In a historic breakthrough for the multilateral system, the International Monetary Fund (IMF) approved the global allocation of $650 billion in Special Drawing Rights (SDRs)—the international reserve asset issued by the IMF—to support liquidity and foster the resilience of the global economy in the wake of the COVID-19 pandemic. While unprecedented in its scope, this […]
By Jake Werner In both Beijing and Washington, the recent history of mutual gain in the US–China relationship is increasingly seen as an exercise in self-deceit. Where shared benefits were once recognized, elites on both sides now perceive the national interests and even the national character of the other to be incompatible with their own. […]
In both the United States and China, opinion has moved from a cautious embrace of the other to a conviction that earlier collaboration was naïve and that a “clear-eyed” analysis discloses the other to be possessed of a fundamentally hostile essence. In Washington, policymakers increasingly view Chinese economic statecraft as an attack on the ideals […]
By Cecilia Han Springer Although it is a massive infrastructure and connectivity program at the global scale, China’s Belt and Road Initiative does not reach all host countries equally. Regional patterns in concentration and type of projects mean that these host countries will experience the benefits – and impacts – of China’s outward investment differently. […]
In the lead-up to the first Belt and Road forum in May 2017, China published three official documents emphasizing that its investment projects will be used to promote the Paris Climate Agreement and 2030 Sustainable Development Goals and are motivated by the need to “share the ecological civilization philosophy and achieve sustainable development.” Despite what […]
Climate change and policy responses to address climate change pose significant risks to financial and fiscal stability, poverty and inequality, and the long-run growth prospects of the world economy. In the midst of a global pandemic, 2021 has already been marked by a slew of extreme weather events, wreaking havoc on countries and economies across […]
Macroeconomic policy has long been dominated by the use of the dynamic, stochastic general equilibrium (DSGE) and computable general equilibrium (CGE) models, used for predicting economic outcomes. Despite this popularity, a systematic and realistic assessment of DSGE and CGE models was missing, until economist Servaas Storm recently analyzed the shortcomings of the models and their […]
By Jeronim Capaldo Is the US economy running too hot, such that more spending is bound to drive up inflation with no benefit for growth and employment? Many experts think so. Would more trade be beneficial for economic growth and employment? On this, too, many agree. In answering these and other macroeconomic questions, multiple sources […]
In his remarks at the 76th United Nations General Assembly, Chinese leader Xi Jinping announced China “will not build new coal-fired power projects abroad,” a major step in reducing carbon emissions during a critical decade. What does this mean in terms of global climate and development goals? How will China’s announcement affect its energy finance to […]
The COVID-19 pandemic has led to unprecedented global economic and human crisis, with many developing countries facing serious challenges in continuing to service ballooning levels of sovereign debt. Half of all low-income countries are either already in debt distress or at high risk. Against this backdrop, creditors and the international community have been contemplating various […]