It’s official. The US is now a rogue nation. It has started a trade war with the whole world. There is no, repeat no, trade war between countries going on in the world. It is between the US and all the other countries it trades with, including its closest allies since the Second World War. …
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 …