Country Income Shares in PPP

by Jayati Ghosh, Triplecrisis.com The UNDP’s latest Human Development Report 2013 (entitled “The rise of the South”) has one particularly striking chart that it uses to make the point about the recent growing economic significance of some “emerging” nations. In Chapter 1, Chart 3 suggests that just three countries (Brazil, China and India) together account …

Out of the Garden of Europe and into the World Economy

by Macrotides Monetary policy is a bit like watering a garden. Its nourishment is intended to foster growth and jobs, and when in full bloom, a rising standard of living for the majority of people in society. A functioning spigot (central bank) and nozzle at the end of the hose (banking system) are needed for …

Is Decoupling Possible in a Global Economy?

by Macrotides An improvement in U.S. economic data in the fourth quarter has convinced many investment strategists that the U.S. will continue to grow 2% to 3% in 2012, absent a Lehman Brothers type of crisis in Europe.  After all, U.S. GDP growth likely exceeded 3% in the fourth quarter, while Europe was slipping into …

September 2011 Global Macro Picture

The tightening of monetary policy over the last year by China, India, and Brazil will cause their domestic economies to slow. Coupled with the slowdown in developed countries, global growth is set to slow for the rest of 2011 and early 2012. The European debt crisis is going to get worse, and it also will have a negative effect on global growth.