Global Economy

The global economy, at a basic level, refers to the exchange of goods and services around the world.

Global economic conditions, trade and capital flows have substantial implications for the Australian economy, and for Australia’s regional trading partners.

Understanding the broad trends, emerging challenges and opportunities that exist within the global economy is crucial.

Lucky for you, our editors and analysts at Money Morning cover this section daily.

The modern global economy became highly integrated following the 2008 global financial crisis, a great example as to explain the interconnectedness of the world economic system.

What first began as a localised problem within the residential asset-backed securities market in the US, eventually saw the fall of major financial firms across the Western world, and ultimately pushed the US and Europe into a deep and prolonged recession.

Although global economic growth has somewhat recovered since then, it is still much lower than pre-2008 trends. The hangover remaining from the crisis has caused high unemployment levels and inequality throughout much of the developing world.

More recently, the Chinese economy has started to rise to a global power, and India and Indonesia have become major players in the global economy.

It’s important to pay attention to these changing trends to protect yourself and your assets.

For the latest international economic news covering international markets, trade, stock markets, investment trends and more, read on…

Iran Follows Trump with an Ultimatum of Their Own

After seeing Trump’s ultimatum tactic on China, Iran is thinking of doing something similar. You might remember about a year ago, Trump walked away from the landmark nuclear deal. He also imposed economic, trade, scientific and military bans on Iran.

The Next Anvil Waiting to Drop

As Trump continues to starve China of dollars, the Middle Kingdom might become more desperate. We’ve already seen them lower required reverse ratios for small lenders. This effectively lets them create more money with the current reserve assets they have.

What We Can Learn from Japan’s Property Market

Back in the 1980s, Japan went through a period of record low interest rates that fuelled an asset bubble to record highs…sound familiar? The bubble pushed the stock market and real estate prices to new heights…and then it burst in 1992. It was devastating.

Want a Pay Rise? Good Luck!

In 2019, Spain increased their minimum wage from €736 (around AUD 1,170) to €900 (around AUD 1,430). This is a 22% sudden salary jump. Will the increase spur spending which will then increase hiring and reduce unemployment…or will it create inflation and higher unemployment?

Why a Broke China Is Good for Australia

How does a falling China lift Australia up? They are our largest trading partner. They buy a ton of stuff from down under… If growth falters, meaning businesses are producing and likely earning less, why would they buy more from Aussies?
Money Morning Australia