Thursday 27 Jun 2019 | 08:31 | SYDNEY
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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.  

Trump's voters will be disappointed by his economics

With all the campaign blather, posturing and hyperbole, we don’t know much about the specifics of President-elect Trump’s economic policy. One thing is clear: it is not possible to satisfy the inchoate economic expectations of those who elected him. Let’s focus on a couple of economic issues

APEC: Staggering past relevance

Even though it is the region’s second oldest multilateral mechanism, APEC continues to find relevance hard to come by. Best known for the photo taken at the annual leaders’ summit at which said leaders bond over the humiliation of donning often garish 'national attire', this grouping has never

The switch to renewables: Lessons from small islands

Those actively pushing for a future where renewables take over electricity generation often point to island grids such as El Hierro in the Spanish Canary Islands, Kodiak Island in Alaska, and King Island in Australia’s Bass Strait. On those islands and others, renewables have proved a

Gloomy forecasts for economic cooperation in Moscow

Last week the Russian Presidential Academy of National Economy and Public Administration hosted a conference on the G20, BRICS and furthering international economic cooperation. In the same week, The Economist launched a ‘special report on Russia’ featuring a cover image of Vladimir

Barnaby Joyce's mixed messaging on property rights

There’s been a good deal of mixed messaging coming from Australia's Deputy Prime Minister Barnaby Joyce recently. This week he made headlines by declaring to an audience (which included the Chinese ambassador) that Labor's policies for insisting on rules concerning vegetation

The G20 Studies Centre draws to a close

Today marks the drawing down of the G20 Studies Centre at the Lowy Institute. The Centre was established to provide high quality public analysis of international economic governance. The government supported this work over the most intense period of the G20 for Australia, in the lead-up and the

Revitalising the multilateral trading system

The multilateral trading system has served Australia and our region exceptionally well, and it has delivered a program of trade liberalisation and reform over the years that has been important in underwriting global growth. But there is no doubt it is now facing multiple strains. The regrettable

If you want my opinion...

G20 summits are a busy time for scholars of global economic governance. There is a surprisingly small pool of us around the world who look at these issues day in, day out, and there are literally thousands of journalists whose minds are either turning to the G20 for the first time, or for the first

Green power has a long way to go

One factor driving energy policies across the world is repeated claims by activists that green energy is gaining substantial market share over its despised fossil fuel competitors. These claims, made for the likes of the Danish, German, Californian and even Chinese grids, are distorting the energy

Making the most of the G20

In this Lowy Institute Analysis, G20 Studies Centre Research Fellow and Project Director Tristram Sainsbury and Research Associate Hannah Wurf argue that the G20 should be at the centre of Australia’s approach to international economic engagement in the years ahead. Photo: Getty Images/VCG

The IMF debates economic neoliberalism

Like all big bureaucracies, the IMF shifts its operational doctrines slowly, rewriting its own history as it does so in order to avoid admitting past errors. We are currently witnessing another episode of this glacial move in relation to two issues: budget austerity and foreign capital flows.

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

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