Emerging Markets – Mark Mobius: Three Words for Brazil

    Mark Mobius analyzes the post-electoral economic landscape in Brazil. Financial markets and investors responded negatively to president Dilma Rouseff’s reelection. However, Rouseff has signalled that she is prepared to move the country foward in a new direction. Mobius is confident that Brazil can live up to its potential if important reforms are passed. – Carl Kelly

  3. Mainly Macro – Simon Wren-Lewis: Germany and Pre-recession Cost Cutting

    Simon Wren-Lewis argues that competitiveness imbalances within the Eurozone largely account for its current economic problems. Particularly, he points out that Germany has an undervalued real exchange rate, or in other words, compared to the other EU members it is too competitive, holding back their economic growth. In his view, Germany’s higher competitiveness was mainly driven by low nominal wage inflation since the 2003 recession and a period with above target inflation within Germany would be necessary to rebalance competitiveness among the Euro area.  – Teresa Kersting

  4. Ecomonitor – Dan Steinbock: The Struggle for Free Trade in Asia Pacific

    Dan Steinbock discusses the upcoming Asia-Pacific Economic Cooperation (APEC) forum and what a free trade plan could mean for the members. Steinbock analyzes the history of APEC and the stumbling blocks the organization faces in implementing a free trade plan. He discusses the pros and cons of two different agreements that have been proposed, the FTAAP (includes China) and the TTP (excludes China) and ultimately argues that a free trade zone should include both China and the United States. – Angela Bouzanis

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