As global markets continue to evolve, the relationship between commodity dependence and various facets of economic development warrants deeper examination. Many countries heavily rely on exports of primary commodities such as oil, minerals, and agricultural products, which can significantly influence their economic trajectories. However, an increasing body of research points to the troubling implications ofContinue reading “Rethinking Commodity Dependence: Its Impact on Economic Inequality, Growth, and Human Development”
Tag Archives: economics
The Interplay of Digital Services Trade, Trade Restrictions, and Institutional Quality
In today’s interconnected world, digital services trade has emerged as a cornerstone of international commerce, providing numerous opportunities for innovation and economic growth. With the rapid advancement of technology and digital connectivity, countries can facilitate cross-border transactions for services such as software development, digital marketing, and online education. While digital services trade restrictions might secureContinue reading “The Interplay of Digital Services Trade, Trade Restrictions, and Institutional Quality”
Anomaly or Structural Issue? The Curious Case of the Indonesian Middle Class and Low Purchasing Power
The lowering purchasing power and the declining middle-income class have recently become rising economic issues in Indonesia. The lower purchasing power is concerning as, according to Statistics Indonesia (Badan Pusat Statistik, BPS) data, more than half of the Indonesian macroeconomic condition is attributed to household consumption, while the middle class has become the backbone ofContinue reading “Anomaly or Structural Issue? The Curious Case of the Indonesian Middle Class and Low Purchasing Power”
ASEAN’s Regional Economic Integration Amidst the Digital Era
Cross-border transactions involving services include the movement of either the producer, the consumer, or capital for investment purposes. The General Agreement on Trade in Services (GATS) defines cross-border trade in services using four modes of supply: Mode 1 involves the flow of services from one country’s territory to the trade partner’s territory; Mode 2 consistsContinue reading “ASEAN’s Regional Economic Integration Amidst the Digital Era”
On The Potential Effect of Türkiye’s Decrease in Interest Rate on Its Macroeconomic Outcomes
As the government of Türkiye has decided to lower the interest rate (Pitel, 2022), one important question that arises would be: what is the impact of the decision on the Türkiye economy? To answer the possible effect on Türkiye’s economy, the IS-LM theory in international macroeconomics can be applied as an explanation as it isContinue reading “On The Potential Effect of Türkiye’s Decrease in Interest Rate on Its Macroeconomic Outcomes”
Revisiting the Relevance of International Macroeconomic Policy Coordination
Given the uncertainty in the current global economic situation, one question arises regarding whether international macroeconomic policy coordination is still relevant. The choice of whether to implement international macroeconomic policy coordination depends on the specific circumstances, as explained in previous literature on the topic. First, the success of cooperation and coordination principally requires the sharingContinue reading “Revisiting the Relevance of International Macroeconomic Policy Coordination”
On Dilemma Not Trilemma: The Global Financial Cycle and Monetary Policy Independence
Based on the theory (Feenstra and Taylor, 2016), three key conditions faced by open economies: a fixed exchange rate that can enhance stability in trade and investment, free international capital mobility that can promote integration, efficiency, and risk-sharing, and monetary policy autonomy that can provide control over the economy’s business cycle. The trilemma suggests thatContinue reading “On Dilemma Not Trilemma: The Global Financial Cycle and Monetary Policy Independence “
A Comment on Navigating the Debt Legacy of The Pandemic
In their article, Kose, Ohnsorge, and Sugawara (2021) proposed several measures that countries could take to address debt-related risks before the next crisis or pandemic. However, it is important to note that the suggestions might need more details. Hence, this post serves as a comment that would contribute to more detailed measures. The first suggestedContinue reading “A Comment on Navigating the Debt Legacy of The Pandemic”
This Too Shall Pass
Getting too much or too little of anything indicates a non-optimal state. It means that being in such a condition is not being at equilibrium since it is not in the appropriate portion and place. For instance, excessively feeling happy, such as euphoric could lead an individual to be off guard and ignore something thatContinue reading “This Too Shall Pass”
hope. 