13 Items

Blog Post - Views on the Economy and the World

Addressing Commodity Price Volatility in Algeria & Morocco

| June 11, 2016
I recently visited Algeria and Morocco.  Like so many other developing countries, they are dealing with the sharp decline in global commodity prices that has taken place over the last few years.  In meetings in Algiers and Casablanca, I offered four concrete ideas for policies to help commodity-exporting countries deal with global price volatility.  The four proposals, very briefly, are: (1) hedging with options (as Mexico does), (2) commodity bonds, (3) countercyclical fiscal institutions (like Chile’s), and (4) central bank targeting of a currency-plus-commodity basket.

Blog Post - Views on the Economy and the World

Fiscal Education for the G-7

| May 26, 2016
As the G-7 Leaders gather in Ise-Shima, Japan, on May 26-27, the still fragile global economy is on their minds.  They would like a road map to address stagnant growth. Their approach should be to talk less about currency wars and more about fiscal policy.Fiscal policy vs. monetary policyUnder the conditions that have prevailed in most major countries over the last ten years, we have reason to think that fiscal policy is a more powerful tool for affecting the level of economic activity, as compared to monetary policy.

Blog Post - Views on the Economy and the World

A Pre-Lima Scorecard for Evaluating Who is Doing their Fair Share in Pledged Carbon Cuts

| Nov. 19, 2014
Those worried about the future of the earth’s climate are hoping that this year’s climate change convention in Lima, Peru, December 2014, will yield progress toward specific national commitments, looking ahead to an international agreement at the make-or-break Paris meeting to take place in December 2015.The precedent of the Kyoto Protocol negotiated in 1997 is more discouraging than encouraging. It was an encouraging precedent in that countries were politically able to agree on legally binding quantitative limits to their emissions of Greenhouse Gases, to be achieved with the aid of international trading and other market mechanisms.

Charles Schumer Intrepid Museum

Blog Post - Iran Matters

Inside the Nuclear Weapon Free Iran Act of 2013

| Dec. 19, 2013

News broke yesterday that three prominent senators—Menendez (D-NJ), Kirk (R-IL), and Schumer (D-NY)—may introduce legislation this year that would impose new sanctions against Iran with a “deferred trigger.” That is, the new sanctions can be averted only if the Obama administration provides specific and difficult certifications every 30 days including that Iran is implementing the terms of the November 24 Joint Plan of Action and negotiating “in good faith” toward a final deal. Based on an advance copy of the “Nuclear Weapon Free Iran Act of 2013,” I summarize the substance of the draft legislation, including both the new proposed sanctions and the complicated set of presidential certifications and notifications to waive existing sanctions and suspend the additional sanctions.  In a second post, I examine the current legislative state of play and the likely administration objections to the draft legislation.

Iran Matters

Blog Post - Iran Matters

Anticipating objections to the Nuclear Weapon Free Iran Act

| Dec. 19, 2013

In the near term, the Obama administration does not yet need to engage Senators Menendez, Kirk, and Schumer on the details of their proposed Nuclear Weapon Free Act of 2013. The upcoming congressional recess and the protection of friendly senators (including Senate Majority Leader Harry Reid and Chairman of the Senate Banking and Finance Committee Tim Johnson) are likely to delay consideration of the bill for the time being. However, congressional support for sanctions legislation against Iran has strong bipartisan support, and pressure for additional legislation is likely to grow if – as seems likely – it becomes apparent in coming months that negotiations between the P5+1 and Iran on a final agreement are not faring well. In the event that the Obama administration is forced to enter into negotiations with Congress on new sanctions legislation, the White House is likely to have several objections to the proposed Senate legislation, especially on the certification requirements to waive or suspend sanctions.

Blog Post - Views on the Economy and the World

The Ibrahim Prize for Excellence Among African Leaders

| Oct. 21, 2013
On October 14, the Mo Ibrahim PrizeCommittee announced, for the second year in a row, that it had not found anyone to whom to award its Prize for Achievement in African Leadership.The Prize is given to a recently-retired Executive Head of State or Government in Africa who satisfies the criteria of having been democratically elected, having left at the end of his or her constitutionally mandated term, and having demonstrated exceptional leadership.  The winner receives $5 million paid over ten years, followed by $200,000 annually for life, which makes it the world’s most valuable annually awarded prizeThe Mo Ibrahim Foundation supports other valuable activities as well, especially the annual rating and ranking of countries in the Index of African Governance, which was also released October 14.

Blog Post - Views on the Economy and the World

Escaping The Oil Curse

| Dec. 15, 2011
Libyans have a new lease on life, a feeling that, at long last, they are the masters of their own fate. Perhaps Iraqis, after a decade of warfare, feel the same way. Both countries are oil producers, and there is widespread expectation among their citizens that that wealth will be a big advantage in rebuilding their societies.Meanwhile, in Africa, Ghana has begun pumping oil for the first time, and Uganda is about to do so as well. Indeed, from West Africa to Mongolia, countries are experiencing windfalls from new sources of oil and mineral wealth.

Blog Post - Views on the Economy and the World

Barrels, Bushels & Bonds: How Commodity-Exporters Can Hedge Volatility

| Oct. 20, 2011
The prices of minerals, hydrocarbons, and agricultural commodities have been on a veritable roller coaster. Although commodity prices are always more variable than those for manufactured goods and services, commodity markets over the last five years have seen extraordinary volatility.Countries that specialize in the export of oil, copper, iron ore, wheat, coffee, or other commodities have boomed.  But they are highly vulnerable. Dollar commodity prices could plunge at any time, as a result of a new global recession, a hard landing in China, an increase in real interest rates in the United States, fluctuations in climate, or random sector-specific factors.

Blog Post - Views on the Economy and the World

Combating Volatility in Agricultural Prices

| June 27, 2011
  Under French President Nicolas Sarkozy’s leadership, the G-20 has made addressing food-price volatility a top priority this year, with member states’ agriculture ministers meeting recently in Paris to come up with solutions. The choice of priorities has turned out to be timely: world food prices reached a record high earlier in 2011, recalling a similar price spike in 2008.   Consumers are hurting worldwide, especially the poor, for whom food takes a major bite out of household budgets. Popular discontent over food prices has fueled political instability in some countries, most notably in Egypt and Tunisia.

Blog Post - Views on the Economy and the World

The IMF Head Can’t Come from Emerging Markets Unless They Get Behind a Candidate

| May 27, 2011
It is time for the Managing Director of the International Monetary Fund to come from an emerging market country. But that has been said often before. Whining about the injustice of the 65-year duopoly under which the IMF MD comes from Europe and the World Bank President comes from the US won’t change anything. Only if emerging market countries were to unify quickly behind a single strong candidate would they have a shot at the post. They are evidently too fragmented even to make an effort to come together in this way.