In what is shaping up to be the next big standoff between the world’s two economic superpowers, China and the United States are laying the groundwork for what is likely to be a bitter fight. This time the issue is…
This video explores the role of the U.S. dollar in the international monetarysystem and the prospects for its future role in the global economy. Since 1944, the U.S.dollar has been the most important currency in the world, the currency of…
Run Time: 2:21 Abstract: Negotiating the terms of the new arrangement between the United Kingdom and the European Union following the 2016 UK vote to leave the bloc was a complex situation from the start. Now though, thanks to the…
In Finland, the heat is on to save the 2019/2020 ski season. Following the closure of the ski resort in Levi as part of the shutdown ordered by the Finnish government in response to the COVID-19 pandemic, the resort decided to take action. Rather than allowing its most precious resource to melt, it decided to save the snow. With the goal of extending what had been an exceptional season because of significant snowfall, workers at Levi literally piled up the snow and covered it with specially designed blankets to insulate it. The plan is that instead of waiting for mother nature to dictate the start date of the 2020/2021 season, Levi will reopen its resort in October using its saved snow. While it is possible that the area will have received some snow by that time, it is typically early autumn. Workers are optimistic that by saving their most important resource, they will be able to recoup some of the losses incurred when the current season abruptly ended in March.
The fallout from the global COVID-19 pandemic continued this week as oil prices plunged below zero. In a highly unusual situation, producers were quite literally paying buyers to take excess supplies. The crisis came as global demand for oil continued to be at record lows as government mandated shutdowns kept businesses closed and consumers at home in nearly every country in the world. Despite a recent agreement among OPEC + producers to reduce production by 10 percent, the glut of oil on the market was significant. With storage options all but exhausted and no easy way to simply stop production, it is unclear just what will happen next. Prices will almost certainly stay low though, even as the global economy begins to reopen, at least until existing excess supplies work their way through the system. Just how long it will take for demand to return to pre-COVID-19 levels is uncertain as signs that the world may be in for a prolonged recessionary period continue to grow.
This video explores the standoff between Saudi Arabia and Russia over oil production. The clash between the two countries reached new levels at a recent meeting in Vienna where OPEC+ countries attempted to hammer out a solution to the current glut of oil on the market that is driving prices to long time lows. While it is clear that global demand for oil is at one of its lowest points ever thanks to the closures of most economies in respond to the COVID-19 pandemic, and that production of oil must be slowed, Russia is unwilling to do so, and Saudi Arabia has refused to reduce its production unless Russia does as well. While further negotiations have produced some acknowledgement that all oil producers will need to cut production at least until the global economy is reopened, just what those reductions will look like is still unknown, suggesting that uncertainty will continue to roil oil markets and for now prices are likely to remain low.
This video explores the bleak situation facing the county of Lebanon. Decades of corruption and fiscal mismanagement have put the country in a precarious position as it now faces both a foreign debt crisis and a banking crisis. Both of these crises are likely to be exacerbated by a health crisis related to the novel coronavirus pandemic that is quickly moving around the world. While Lebanon’s number of COVID-19 infections is still relatively low, the country’s lack of a real public health system together with its high levels of debt and a lack of confidence in its banking system have left the country in a vulnerable state. Lebanon has long imported more than it exports, raising questions as to whether it can be self-sufficient and if not, how it will pay for the goods and services its citizens need, especially as the country, following the example of much of the rest of the world, closes its businesses in an attempt to slow the spread of the novel coronavirus.
Abstract: In response to desperate calls for help from government officials, doctors, and hospitals around the world, automakers are stepping up to help in the battle to stop the Covid-19 pandemic that has hit nations across the globe. Automakers, with…
As the economic fallout from the Covid-19 pandemic continues to pile up, Harvard economist Ken Rogoff says that a global recession is almost certainly in the cards, at least in the short term. Already filings for unemployment benefits have surged, stock markets around the world have crashed (taking with them the gains of the past three years), and factories and shops are shutting down. Many countries are now implementing emergency fiscal stimulus policies in an attempt to stop the carnage, but the economic chaos is expected to be especially challenging for developing countries and emerging markets. China, the origin of the novel coronavirus, now offers a glimpse of optimism as it begins to reopen its economy following its own period of social distancing and economic lockdown, although it is unclear who will buy its products if the rest of the world is staying home.