The market for US Treasurys has a strong claim to being the most important of all financial markets. To a greater or lesser extent, most other markets are – to some degree at least – priced in relation to it. It provides the benchmark, or risk-free rate, against which riskier assets are priced. And in […]
New funding and immigration schemes to attract top scientific talent from abroad to EU universities would have a measurable impact on European innovation over a five year horizon.
This Finance survey examines: (a) Foreign demand for US treasury securities results in substantially lower interest rates on these instruments; (b) The recent volatility in Treasury market prices is primarily due to concerns about US macroeconomic prospects
In 1970, more than half a century ago, the United Nations General Assembly passed resolution 2626 committing economically advanced countries to spending 0.7% of their gross national income (GDI) to official development assistance (ODA) by 1975. Few countries ever actually met that target. And this year both the United States and the United Kingdom have […]
The dollar is not just America’s currency but also the wider world’s reserve currency. Indeed, it is not too much of an exaggeration to say that, in most cases, the term ‘global financial system’ could just as easily be substituted for ‘global dollar system’. Whilst the extent of dollar dominance in international reserves, trade, and […]
This European survey examines (a) The reductions in Western programs of development assistance will have no measurable effects on GDP growth in the recipient countries over the next five years; (b) The reductions in Western programs of development assistance will have substantially negative effects on the most vulnerable people in the recipient countries over the next five years; (c) Development assistance motivated by the potential benefits for the donors in terms of prosperity and security is measurably more effective in promoting GDP growth in recipient countries than aid based on humanitarian or other moral principles
This US survey examines (a) The cancellation of the majority of programs run by the US Agency for International Development (USAID) will have no measurable effects on GDP growth in the recipient countries over the next five years; (b) The cancellation of the majority of USAID programs will have substantially negative effects on the most vulnerable people in the recipient countries over the next five years; (c) Development assistance motivated by the potential benefits for the donors in terms of prosperity and security is measurably more effective in promoting GDP growth in recipient countries than aid based on humanitarian or other moral principles
This Finance survey examines (a) The US dollar's status as the dominant reserve currency substantially raises its value; (b) US-led policy interventions that discouraged central banks from holding US treasury securities would substantially diminish the dollar's reserve currency status, (c) US-led policy interventions that led to a sustained weakening in the dollar would substantially damage the US government's ability to finance its deficits
Over the last few months, On Global Markets has repeatedly warned about the real economic costs of elevated levels of economic policy uncertainty. But, it seems that greater certainty on the shape of Donald Trump’s trade policy has brought its own challenges. The President’s so-called ‘Liberation Day’ reciprocal tariffs went a lot further than just […]
