you are currently viewing::WTO-Trade imbalances and the limits of trade policyJuly 31, 2025--Trade imbalances have long been a concern for policymakers, prompting calls for corrective trade measures. Recent tariff actions- framed in part as efforts to reduce bilateral deficits -fit this established pattern. Notable precedents include the United States-Japan trade tensions of the 1980s and the global imbalance debates following the 2008 financial crisis. The connection is not merely anecdotal: empirical research shows that trade imbalances, particularly at the bilateral level, are strong predictors of trade action. Interpreting trade imbalances From an economic perspective, trade imbalances are not necessarily problematic. Sectoral imbalances arise from specialization: a country with a comparative advantage in services may run a surplus in services and a deficit in goods. Aggregate imbalances, in turn, reflect differences between national saving and investment. If a country invests more than it saves, the additional investment goods must come from abroad. From this perspective, trade imbalances are not signs of dysfunction, but channels through which economies realize the gains from trade, across sectors and over time. While trade imbalances can therefore reflect healthy economic forces, they are not immune to policy distortion. Tariffs can alter sectoral trade patterns, reducing the deficit in a targeted sector at the expense of other sectors. They can also distort bilateral flows, narrowing the deficit with a targeted partner while widening it with others. Industrial policy, now central to many policy debates, can have similar effects. Long-run broad-based industrial policy intervention can significantly influence the allocation of resources across sectors, often promoting tradable manufacturing over non-tradable services. Source: World Trade Organization (WTO) |
September 25, 2025-The industry's first licensed institutional-grade index token will be available to trade on Kraken
Reserve, the industry's leading platform for DTFs (Decentralized Token Folios), has announced the Large Cap Index DTF (LCAP), in partnership with CF Benchmarks, the UK FCA-regulated crypto index provider behind BlackRock's Bitcoin ETF.
September 22, 2025-Global central banks have purchased over 1,000 tonnes of gold annually for the last three years, representing a dramatic acceleration from the 400-500 tonne average of the preceding decade, according to the World Gold Council[1].
September 4, 2025--Key Highlights:
Argentina and Turkey remain outliers, with inflation at 36.6% and 33.5%-the highest in the G20 despite some cooling.
The United States held steady at 2.7%, lower than expected even amid tariff pressures.
The United Kingdom saw inflation climb to 3.8%, running hotter than market forecasts.
September 4, 2025--Policymakers will need to achieve a difficult balance between benefits and risks while safeguarding both individual consumers and financial stability
Three years ago, Finance & Development devoted a full issue to anticipating "The Money Revolution," driven by innovations in finance, such as crypto assets. That revolution is now unfolding.
September 4, 2025--New technologies are rewiring liquidity, payments, and economic stability
More than 15 years after the global financial crisis,the banking and financial system looks safer. But it's also evolving in ways that are reshaping who provides liquidity,how money moves,and risks to economic and financial stability. As a result,the next shock may begin not in a bank,but in the new infrastructure underpinning the system.
September 3, 2025--Ondo Global Markets offers 24/7 onchain exposure to U.S. stocks and ETFs
Over 100 U.S. securities are now available, with hundreds more coming
Available to qualifying global (non-U.S.) investors, making Ondo one of the largest gateways to U.S. markets for global investors
August 27, 2025--FBS, a leading global broker, has published a new market analysis highlighting that the upcoming altseason will look very different from past cycles. Unlike the retail-driven chaos of 2021, today's crypto market is heavier, more selective, and increasingly shaped by political and institutional forces.