26 July 2016   Leave a comment

There is little question that globalization has rattled the American presidential election.  What remains to be seen is how globalization will be affected by democratic politics.  It is unlikely that globalization itself can be stopped–production supply chains are too heavily entrenched in virtually every economy.  But Jared Bernstein suggests the ways that globalization will be reshaped by politics.

There is a growing dispute between the US and its financial partners, Europe and Japan.  The dispute centers on how much capital banks should be required to hold in order to weather a financial storm caused by debt defaults.  The US increased those requirements for American banks after the financial crisis in 2008.  Europe and Japan did not and some of their banks have increased their debt loads significantly since then.  Europe and Japan opposed the move because it would make their banks less profitable.  A decision must be made by December by the Basel Committee on Banking Supervision.

Researchers associated with the Potsdam Institute for Climate Impact Research have just published a study on whether climate-related factors have significantly contributed to recent armed-conflict outbreaks.  The question is crucially important but very difficult to assess.  Although the relationship seems intuitive, just quantifying the variables is a monumental project.  For those who are not afraid of rigorous statistical analysis, I recommend the study.

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Posted July 26, 2016 by vferraro1971 in World Politics

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