WILLEM H. BUITER writes: Given the unprecedented nature of the COVID-19 pandemic and its effects on labor markets, there is a spirited debate over whether the US economy is close to returning to its full potential. If it is, the US Federal Reserve is at risk of falling behind the curve.
DALIA MARIN writes: The current global semiconductor shortage illustrates how geographic clustering of input suppliers can generate upheavals in the rest of the world. Business leaders and policymakers must think now about how to minimize the effects of future exogenous shocks on production networks and the global economy.
go to Project-Syndicate: Making Supply Chains More Resilient by Dalia Marin – Project Syndicate (project-syndicate.org)
go to Project-Syndicate website: Latin America’s Perfect Storm by Javier Solana & Enrique V. Iglesias – Project Syndicate (project-syndicate.org)
HOWARD DAVIES writes for Project-Syndicate: Current loose monetary policies in developed economies are likely to increase wealth inequality, and in the short term there is little that monetary and regulatory authorities can do about it. Resolving the problem will instead require finance ministers with a strong political mandate to implement redistributive measures.
go to Project-Syndicate website: Put Central Bankers in Their Place by Howard Davies – Project Syndicate (project-syndicate.org)
SHLOMO BEN-AMI writes for Project-Syndicate: Ongoing shifts in alliances in the region are being driven partly by Iran’s growing influence. But the real story is in the eastern Mediterranean, where the development of major gas reserves could lead to deep cooperation or breed further conflict.
go to Project-Syndicate website: Managing a New Middle-East Order by Shlomo Ben-Ami – Project Syndicate (project-syndicate.org)
go to Project-Syndicate website: How to Reach Net Zero by Helen Mountford & Mauricio Cárdenas – Project Syndicate (project-syndicate.org)
Otaviano Canuto writes for Project-Syndicate: In early July, the yield on US ten-year Treasury bonds fell to its lowest level in four months, and stock markets dipped on fears that this year’s rosy projections for economic growth will not be borne out. Still, the prevailing view is that the recent spike in inflation will be transitory, allowing the US Federal Reserve to pursue a smooth unwinding of its balance sheet at some point in the future.