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Begin New Search Topic International Political Economy Content Type Policy Brief Publication Year within 25 Years

81. Have Macroeconomic Rules of the Game Changed? Some Clues from the Phillips Curve

Author:
Samuel Howorth, Domenico Lombardi, and Pierre Siklos
Publication Date:
02-2016
Content Type:
Policy Brief
Institution:
Centre for International Governance Innovation
Abstract:
Students of macroeconomics will have heard about the central role played by the so-called Phillips curve in both theoretical and empirical analyses for almost 70 years. In 1958, A. W. Phillips reported an inverse relationship between changes in wages and the unemployment rate (Phillips 1958). The progeny of his thinking led to a revolution both in policy making and in the development of theoretical links between the real and nominal macroeconomic variables. Names such as Samuelson, Solow, Phelps, Friedman, Lucas and Sargent became associated with refinements and enhancements of the core finding reported by Phillips. Indeed, all of these economists went on to become Nobel laureates in economics, although not exclusively because of their contributions to the analysis of what has since been called the Phillips curve. Indeed, the concept is so influential that it spawned several different versions of the trade-off used to guide policy makers as a menu for the choices they face when deciding whether the gains from lower inflation are offset by the economic costs of higher unemployment. Initially, expectations of individuals or firms were ignored. This briefly gave policy makers the impression that they could simply select an inflation-unemployment combination and implement the necessary policy mix to achieve the desired outcome. Once a role for expectations was incorporated, debate centred on how forward-looking individuals are. The more forward-looking, the less likely it was that policy makers would be able to “exploit” the trade-off because, unless wages rose in purchasing-power terms, the gains from lower unemployment would, at best, be temporary once workers realized that the higher inflation, at unchanged wages, actually drives real wages down. Indeed, the pendulum swung all the way to the conclusion — reached by the 1970s and early 1980s — that the Phillips curve was illusory and there was no trade-off policy makers could exploit.
Topic:
Economics, Human Welfare, International Political Economy, Labor Issues, and Global Markets
Political Geography:
Global Focus

82. China and Russia: Gaming the West

Author:
Mathieu Duchâtel and François Godement
Publication Date:
11-2016
Content Type:
Policy Brief
Institution:
European Council on Foreign Relations (ECFR)
Abstract:
In September 2016, Russia held joint naval manoeuvres in the South China Sea with China, bringing some of its best ships to the party. Two weeks later, China shied away from joining Russia in a veto of yet another Western resolution on Syria at the UN. The discrepancy sums up the extent and the limits of the strategic convergence between both countries. The “axis of convenience” between China and Russia has, without question, grown larger. And the positive dynamics pushing cooperation forward are largely economic. But there is also a negative dynamic, coming from the West. Both countries have a perception of regime insecurity that emerges from the international promotion of democracy, and the attractiveness of corruption-free and comparably safe Western societies for individuals, be they Chinese or Russian.
Topic:
International Political Economy and International Affairs
Political Geography:
Russia and China

83. With Trump, US-China relations are no longer business as usual China may stand to gain from a Trump presidency

Author:
Andreas Bøje Forsby
Publication Date:
10-2016
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Relations between Washington and Beijing are likely to face major change once Donald Trump takes over the White House. This DIIS Policy Brief by Andreas Bøje Forsby offers an overview of US-China relations and how they are likely to develop with Donald Trump in the Oval Office. If Trump follows through on his protectionist campaign statements, China will be targeted by economic sanctions against its export industries. In most other respects, however, the Chinese may actually come to benefit from a Trump presidency, whose ‘America First’ slogan suggests a more self-centered, even neo-isolationist US foreign policy. Most importantly, a Trump administration is unlikely to sustain key elements of the US rebalance to Asia like the Trans-Pacific Partnership and the efforts to build a strategic network of like-minded states in the region to counter the rise of China.
Topic:
International Political Economy, Elections, and Geopolitics
Political Geography:
Russia and America

84. Security Concerns about Chinese Investments: Nuclear Power and Telecommunications

Author:
Yang Jiang, Aki Tonami, and Adam Moe Fejerskov
Publication Date:
11-2016
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
China actively seeks to expand its overseas investment in critical infrastructure. This involvement makes host countries uneasy especially in the West, even though financial benefits sometimes override broader national interests and security issues. China’s attempts to invest in overseas critical infra- structure, defined as infrastructure closely related to sovereignty and national security, has become a sensitive issue to host country governments parti- cularly in the West. They fear that Chinese investment in nuclear and telecommunications infrastructures entails consequences for nuclear security and safety and information security respectively. This policy brief provides an overview of how various countries have received Chinese interest in nuclear power and telecommunications.
Topic:
International Political Economy, International Security, Nuclear Power, and Geopolitics
Political Geography:
China and Global Focus

85. Brexit's Impact on the EU Institutions: Immediate implications and possibilities for reform

Author:
Teija Tiilikainen
Publication Date:
10-2016
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The direct implications of Brexit for the EU’s political system will be less significant than the indirect consequences, opening up possibilities for reform. The treaty rules on a qualified majority in the Council might need to be reconsidered due to Brexit, which will also lead to a major reshuffle of the EU’s critical political groups in the European parliament after the 2019 EP elections. The political pressure to consolidate the EMU in terms of strengthening its governance and its own fiscal capacity may grow as a part of the general reform process following on from Brexit. If the treaties are reopened, principled amendments to the institutions and decision-making of the common foreign and security policy as well as further steps within the common security and defence policy are very likely to occur. Any internal reform project shouldn’t compromise the unity and coherence of the EU any further, however, as it is currently highly exposed to both internal and external pressures.
Topic:
International Relations, International Political Economy, European Union, and Brexit
Political Geography:
Europe

86. FROM EU STRATEGY TO DEFENCE SERIES New kid on the block The European Commission and European defence

Author:
Dick Zandee
Publication Date:
12-2016
Content Type:
Policy Brief
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
The newly launched European Defence Action Plan (EDAP) opens the door to EU spending on defence. This Policy Brief analyses why the EDAP has been launched, what it is and how it will work in practice. It argues that the plan is a step change in the European Commission’s growing involvement in defence and a potential game changer in solving the problem of European military shortfalls. European capitals should therefore embrace the new kid on the block and make full use of the potential offered by the EDAP.
Topic:
Defense Policy, International Political Economy, and Military Affairs
Political Geography:
Europe and Global Focus

87. EU trade diplomacy and the cold peace in cross-Strait relations

Author:
Maaike Okano-Heijmans
Publication Date:
11-2016
Content Type:
Policy Brief
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
Today’s uncertainty in cross-Strait relations is not without consequence for third parties that maintain ties with both China and Taiwan. To what extent does (and should) the situation also impact on EU’s trade diplomacy with both sides? This policy brief argues that under today’s circumstances, the cold peace in cross-Strait relations is reason to tread carefully — and to stay on course. The May 2016 inauguration of the Taiwanese government led by Democratic Progressive Party (DPP) leader Tsai Ing-wen placed a big question mark over the future of cross-Strait relations. Within weeks, Beijing had unilaterally imposed a freeze on (semi-)official talks until the new Taiwanese President acknowledges the so-called 1992 Consensus. While confirming its ‘one China’ policy, the EU may contribute to the stability of cross-Strait relations by being a partner in China’s economic reform and by negotiating EU–China and EU–Taiwan investment agreements in parallel. In this policy brief author Maaike Okano-Heijmans builds on discussions during the 13th Symposium on ‘Sino–EU Relations and the Taiwan Question’, which was held in Shanghai from 9–11 October 2016 and in Taipei from 12–14 October 2016. These second-track dialogues were supported by the Friedrich Ebert Stiftung, the Shanghai Institute of International Studies and the Taiwanese Ministry of Foreign Affairs.
Topic:
International Relations, Foreign Policy, Diplomacy, International Political Economy, and International Trade and Finance
Political Geography:
China, Taiwan, and European Union

88. Calling a Spade a Spade: Canada's Use of Sanctions

Author:
Andrea Charron
Publication Date:
12-2016
Content Type:
Policy Brief
Institution:
Canadian Global Affairs Institute (CGAI)
Abstract:
Canada’s use of sanctions is little studied which means the full scope and effect of this tool are not appreciated. Until 2006, Canada applied sanctions in support of the United Nations almost exclusively. Since then, Canada has also applied discretionary sanctions in support of allies such as the European Union and United States’ measures in addition to those required by the UN Security Council. Lacking extraterritorial reach and with this new tendency to layer sanctions (applying UN and additional measures) requires the navigation of multiple pieces of Canadian legislation. Banks and private companies, which are largely responsible for giving effect to Canada’s sanctions, must navigate this legislation. This has ensnared a few Canadians in the process with little evidence that Canada’s application of sanctions is compelling its targets (people, companies, and states) to change their behaviour. Canada’s application of sanctions is a signal of its desire to support multilateral, collective security efforts – nothing more or less.
Topic:
International Political Economy
Political Geography:
Canada

89. A Primer to the North American Leaders’ Summit (NALS)

Author:
Colin Robertson
Publication Date:
06-2016
Content Type:
Policy Brief
Institution:
Canadian Global Affairs Institute (CGAI)
Abstract:
On Wednesday, June 29th, Canadian Prime Minister Justin Trudeau will host US President Barack Obama and Mexican President Enrique Peña Nieto for the tenth North American Leaders’ Summit (NALS). All three leaders want this meeting to succeed. For President Obama, it will advance his climate agenda continentally and help to cement his legacy in managing good neighbourhood relations. Climate also rates high in President Peña Nieto’s agenda, along with improving access for Mexican goods and mobility for Mexicans within North America. In terms of Canada-Mexico relations, President Peña Nieto expects Prime Minister Trudeau to announce the lifting of the obnoxious Canadian visa requirement. For Prime Minister Trudeau, making his debut as host of a multilateral summit, it is another demonstration that ‘Canada is back’. He must reset the Mexican relationship by announcing the long-promised lifting of the visa. He will get to know Enrique Peña Nieto better (they met briefly at November’s G20 summit and they were friendly ‘rivals’ for ‘APEC ‘hottie’ at the subsequent Manila summit). The summit represents another opportunity for ‘face-time’ with Barack Obama with whom he has quickly established a strong personal friendship and to reciprocate the hospitality of the White House meetings and state dinner in March. The North American summit comes within a week of the Brexit referendum. It will offer an opportunity for the three leaders to demonstrate a different kind of continental integration – less centralized, less bureaucratic – but still successful in mutually advancing economic prosperity that reinforces the sovereignty of each member.
Topic:
International Relations, International Political Economy, and International Affairs
Political Geography:
America and Canada

90. Canada and Saudi Arabia: A deeply flawed but necessary partnership

Author:
Thomas Juneau
Publication Date:
07-2016
Content Type:
Policy Brief
Institution:
Canadian Global Affairs Institute (CGAI)
Abstract:
The proposed $15 billion sale of light armoured vehicles to Saudi Arabia has brought significant attention – mostly negative – to Canada’s partnership with the Arabian Peninsula kingdom. Much of this criticism is valid: the human rights situation in Saudi Arabia is abysmal, and Canada and its allies incur costs by being associated with Riyadh’s poor foreign policy choices. But to stop the analysis here and call for the cancelling of the deal fails to take into account the strategic rationale underlying the relationship with Saudi Arabia. Despite its many flaws, the partnership between Saudi Arabia and West, and therefore Canada, remains necessary; rejecting it and turning Saudi Arabia into a rival would make things worse. An important implication is that the best way forward with regards to the LAV deal is to collectively hold our nose, uphold the agreement, and move on.
Topic:
International Relations and International Political Economy
Political Geography:
Canada and Saudi Arabia