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

America and China cannot decouple decades of long-term collaboration in trade, finance, and technology.

Becky Berkman

2019-12-16 11:37:00 Monday ET

America and China cannot decouple decades of long-term collaboration in trade, finance, and technology.

America and China cannot decouple decades of long-term collaboration in trade, finance, and technology. In recent times, some economists claim that China ma

+See More

Stock Synopsis: With a new Python program, we use, adapt, apply, and leverage each of the mainstream Gemini Gen AI models to conduct this comprehensive fundamental analysis of Intuit (U.S. stock symbol: $INTU).

Dan Rochefort

2025-10-12 13:32:00 Sunday ET

Stock Synopsis: With a new Python program, we use, adapt, apply, and leverage each of the mainstream Gemini Gen AI models to conduct this comprehensive fundamental analysis of Intuit (U.S. stock symbol: $INTU).

Stock Synopsis: With a new Python program, we use, adapt, apply, and leverage each of the mainstream Gemini Gen AI models to conduct this comprehensive fund

+See More

Federal Reserve reduces the interest rate by another quarter point to the target range of 1.75%-2% in September 2019.

John Fourier

2019-10-07 12:35:00 Monday ET

Federal Reserve reduces the interest rate by another quarter point to the target range of 1.75%-2% in September 2019.

Federal Reserve reduces the interest rate by another key quarter point to the target range of 1.75%-2% in September 2019. In accordance with the Federal Res

+See More

Credit supply growth drives business cycle fluctuations and often sows the seeds of their own subsequent destruction.

Fiona Sydney

2018-04-26 07:37:00 Thursday ET

Credit supply growth drives business cycle fluctuations and often sows the seeds of their own subsequent destruction.

Credit supply growth drives business cycle fluctuations and often sows the seeds of their own subsequent destruction. The global financial crisis from 2008

+See More

Uniform field theory of corporate finance

Peter Prince

2022-11-25 09:29:00 Friday ET

Uniform field theory of corporate finance

Uniform field theory of corporate finance While the agency and precautionary-motive stories are complementary, these stories can be nested as special cas

+See More

U.S. inflation has become sustainably less than the 2% policy target in recent years.

Jonah Whanau

2019-08-03 09:28:00 Saturday ET

U.S. inflation has become sustainably less than the 2% policy target in recent years.

U.S. inflation has become sustainably less than the 2% policy target in recent years. As Harvard macro economist Robert Barro indicates, U.S. inflation has

+See More