Econintersect: Here are some of the headlines we found to help you start your day. For more headlines see our afternoon feature for GEI members, What We Read Today, which has many more headlines and a number of article discussions to keep you abreast of what we have found interesting.
Japan's Abe: G7 sees need to boost demand, address supply constraints (Reuters) G7 leaders agree on the need to take measures to boost global demand and eliminate factors that hamper productivity amid lingering risks to the world economy, Japanese Prime Minister Shinzo Abe said on Wednesday. Japan will host a summit of the Group of Seven (G7) advanced economies in western Japan next week, where policy steps to address subdued global growth will be high on the agenda.
Migrant crisis: Majority would welcome refugees - survey (BBC News) A majority of people (80%) would accept refugees in their country, with many even ready to take them into their own home, a global survey suggests. The Refugees Index, research commissioned by Amnesty International, indicates that China, Germany and the UK are the most welcoming nations. It also suggests that the most negative attitudes towards refugees are in Russia, Indonesia and Thailand. The survey questioned 27,000 people in 27 nations.
The new normal that never was (Voxeu.org) This is a perceptive critique of the global economy since the Great Financial Crisis. Here is the intro:
The 'New Normal' never was, isn't, and should be replaced by the 'New Abnormal'. In the wake of the Global Crisis, the idea that the global economy had entered a low-growth equilibrium gained a curious acceptance. In reality, the situation is far from 'normal', and the attempt to characterize it as such has been deceptive, disingenuous, and dangerous.
Instead, economists, policymakers, and investors would be better advised to think of the world economy as being in a period of profound disequilibrium, as the aftershocks of the Crisis collide with and complicate a range of structural changes. Ever since the onset of the Crisis in 2007-08, the global economy has been repeatedly flirting with a descent into an even more damaging deflationary depression. Policymakers have averted this only by a combination of luck, judgment, and experimentation.
In new research, we argue that whites began resorting themselves away from black arrivals in the first decades of the 20th century, decades before the opening of the suburbs (Shertzer and Walsh 2016). Our analysis isolates the channel of white flight from institutional barriers that constrained where blacks could live in cities. We argue that accelerating white population departures in response to black arrivals at the neighborhood level can explain up to 34% of the increase in segregation over the 1910s and 50% over the 1920s. Importantly, our analysis suggests that, while discriminatory institutions faced by blacks were clearly important, segregation may have emerged in US cities even in their absence simply as a consequence of market choices made by white families.
Here's the Thing So Many Americans Can't Grasp About Bernie Sanders (Observer) A matey from Oz describes how the rest of the world sees the man Americans perceive as "the reincarnation of Karl Marx" who wants to "turn the U.S. into a communist state". And that he is "so far left of center that he's basically off the chart". This author says that the countries in the world that far outrank the U.S. in happiness metrics see Sanders as a slightly left of center politician.
Japan's GDP growth surprises with 1.7% gain (Market Watch) Japan's economy grew much more than expected in the first three months of 2016 due to stronger than forecast consumer and government spending and demand for Japanese goods overseas, possibly easing pressure on Prime Minister Shinzo Abe's government to launch more fiscal stimulus to help spur growth. Gross domestic product expanded an annualized 1.7% on quarter in the January-March period, according to government data released Wednesday. That was larger than a 0.3% increase forecast by economists surveyed by The Wall Street Journal, and came after a revised 1.7% decline in the last quarter of 2015. So, for the last two quarters Japan cumulative GDP growth was nearly flat.
Earlier imbalances in China's economy are making a comeback (Business Insider) China appears to be pumping the housing market to try to offset weakness in other sectors. Chinese new home prices continued to push higher in April, logging the fastest annual increase in two years. According to China's National Bureau of Statistics (NBS), new home prices rose by 6.2% from April 2015, an acceleration on the 4.9% pace seen in the 12 months to March.
Venezuela security forces block anti-Maduro protesters (Reuters) Venezuelan security forces fired tear gas at protesters in Caracas on Wednesday amid nationwide rallies demanding a recall referendum to end President Nicolas Maduro's socialist rule. In the third day of opposition rallies in the past week, several thousand protesters descended on downtown Caracas for a march to the national election board, witnesses said. But National Guard soldiers and police cordoned off the square where they planned to meet, so protesters instead milled in nearby streets waving flags, chanting "the government will fall" and pressing up against lines. Authorities shot tear gas to disperse them several times, sending hundreds of panicked people running down streets. A few demonstrators were arrested and one young man was carried off unconscious, according to Reuters witnesses.
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