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…

What’s Really  Driving the Global Cycle

Usually it’s the US economy that drives the global cycle. As the world’s biggest economy, it makes sense. And it played out like that for most of the 20th century. But Malinen says that it’s China that is now driving the economic cycle, not the US...

Proof that Australia May Not Be Headed for Recession

One statistic — a data point that’s preceded every major US recession in the last 50 years — says Dalio and the rest of them are all wrong. And if it keeps up its 100% record then it’s likely both the world and Australia will weather the current headwinds.

Welcome to the Wealthfare State: Welfare for the Wealthy

Make no mistake about this — despite the fancy economic language — a world of quantitative easing (QE) and negative interest rates is nothing more than welfare for the wealthy. An attempt to fight the ups and downs of the business cycle by propping up asset prices.

Surviving Trump’s Trade War

Trump can completely cut off trade with China if he wants. A very scary thought for Australia. China is our biggest trading partner and the main source of demand for our exports...

The Truth About Globalisation

What is globalisation? Some might say globalisation is the recent unstoppable force that homogenises business, countries and cultures. Others say it’s the inevitable move towards a smaller, connected world.
Money Morning Australia