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881. A New Bi-continental Approach to Transatlantic Defence Cooperation

Author:
Michele Nones
Publication Date:
06-2007
Content Type:
Journal Article
Journal:
The International Spectator
Institution:
Istituto Affari Internazionali
Abstract:
The prospect of transatlantic cooperation in the field of defence systems depends on reaching an acceptable point of equilibrium. Without it, Europe would find the strategic, political, economic, and industrial risks of total American predominance in this field (with the consequent loss of technical and production expertise) unacceptable. The reduction of the gap between Europe and the United States depends on the integration of the European defence market. This must not be seen as a risk for transatlantic collaboration, but as an opportunity. Building up a transatlantic market could also improve the efficiency of the American market by increasing competition. This collaboration, based not on bilateral, national, or multilateral agreements, but instead on bi-continental cooperation, is the challenge that Europe and the United States must face and meet together.
Topic:
Economics
Political Geography:
United States, America, and Europe

882. The Individual Sources of Economic Nationalism: Evidence From Survey Data

Author:
Pablo M. Pinto and Carmen M. Le Foulon
Publication Date:
12-2007
Content Type:
Working Paper
Institution:
Arnold A. Saltzman Institute of War and Peace Studies
Abstract:
Political leaders in troubled democracies around the world have resorted to an anti-foreign rhetoric to justify the adoption of policies restricting foreign imports, and the free flow of capital and people, allegedly in defense of the national interest. And this rhetoric has resonated positively with large sectors of the electorate in those countries. A similar trend, exploiting a nationalistic sentiment for economic purposes, is observed in campaigns in the United States to buy American. Most studies to date have analyzed the causes and consequences of economic nationalism at the state level. However, there is good reason to believe that sources of economic nationalism should be traced at the individual level: some individuals might be willing to embrace economic nationalism purely on self-interest, yet others will be forced to trade off material and ideational preferences in order to support the national industry. The existence of this tradeoff at the individual level has important implications for coalition formation on trade, investment and migration policy-making. While recent studies suggest that cultural and ideational interests are likely to influence individual attitudes towards trade, one of the central policy dimensions in economic nationalism, the empirical content of the tradeoff between material and non-material preferences remains untested to date. Using data from the International Social Survey Program (ISSP 2003) we explore whether the effect of nationalism on attitudes towards protectionism varies with the individual's position in the economy. We find preliminary evidence that nationalism systematically affects attitudes towards trade in the United States, but less so in the Philippines. We also find that the effect of nationalism is conditional on individuals' skill, or position in the economy.
Topic:
Economics, Nationalism, and Culture
Political Geography:
United States

883. Reconstructing Iraq

Author:
Jason Yossef Ben-Meir
Publication Date:
01-2007
Content Type:
Policy Brief
Institution:
Foreign Policy In Focus
Abstract:
The new strategy of the United States in Iraq does not include an extensive overhaul of reconstruction efforts at this critical time. Very little money is now being appropriated for reconstruction. As the Iraq Study Group Report explains, of the $21 billion to date that has been appropriated for the “Iraq Relief and Reconstruction Fund” (IRRF), $16 billion has been spent and the remaining funds have been committed. The administration requested $750 million for 2007, and President Bush's new proposal is to add $1.2 billion to that.
Topic:
International Relations, Development, and Economics
Political Geography:
United States, Iraq, and Middle East

884. The Role of China in Asia: Engine, Conduit, or Steamroller?

Author:
Beth Anne Wilson, Jane T. Haltmaier, Shaghil Ahmed, Brahima Coulibaly, Ross Knippenberg, Sylvain Leduc, and Mario Marazzi
Publication Date:
09-2007
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
This paper assesses China's role in Asia as an independent engine of growth, as a conduit of demand from the industrial countries, and as a competitor for export markets. We provide both macroeconomic and microeconomic evidence. The macroeconomic analysis focuses on the impact of U.S. and Chinese demand on the output of the Asian economies by estimating growth comovements and VARs. The results suggest an increasing role of China as an independent source of growth. The microeconomic analysis decomposes trade into basic products, parts and components, and finished goods. We find a large role for parts and components trade consistent with China playing an important and increasing role as a conduit. We also estimate some regressions that show that China's increasing presence in export markets has had a negative effect on exports of some products for some other Asian economies, but not for other products, including those of the important electronic high-technology industry.
Topic:
Development, Economics, International Trade and Finance, and Markets
Political Geography:
United States, China, and Asia

885. Exchange Rate Pass-Through to Export Prices: Assessing Some Cross-Country Evidence

Author:
Robert Vigfusson, Nathan Sheets, and Joseph Gagnon
Publication Date:
09-2007
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
A growing body of empirical work has found evidence of a decline in exchange rate pass-through to import prices in a number of industrial countries. Our paper complements this work by examining pass-through from the other side of the transaction; that is, we assess the exchange rate sensitivity of export prices (denominated in the exporter's currency). We first sketch out a streamlined analytical model that highlights some key factors that determine pass-through. Using this model as reference, we find that the prices charged on exports to the United States are more responsive to the exchange rate than is the case for export prices to other destinations, which is consistent with results in the literature suggesting that import price pass-through in the U.S. market is relatively low. We also find that moves in the exchange rate sensitivity of export prices over time have been significantly affected by country and region-specific factors, including the Asian financial crisis (for emerging Asia), deepening integration with the United States (for Canada), and the effects of the 1992 ERM crisis (for the United Kingdom).
Topic:
Economics, Foreign Exchange, International Trade and Finance, and Markets
Political Geography:
United States, United Kingdom, Canada, and Asia

886. U.S. External Adjustment: Is It Disorderly? Is It Unique? Will It Disrupt the Rest of the World?

Author:
Steven B. Kamin and Trevor A. Reeve
Publication Date:
04-2007
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
In recent years, a number of studies have analyzed the experiences of a broad range of industrial economies during periods when their current account deficits have narrowed. Such studies identified systematic aspects of external adjustment, but it is unclear how good a guide the experience of other countries may be to the effects of a future narrowing of the U.S. external imbalance. In contrast, this paper focuses in depth on the historical experience of external adjustment in the United States. Using data from the past thirty-five years, we compare economic performance in episodes during which the U.S. trade balance deteriorated and episodes during which it adjusted. We find trade balance adjustment to have been generally benign: U.S. real GDP growth tended to fall, but not to a statistically significant extent; housing construction slumped; inflation generally rose modestly; and although nominal interest rates tended to rise, real interest rates fell. The paper then compares these outcomes to those in foreign industrial economies. We find that the economic performance of the United States during periods of external adjustment is remarkably similar to the foreign experience. Finally, we also examine the performance of the foreign industrial economies during the periods of U.S. deterioration and adjustment. Contrary to concerns that U.S. adjustment will prove injurious to foreign economies, our analysis suggests that the foreign economies fared reasonably well during past periods when the U.S. trade deficit narrowed: the growth of domestic demand and real GDP abroad generally strengthened during such episodes, although inflation and interest rates tended to rise as well.
Topic:
Economics, Foreign Exchange, International Trade and Finance, and Markets
Political Geography:
United States

887. America Speaks Out: Is the United States spending too much on defense?

Author:
Carl Conetta
Publication Date:
03-2007
Content Type:
Working Paper
Institution:
Project on Defense Alternatives
Abstract:
On 1-4 February 2007, the Gallup polling organization asked a representative sample of US citizens if they thought the United States was spending too little, too much, or just the right amount on defense and the military.{1} For the first time since the mid-1990s, a plurality of Americans said that the country was spending too much. The surprising result of the survey shows current public attitudes to approximate those that prevailed in March 1993, shortly after former President Bill Clinton took office. Today, 43 percent of Americans say that the country is spending “too much” on the military, while 20 percent say “too little”. In 1993, the balance of opinion was 42 percent saying “too much” and 17 percent saying too little.
Topic:
Defense Policy, Economics, and War
Political Geography:
United States and America

888. Economic Survey of the United States, 2007

Publication Date:
05-2007
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Despite a sharp housing market correction, overall growth has been holding up fairly well. Strong foreign demand and a decline in import growth have slowed the rise in the external deficit. With activity near capacity limits, some inflationary pressures have emerged. Reining them in without stifling growth is the main challenge for monetary policy. Looking further ahead, the key challenges are to sustain healthy growth and ensure fiscal sustainability in the face of population ageing. Against this backdrop, the Survey focuses on the following issues: Enhancing the economy's growth potential. Trend growth is slowing because labour productivity gains, though remaining high, no longer suffice to compensate for the deceleration in potential employment due mainly to demographic factors. Prospects for productivity growth appear favourable, but further efficiency gains could be achieved by tackling unfinished business in the area of structural reform. Labour supply could be boosted by increasing work incentives for the disabled, raising the earned income tax credit and delaying retirement eligibility.
Topic:
Development, Economics, and Markets
Political Geography:
United States

889. Stabilizing Future Fiscal Policy: It's Time to Pull the Trigger

Author:
C. Eugene Steuerle and Rudolph G. Penner
Publication Date:
08-2007
Content Type:
Working Paper
Institution:
Urban Institute
Abstract:
Fiscal policy is simply out of control. It's not the deficit per se, however—we have had deficits before. Usually, they could be easily contained in subsequent years simply by allowing revenues to grow as the economy expanded while enacting only small or no increases in appropriations for discretionary programs, most of which were newly funded every year. But discretionary programs now constitute less than 40 percent of spending, whereas they were almost 70 percent of spending in 1962. In fiscal year 2006, mandatory spending and interest made up 62 percent of spending.
Topic:
Economics and Government
Political Geography:
United States

890. Employment Generation and Economic Development in Stabilization and Reconstruction Operations

Author:
Merriam Mashatt and Johanna Mendelson-Forman
Publication Date:
03-2007
Content Type:
Working Paper
Institution:
United States Institute of Peace
Abstract:
It seems logical that improving the lives of those who have suffered from conflict would include a program to generate economic well-being in the immediate period after hostilities subside. Yet livelihood creation, the root of potential economic success and security, has often become a secondary objective in the transformation from war to peace. An obvious reason for this relegation to a lower priority is that security, humanitarian needs, and restoring the rule of law often overtake the economic development priorities of any peace-building mission. Even in Iraq, the largest stabilization and reconstruction effort undertaken by the U.S. government, restoring livelihoods and getting people back to work remains an unresolved challenge and an unmet agenda. Of the nearly $20 billion of U.S.-appropriated funds to reconstruct Iraq, only $805 million was directed toward jump-starting the private sector. Although employment generation is not a new subject in “postwar” literature, lessons about implementation vary from one country to the next. Current knowledge about “golden hour” job creation, which is creating jobs within one year of the cessation of hostilities, is culled more from specific pilot studies than from a coherent overview of what tools exist and how they can be applied. This report advances current research by providing such an overview for U.S. government policymakers. It seeks to help the U.S. government work through the lessons learned about the processes needed to generate employment. Moreover, it explores the U.S. government strategy toward golden hour job creation, the existing civilian and military tools, and how these tools can be better incorporated into larger transformation efforts. The report also notes the limitations of U.S. civilian capacity in a nonpermissive environment.
Topic:
Security, Development, Economics, and Peace Studies
Political Geography:
United States