MACROECONOMICS

Revisiting the Renminbi’s Manipulation

This study seeks to evaluate the economic and political landscape surrounding China’s contentious international currency valuation and its release from its peg to the USD in 2005. We find that, once the current domestic economic environment is accounted for alongside brewing future trade trends, there was a strong case for China to adopt a basket pegged currency valuation from a position of mutual domestic and international benefit.

US-China Technology War

“In the past, we tightened our belts, gritted our teeth and built the two bombs and a satellite.”; “In the next step of tackling technology, we must cast aside illusions and rely on ourselves.” – Xi Jinping, China Communist Party Secretary General.

EU and Japan Trade Deal

Japan and the European Union has been negotiating on this free trade deal since 2013, which the trade deal reached a final agreement on July 2018. This new deal is a bridge for opening free trade between Japan and the European Union. The value of import and export between EU and Japan is worth approximately one-third of the world’s GDP, and EPA has a direct effect on nearly 635 million people, the population of both Japan and the European Union. While the removal of tariff could be concerning for the government as the cost of this deal is the foregone international tax revenue, EPA is aiming at increasing the export and import but also promoting fair competitions for the companies between the two parties that ultimately help to improve their economy.

Will the Deficit Become A Problem For The Fed?

One of the main reasons for the economic downturn in 2018 is the tightening policy taken by the Federal Reserve. The Fed has been undergoing balance sheet normalization for a couple of years. Last year, the Fed has raised interest rates 4 times, raising it from 1.5% to 2.5%. The effects have been significant, given that most of the growth during the past decade is attributable to the low rate environment. Now the QE era is over, the turning point has come, and 2018 can be seen as the critical year that sets the tone for the coming years.

Universal Basic Income, the New Utopia

When he was still minister of the Economy, Emmanuel Macron stated, “I don’t believe in egalitarianism, rather I believe in equal opportunities; and the idea of basic income or basic capital for all goes in this direction and I’m interested in this.”

Is a Recession Coming to Us?

It has been almost ten years now since the United States first started recovering from the Great Recession. The theory of economic cycles commands a slowdown. Yet, the US economy keeps displaying an insolent health, closing 2018 at a 3% growth rate – well above most estimates of its longer-run trend. It contradicts the opinion that says the US economy should now have entered the downward part of the current cycle and is at the edge of the slowdown.

U.S. October Home Sales Questions Further U.S. GDP Growth

The NAR has requested a revaluation on the monetary policy. A cyclical downturn of housing price could be a potential threat to the U.S economy as it affects the householders’ confidence to consume and discourages the home builder to increase the supply of housing.

US Wage Growth Stagnation and the Midterm Election

As Americans enter the polls on Tuesday to examine Trump’s economic agenda, there is more at stake than judging Trump’s performance since 2017, this could be a turning point in changing an average American worker’s life.

The Low Global Inflation Rate Environment

The absence of inflation is a source of concern as it leaves nominal interest rates low and makes encounters with the zero lower bond. In the years following the financial crisis, global inflation has been stuck, more particularly in developed countries...

(Over?)regulation

Regulations: Necessity or brake on the business?