Everyday the blogosphere offers an enormous amount of in-depth analysis on any imaginable topic. The world ofmacroeconomics 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!
- The Adam Smith Institute Blog – Sam Bowman: Would being more like Qatar be a good way of fighting poverty?
Sam Bowman considers the issue of whether massive guest worker schemes such as those in several Gulf States are an effective way to combat poverty. These migration policies may be effective in providing immigrants from poor countries with work and income opportunities, and may not bring some of the problems associated with full immigration, but the author argues that, “the system feels almost like slavery.”. – Carl Kelly
- VOX – Joshua Aizenman: The Global Trade Disorder: New GTA data
Simon J. Evenett discusses the level of protectionism in advanced economies. He argues that the retreat to protectionism since the global financial crisis has been more severe than previously imagined. Peak protectionism was believed to have passed in 2009. The author of this article states that with the latest Global Trade Alert (GTA) report, data show that since 2012 protectionist measures by G20 countries have exceeded the 2009 peak. –Cecilia Simkievich
- Conversable economist – Timothy Taylor: The Two New Tools of Monetary Policy
Timothy Taylor examines the new tools of monetary policy and why the old tools no longer work. He argues that the old monetary policy tools of the past — changing the reserve requirement, discount rate or federal funds interest rate — all required banks to be close to the required level of reserves. However, after the Fed’s quantitative easing program, banks were holding very large quantities of cash reserves, larger than required. This caused a shift in monetary policy tools to take place. Taylor continues to examine the new monetary tools of the future and argues that going forward, the main tool will be the amount of interest that the Fed pays on bank reserves. – Angela Bouzanis