Mirkomil

Industrial Policy in China: Quantification and Impact on Misallocation This paper quantifies the size of the main industrial policy instruments in China and estimates their impact on domestic factor misallocation and aggregate productivity. The quantification of industri...

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Interesting new IMF paper on the extent of industrial policy subsidies to Chinese manufacturers and SOEs (to the extent information is available) and their impact on productivity.
www.imf.org/en/Publicati...

Trump on February 2 regarding trade with Canada: "We don't need anything they have."

Trump on March 11: "Can you imagine Canada stooping so low as to use ELECTRICITY, that so affects the life of innocent people, as a bargaining chip and threat?"

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Regional Trends
East Asia & Pacific and Europe & Central Asia have been particularly affected, experiencing the largest declines in exports over the past two years. 2/

Real and Nominal Effective exchange rates of Uzbekistan as of 2014-11

But it has been larger since 2015 if we compare GDP in terms of purchasing power.

For example, consider Kazakhstan's balance of payments data. There is a difference between the current account (+ the capital account and errors/omissions) and the financial account. As you can see, it never balances, but only after taking into account the change in reserves does it come to balance.

Reserves play a crucial role, especially in countries that intervene heavily in foreign exchange markets. If you only consider the above-the-line items, the balance of payments almost never balances, but after adding the below-the-line item (change in reserves ), then it balances. 5/

The BOP equation is:

Current Account+Capital Account−Financial Account+Errors and Omissions=Change in Reserves
or
CAB+CA−FA+E/O=ΔRES

Thus, the current account balance does not always equal the net capital inflow (net financial account). 4/

and the financial account (which includes direct investment, portfolio investment, and other investments). The below-the-line components include the change in reserves (also other financing items). Additionally, there are errors and omissions in the BOP. 3/

The above-the-line components include the current account (which consists of the trade balance, primary income balance, and secondary income balance), the capital account (which mainly includes grants and other minor items), 2/

Krugman’s equation is simple, but it lacks real-world accuracy. The balance of payments (BOP) is divided into two parts: above-the-line components and below-the-line components. 1/

And it usually takes 10-15 minutes)