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How did US and EU trade policy withstand the Great Recession?

Chad P Bown's picture

Many feared a return of 1930s-style protectionism when recession hit the global economy. But many countries avoided this. In a blog post, co-authored with Meredith Crowley, I focus on US and EU trade policy and discuss how this policy withstood the ‘Great Recession.’ The following is an excerpt from the post which appeared on Vox.

“During the Great Recession, import protection increased around the world (Evenett, 2011). Popular policies included antidumping tariffs, safeguards, and other temporary trade barriers (Bown 2011a,b). Despite this, for high-income economies such as the US and EU, such trade barriers increased much less than initially feared. In this column, we ask how and why.

Estimating outward remittance flows from the US: over $100 billion a year?

Dilip Ratha's picture

The United States is perhaps the largest destination country for international migrants, and is by far the largest source country for international remittances (see our Factbook and a recent CBO report on remittances). The US Bureau of Economic Analysis reported that outward remittance flows from the US amounted to $51.6 billion in 2010 (see table 1). So far the BEA has published remittance data for the first three quarters of 2011. What could be the estimate for the fourth quarter 2011 and by implication the annual figure for 2011?

Migration and Trade Go Hand in Hand for Africa and the US

Sonia Plaza's picture

A recently introduced bipartisan legislation entitled, “The Increasing American Jobs through Greater Exports to Africa Act of 2012 “ will promote the increase of US exports to Africa. On March 22, U.S. Rep. Bobby L. Rush (D-IL) jointly with U.S. Rep. Chris Smith (R-NJ) presented a bill to improve the competitiveness of U.S. business in Africa, including African diaspora businesses. The bill also proposes to explore ways to utilize diaspora remittances to Africa for development purposes.

Some general information on US SEC registration of diaspora bonds

Dilip Ratha's picture

Of late I have been receiving a number of questions on legal requirements for selling retail diaspora bonds in the US. I am enclosing below some general information, but with the caveat that I am not a lawyer and I may be wrong. In the end reputable law firms (rather than economists like me) ought to be consulted.  

  • Retail diaspora bonds (even if they are a part of a larger institutional offering) should be registered under SEC Securities Act 33 Schedule B.
  • It can take 2-3 months to complete registration.

Video interview with Joe Stiglitz on Financial and Real Crises in the World Economy

Merrell Tuck-Primdahl's picture

According to Nobel-winning economist Joseph Stiglitz, creating jobs amidst today’s low-demand, high-debt environment is a tall order. It will require viable structural employment policies, unemployment insurance for laid off people, and -- in the case of the US – facing up to the inevitable shift out of the manufacturing sector into services.  Stiglitz, who delivered a DEC Lecture at the World Bank on September 26 on ‘The State of the Global Economy: An Agenda for Job Creation’, warned that far more is broken than the banking and financial systems in high income countries. He argues that a lack of aggregate demand is a huge problem that can only be fixed through smart public as well as private investment in education, infrastructure, and innovative technologies to protect the environment. He also described the current phenomenon whereby productivity in manufacturing is exceeding the rate of growth in demand in the sector, which means jobs on factory floors are being shed. In other words, technical change can induce large distributive consequences and lead to long term unemployment. Listen to my interview with him about what can be done to cure our current ills.

New Pragmatism versus Failing Neoliberalism

Grzegorz W. Kolodko's picture

The source of the current global economic crisis lies deeply in U.S.-style neoliberal capitalism, or contemporary laissez faire. It could not have been triggered in countries with a social market economy, but only in the conditions of the neoliberal Anglo-American model. The intense shock the world experienced could take place only as a result of the coincidence of numerous political, social and economic circumstances (as well as technological ones, since it would not have been possible without the Internet). The overlapping of these conditions in a specific way, which accumulated the crisis-related phenomena and processes, was possible only under a special combination of values, institutions and policies — are typical of U.S.-style neoliberalism.

China, the US and clean energy cooperation

Justin Yifu Lin's picture
 Photo: istockphoto.com

Presidents Hu and Obama created buzz earlier this week in Washington when they met on pressing bilateral issues, including US-China business and investment regulation, trade, currency imbalances and security concerns. US-China clean energy cooperation is an important part of that bilateral dialogue (see transcript of my intervention at a January 18 US-China Strategic Forum hosted by Brookings).

Why?
Cooperation between the two countries can yield big economic benefits.  The world is recovering from the worst economic crisis since the Great Depression. In this context, taking advantage of clean energy opportunities is crucial to fueling a sustained global recovery. 

Immigration a major election issue on both sides of the Atlantic

Sonia Plaza's picture

Immigration reforms are the focus in the UK  elections and in the USA Senate elections for this year. Both countries are yet to come to grips with the need to develop consistent policy frameworks in which immigrants can effectively and productively utilize their skills, knowledge, and previous work experience. Both countries are trying to identify measures on how to better deal with undocumented migrants and how to devise laws for low-skilled workers and for high-skilled workers.

In the UK, prime ministerial candidates have proposed the following approaches to undocumented migrants: 1) Gordon Brown’s proposal is to ban unskilled workers from outside Europe and cut the numbers of semi-skilled and skilled workers to enter into UK; 2) David Cameron proposes that “new countries that join the European Union should have transitional controls so not everyone can come at once. Regarding immigration from outside the European Union, there needs to be a cap”; and 3) Nick Clegg puts forward a proposal for "earned citizenship" for those who have lived illegally in Britain for at least 10 years, who speak English, who want to pay taxes and who want to play by the rules. (Boris Johnson, the Mayor of London, is promoting amnesty for undocumented workers.)


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