There’s so much wrong with the recent trade agreement between the US and the UK that it’s difficult to know where to start. First, it’s not a trade deal as it does not reduce tariffs or set the terms for trade between the two countries; instead, it is an agreement about a potential deal. But …
Trump, Tariffs and the new world order
Economists generally agree on few economic theories, but the negative impact of tariffs is one of them. The theory advocating for free trade without tariffs or barriers between countries was first articulated by Adam Smith in 1776 in “The Wealth of Nations,” showing that even if a country has an absolute advantage in producing goods, …
UK can cut interest rates a lot
In recent months, official interest rates have been cut worldwide as inflation has fallen sharply from the peak of over 9% following the end of the Pandemic and Russia’s invasion of Ukraine, which drove up global food and energy prices, see chart 1. Global price inflation has fallen to the rates before the Pandemic and …