On 20 August, the Greek government is scheduled to exit its IMF bailout programme, ending a series of three programmes that have run continuously since 2010. The Greek programme was the largest, most high-profile and most politically controversial in a series of post-global financial crisis bailouts of EU member states organized by the so-called ‘troika’ consisting of the European Commission, the European Central Bank and the IMF.
Politically, the course of action taken by the troika has been seen as controversial at best. The Greek economy has now suffered the longest recession of any advanced capitalist economy, overtaking the slump suffered by the US during the Great Depression in 1929.… Seguir leyendo »
On 1 June, the Trump administration announced that exemptions on steel and aluminium tariffs that for the EU, Canada and Mexico would not be renewed. That these tariffs have gone into effect is the latest of many indications that the US government has moved away from supporting the free-trading system, and is instead seeking to attempt to maximize its advantage as a large, diversified economy.
This stance creates a much more dangerous trade landscape. It also rewards larger countries and creates particularly hard choices for the United Kingdom.
A world with no rules
These tariffs, whether by coincidence or design, continue President Trump’s ongoing efforts to undermine the legitimacy of the World Trade Organization (WTO) dispute settlement process.… Seguir leyendo »
This year marks the 10th anniversary of the 2008 global financial crisis, the most significant financial and economic upheaval since the Great Depression. Recently, it has become tempting to believe that – following expected growth of over 2% in the eurozone for 2017 and a return to increasing interest rates by the Federal Reserve and Bank of England – the global economy has finally returned to normal.
However, this is to ignore the profound and permanent ways in which the global economy has changed as a result of the crisis itself and the policy responses to it, and to underplay the importance of these changes for global economic policy going forward.… Seguir leyendo »