Allianz chairman Mohamed El-Erian bolsters a new American economic paradigm in lieu of the Washington consensus.

Apple Boston

2018-04-20 10:38:00 Fri ET

Allianz chairman Mohamed El-Erian bolsters a new American economic paradigm in lieu of the Washington consensus. The latter dominates the old school of thought prior to the Trump administration. Most key countries would benefit from embracing domestic deregulation and free trade and open cross-border capitalism. When the Washington consensus turns into blind faith, however, America suffers the major discontents of financial globalization such as subprime mortgage risks in the global financial crisis from 2008 to 2009.

Unemployment surges to unforeseen double digits, capital investment wanes, real productivity protracts, and U.S. residents reap lower disposable income.  Secular stagnation emerges from the worst-case scenario where the central bank hits the zero lower bound on interest rates to ease labor-market frictions, whereas, higher prices become inadvertent seigniorage taxes. Political polarization further deepens economic income and wealth inequality.

With socioeconomic advantages such as elite education and political clout, the rich become richer as most of their income and wealth would result from cash dividends and capital gains. El-Erian thus proposes his new consensus on fair trade, artificial intelligence, big data, and greater labor mobility. This new consensus better adapts to the current tech titan dominance in both American labor and capital markets.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

President Trump criticizes the potential media merger between AT&T and Time Warner.

Chanel Holden

2017-11-05 09:45:00 Sunday ET

President Trump criticizes the potential media merger between AT&T and Time Warner.

President Trump criticizes the potential media merger between AT&T and Time Warner, the latter of which owns the anti-Trump media network CNN. President

+See More

Facebook introduces a new cryptocurrency Libra as a fresh medium of exchange for e-commerce.

Dan Rochefort

2019-07-21 09:37:00 Sunday ET

Facebook introduces a new cryptocurrency Libra as a fresh medium of exchange for e-commerce.

Facebook introduces a new cryptocurrency Libra as a fresh medium of exchange for e-commerce. Libra will be available to all the 2 billion active users on Fa

+See More

Federal Reserve remains patient on future interest rate adjustments due to trade and fiscal budget negotiations.

Becky Berkman

2019-02-04 07:42:00 Monday ET

Federal Reserve remains patient on future interest rate adjustments due to trade and fiscal budget negotiations.

Federal Reserve remains patient on future interest rate adjustments due to global headwinds and impasses over American trade and fiscal budget negotiations.

+See More

Berkeley tax economists Gabriel Zucman and Emmanuel Saez find fresh insights into wealth inequality in America.

Jacob Miramar

2019-06-27 10:39:00 Thursday ET

Berkeley tax economists Gabriel Zucman and Emmanuel Saez find fresh insights into wealth inequality in America.

Berkeley tax economists Gabriel Zucman and Emmanuel Saez find fresh insights into wealth inequality in America. Their latest estimates show that the top 0.1

+See More

China poses new economic, technological, and military threats to the U.S. and many western allies.

Joseph Corr

2024-02-05 11:26:00 Monday ET

China poses new economic, technological, and military threats to the U.S. and many western allies.

China poses new economic, technological, and military threats to the U.S. and many western allies. In the U.S. government assessment, China poses new eco

+See More

The Economist digs deep into the political economy of U.S. government shutdown over 3 days in January 2018.

Apple Boston

2018-01-13 08:39:00 Saturday ET

The Economist digs deep into the political economy of U.S. government shutdown over 3 days in January 2018.

The Economist digs deep into the political economy of U.S. government shutdown over 3 days in January 2018. In more than 4 years since 2014, U.S. government

+See More