Friday 14 Dec 2018 | 16:39 | SYDNEY
What's happening on

Global Economy

The ebbs and flows of global economic conditions, trade and capital flows, thus have substantial implications for the Australian economy, and Australia’s major regional trading partners. Understanding the broad trends, and identifying emerging challenges and opportunities within the global economy, is central to the work of the International Economy Program at the Lowy Institute.

The highly integrated nature of the modern global economy became especially evident during the 2008 global financial crisis. What began as a localised problem within the residential asset-backed securities market in the United States, eventually brought down major financial firms across the Western world, and ultimately pushed the United States and Europe into a deep and prolonged recession. Although global economic growth has recovered somewhat since 2008, it is still much lower than pre-2008 trends, and the hangover from the crisis has manifested itself in the form of high unemployment levels throughout much of the developed and developing world, as well as an increasing level of inequality both within and between countries.

Understanding the economic rise of Asia, and particularly of the growing middle class within Asia, is also crucial to the broader work of the Lowy Institute. Political economy analysis on major players in the region, chiefly China, India and Indonesia, features heavily in the work of the East Asia Program and the International Security Program.  

Checking in on China's G20 presidency

China has its first big opportunity to demonstrate global economic leadership when it hosts this year’s G20 meetings. The G20 leaders’ summit will be held in Hangzhou on 4 and 5 September. So far, China looks to be taking the job seriously. When I was in Beijing in March, I was assured that

The Big Short: A reminder of the danger of groupthink

Steve Carrell and Ryan Gosling at The Big Short premiere.             Photo: Barcroft Media via Getty Images I’m looking forward to seeing The Big Short, which traces the stories of some who dared to doubt the US housing market before the global financial crisis. Friends and

IMF: the hard yards on reform are still to come

It finally happened. The US delivered on its long-standing promise to deliver the 2010 IMF quota and governance reforms, spreading a cascade of pre-Christmas cheer across the economic policymaking world. My colleague Mike Callaghan has neatly summarised the implications on US leadership. I want to

Why DFAT is wrong on the opportunity cost of FTAs

Last month the Department of Foreign Affairs and Trade (DFAT) secretary, Peter Varghese, had this to say about Australia’s participation in the global movement toward preferential free trade agreements (FTAs): To not participate would carry with it a significant potential opportunity cost, as

Douglass North and the Trans-Pacific Partnership

Now that the terms of the Trans-Pacific Partnership (TPP) have been agreed, the participant countries have to decide whether to ratify the deal. In assessing the benefits, where might we turn for guidance on the economics? First thoughts might go to David Ricardo, father of one of the few ideas

Decoding China's GOOD approach to the G20

With this year's summit season coming to an end, Turkey will officially hand over the G20 hosting baton to China on 1 December 2015. The Hangzhou Leaders' Summit has already been announced for 4 and 5 September 2016, slightly earlier than previous years to avoid clashing with the US presidential

Witness a global tipping point: The beginning of the end of coal

This is the first in a two part series by Fergus Green, climate policy consultant and researcher, London School of Economics and Political Science and Richard Denniss, chief economist, The Australia Institute. This post examines trends in coal demand. Part two will focus on proposals to regulate

Paris attacks cast a shadow over 2015 G20 Summit

By the Lowy Institute's G20 Fellow Tristram Sainsbury and Research Associate Hannah Wurf The 2015 G20 Leaders' Summit will be remembered for taking place in the aftermath of the brutal attacks in Paris, as leaders scrabbled to show unity and collective action. In coverage of the summit, every

TPP: Australia should bring in China and Indonesia

The negotiators have finally reached agreement on the Trans-Pacific Partnership (TPP). The US Congress might yet be a stumbling block, but the many US interest groups which stand to benefit will influence that outcome. Other TPP countries have to get legislative approval too. Whatever the

Meeting fatigue? G20 needs to guard its brand

The Turkish presidency of the G20 is scheduled to host an astounding 86 meetings in 2015. That's an average of more than one and a half per week and it's a lot more than the then-record 60-odd meetings held in 2014. This year's official tally also underestimates the total number

Video: Tyler Cowen on the rise and fall of China's economy

China released new GDP figures this week to widespread scepticism. Stephen Grenville's next column will look at the issue of China's GDP, but meanwhile, here's a nicely produced video from economist Tyler Cowen, who we know from the Marginal Revolution blog and his occasional NY Times columns. It's

Digital diplomacy is not the same as digital outreach

Recently Jonathan McClory from UK consultancy Portland Communications, along with Facebook's government outreach manager Katie Harbath, skilfully entered the five-year long debate on the Australian Government's digital diplomacy capabilities. It's a welcome move – the more individuals and

China lays down the cyber law: Play in our space, play by our rules

By Cheng Lim and Jack Maher. Cheng Lim leads the cyber security initiative at King & Wood Mallesons. Last year Jack Maher completed a Master of Chinese Law at Tsinghua University while working in the firm's Bejing office. China's internet czar Lu Wei, President Xi Jinping and Facebook Chief

Pages