In early May 2019, the United States announced it would deploy an aircraft carrier, B-52 strategic bombers, and a Patriot missile battery to the Gulf region, declaring it had received information that Iran intended to strike US targets or those of its allies, directly or through a proxy. The United States followed with a new round of sanctions targeting Iran’s oil industry.
Please join the Atlantic Council’s Asia Security Initiative, housed within the Scowcroft Center for Strategy and Security, for a public panel discussion on forward-looking recommendations for the future of US-China relations and US strategy towards China. How should the United States and its allies work together to respond to China’s ongoing rise? What are the advantages and limits of the current US approach? Ultimately, can the United States and China be both strategic competitors and, at least in some areas, strategic cooperators at the same time?
The Scowcroft Center for Strategy and Security works to develop sustainable, nonpartisan strategies to address the most important security challenges facing the United States and the world. The Center honors General Brent Scowcroft’s legacy of service and embodies his ethos of nonpartisan commitment to the cause of security, support for US leadership in cooperation with allies and partners, and dedication to the mentorship of the next generation of leaders.
The John F. Kennedy School of Government at Harvard University
Abstract:
This paper investigates the formation of production and trading networks in an economy with general interdependencies and complex property rights. The right to exclude,a core tenet of property, grants asset owners a form of monopoly power that influences granular economic interactions. Equilibrium networks reflect the distribution of these ownership claims. Inefficient production networks may endure in equilibrium as firms multi-source to mitigate hold-up risk. Short supply chains also reduce this risk, but may preclude the production of complex goods. A generalized Top Trading Cycles algorithm, applicable to a production economy, identifies equilibrium outcomes in the model. Such outcomes can be decentralized via a price system.
Topic:
International Trade and Finance, International Affairs, Intellectual Property/Copyright, and National & provincial initiatives
Let us stipulate at the outset that President Trump is a vulgar and dishonest fraud without a principled bone in his body.
Yet history is nothing if not a tale overflowing with irony. Despite his massive shortcomings, President Trump appears intent on recalibrating America’s role in the world. Initiating a long-overdue process of aligning U.S. policy with actually existing global conditions just may prove to be his providentially anointed function.
he Trump administration’s Section 301 tariffs are an ineffective response to US concerns about China’s high-technology aspirations. They are a prime example of 20th century tools aimed at the knowledge-embodying trade flows of the 21st century. Instead, these tariffs disadvantage American producers and harm US allies operating in East Asia while missing the mark on penalizing Chinese domestic firms that may have misappropriated US and other advanced economies’ technologies.
We examine the distribution of student loan balances and repayment rates in the United States using administrative student loan data. We show that increases in credit limits and expansions in credit availability resulted in rising borrowing amounts, and that the share of borrowers holding very large balances has surged. For instance, the share of borrowers leaving school with more than $50,000 of federal student debt increased from 2 percent in 1992 to 17 percent in 2014. Consequently, a small share of borrowers now owes the majority of loan dollars in the United States. Although these large-balance borrowers have historically strong labor market outcomes and low rates of default, repayment rates have slowed significantly between 1990 and 2014 reflecting, in part, changes in the characteristics of students, the schools they attended, and the rising amounts borrowed. A decomposition analysis indicates that changes in the types of institutions attended, student demographics, default rates, and increased participation of alternative repayment plans and forbearance largely explain the decrease in student loan repayment.
Until recently, we were operating under the assumption that the liberal world order would prove sufficiently inclusive, productive and resilient to serve as a stable framework for international cooperation. But such optimism seems increasingly unwarranted as a wide host of existential challenges have materialized, including the return of geopolitics, the resurgence of autocratic leadership, the revival of economic protectionism and the rising tide of populism and nationalism.
Topic:
International Political Economy and International Affairs
Brookings Senior Fellow Eswar Prasad unpacks the impact of the new steel and aluminum tariffs proposed by the Trump administration. He explains that the new tariffs have undermined America’s leadership as proponents of free trade and will decrease America’s economic influence across the globe.