China’s surplus is not the greatest contributor to imbalances—the US deficit is. As a share of global GDP, the US’ current account imbalance was 2-3x that of China in 2023 to 2024, Nicholas Lardy writes in response to @MikeFroman in @ForeignAffairs.
foreignaffairs.com/guest-pas…
The more governments create bureaucracies devoted to identifying & controlling economic chokepoints, the more a chokepoint logic becomes the default lens through which they make even routine economic policy. foreignaffairs.com/guest-pas…
Peterson Institute retweeted
When policymakers fixate on economic chokepoints, they “focus on capabilities rather than strategy,” write Henry Farrell, Abraham Newman, and @YelingT. “The result is a familiar but dangerous dynamic: the security dilemma.”
foreignaffairs.com/united-st…
Peterson Institute retweeted
Both Bolsonaro and Lula are trying to win over “voters by promising initiatives that boost income and offer household debt relief, but delivering such programs—if it is even possible—would only exacerbate Brazil’s economic woes,” writes Monica de Bolle.
foreignaffairs.com/brazil/br…
The main effects of a drop in international students & workers in the US will take years to materialize, but will likely result in "fewer inventions, fewer new businesses & fewer new industries, at a time when we desperately need all of those things to adjust to the AI shock," @m_clem says. pbs.org/newshour/politics/ho…
Monica de Bolle joined @cnni to discuss the upcoming presidential runoff election in Brazil & how regardless of who wins, either candidate will face challenges in fixing Brazil’s economic woes.
Despite his original skepticism about central bank asset purchases, Klaas Knot, a former president of De Nederlandsche Bank, now sees them as an integral part of the monetary policy toolkit. But effectiveness depends on economic context & fiscal policy. piie.com/publications/policy…
What would truly doom Brazil to economic crisis is the kind of authoritarian-inspired politics that a Bolsonaro government could usher in.
foreignaffairs.com/guest-pas…
Seeing the world economy as a chokepoints system leads policymakers to focus on capabilities, not strategy—fixate on leverage they have, & what others have over them, rather than considering what happens when many build up chokepoint power all at once.foreignaffairs.com/guest-pas…
Like its peers, when the Brazilian far right says it can overcome the country’s substantial problems with institutional demolition and a threadbare economic agenda, what it really offers is empty promises. foreignaffairs.com/guest-pas…
In September 2026, Trump suggested he is open to Chinese automakers building cars in the US. The administration can & should explore ways to ease or remove the barriers to Chinese investment in EVs in the US, Alan Wolff writes. piie.com/publications/policy…
Peterson Institute retweeted
Europe wants growth, innovation and strategic autonomy. But can it become more competitive without becoming more dependent on the US? @maxhofmann speaks with @MalmstromEU and @K_Steinecke on this week's #BerlinBriefing from the @Bgdialogue youtube.com/watch?v=VsFgDP1y…
Given the shifting geopolitical order—including Russia's invasion of Ukraine & recent trade & institutional frictions with the US—Klaas Knot believes a bigger international role for the euro would be desirable & achievable, under certain conditions.
piie.com/publications/policy…
Peterson Institute retweeted
“Like its peers, when the Brazilian far right says it can overcome the country’s substantial problems with institutional demolition and a threadbare economic agenda, what it really offers is empty promises,” writes Monica de Bolle.
foreignaffairs.com/brazil/br…
Viewing the world economy as a system of chokepoints has its own deadly blind spot, Yeling Tan & coauthors write in @ForeignAffairs. It is leading policymakers to focus on capabilities rather than strategy—to fixate on what leverage they have, & what leverage others have over them, rather than considering what happens when many countries build up their chokepoint power all at once. foreignaffairs.com/united-st…
Neither Lula nor Bolsonaro is well positioned to solve Brazil’s economic problems. A decisive turn toward illiberalism under Bolsonaro, however, would all but assure economic disaster, Monica de Bolle writes in @ForeignAffairs. foreignaffairs.com/guest-pas…
Reducing the magnitude of global imbalances is a desirable goal, but it is best achieved through international cooperation & not unilateral action, Nicholas Lardy writes in response to @MikeFroman in @ForeignAffairs.
foreignaffairs.com/guest-pas…
We have once again updated our trade war timeline. Bookmark it so you don't miss anything: piie.com/blogs/realtime-econ…
Canada is not & will not become a candidate country to the European Union, nor does it want to be. But there are still strong prospects for deepening EU-Canada ties.
By @MalmstromEU & @inumanak: piie.com/blogs/realtime-econ…


