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, …
Another turbulent year looms – but so do opportunities
Last year was turbulent for the world economy, and this one may be no different. The Russian invasion of Ukraine in 2022 had its full effect in 2023, reducing real incomes by pushing inflation up, particularly for food and energy. In addition, interest rate increases, put in place to fight the sharp rise in inflation, …
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Why the UK current account deficit matters
What do Russian oligarchs, the selling of UK companies to foreign investors and the slide in the pound all have in common? The answer is they all help to fund the UK’s growing current account deficit. And it is indeed widening. In Q1 2022, the UK’s trade deficit was £33.4bn, and the current account deficit …
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