Lessons of E-Commerce Explosion in China

Lessons of E-Commerce Explosion in China

The second World Internet Conference (WIC), also known as the Wuzhen Summit, will take place Dec 16 -18, in Wuzhen, Zhejiang. Chinese President Xi Jinping will attend the conference and address the opening ceremony. It takes place amid dramatic expansion of Chinese e-commerce, thanks to great market potential and government’s supportive policies. In early spring, […]

Eurozone: Competitiveness Indicators and the Failure of Internal Devaluation

Measures of ‘international competitiveness’, for example those based on broad wage, unit labour cost and price parameters are approximations only[1].   Some are more relevant than others. The purpose of this short article is to review the progress of external account adjustment and internal devaluation in Eurozone countries Unit Labour Cost Comparison Unit labour cost-based measures […]

All of the Euro Area Usual Competitiveness Suspects in One Chart…But with a Twist

The European Commission’s Economic and Financial Affairs initiated the Macroeconomic Imbalance Procedure (MIP) Scoreboard. MIB will be used to identify emerging or persistent macroeconomic imbalances in a country. In their inaugural release, EU found 12 countries in need of further review for potential imbalances (program countries are exempted from this review process). The accompanying database […]

Does Latvia Give Us Any Clues?

Short answer: yes, as long as global trade growth is negligible. Over the weekend I came across a December CEPR paper about the Latvian economy. Authors Mark Weisbrot and Rebecca Ray highlight the Latvian experience with internal devaluation, which may prove to be a case study for the current Eurozone model of internal devaluation by the […]

EA Infernal Devaluation Progressing

The EU answer to rebalancing portfolio and trade flows within the Euro area (EA) without currency devaluation is recession and deflation. They call this ‘internal devaluation’ – shifting relative prices by reducing domestic demand in the debtor countries, thereby shifting the terms of trade. Marshall Auerback calls it ‘infernal devaluation’. Marshall’s right. Today we got more […]