International trade is under strain and backward-looking trade negotiation strategies play a role in building up this pressure. Drawing on the World Input-Output Database, Andrea Andrenelli adopts a global Leontief approach and develops three indices to make trade policymaking fit for the era of global value chains.
China and the IMF – Convergence or Conflict?
July 24, 2017Economic Policy
China and the IMF have had a rocky relationship ever since the Fund’s founding in 1945. Despite the IMF’s recent efforts to better reflect China’s growing economic power within its organizational structure, the future of the two entities remains uncertain. This can be explained by conflicting interests on fiscal policy, the ambiguous behavior of the Chinese economic regime, and the failure of the IMF to fully adapt to the shifting weights of the world economy.
The Innovative State
March 25, 2017Economic Policy
Innovation is often limited to the realms of the private sector, characterized by ruthless competition amongst high-tech firms operating outside the reaches of the state. However, rethinking the role of governments in fostering learning and innovation can lead to both transformative and inclusive economic growth.
Avoiding a Persian Flavor of Dutch Disease
January 25, 2017Economic Policy
When sanctions on Iran were lifted, the country moved toward market liberalization. Now pressure on the Iranian Rial is undermining non-oil export sectors as they lose competitiveness both nationally and internationally. If Iran’s economy is to flourish, policy makers will need to embrace a new mix of fiscal, structural and monetary policies.