Reaganomics and the world economy

The upswing in the US economy, which has long since surpassed all expectations, has undoubtedly been a great success for the economic policy embarked upon by President Reagan. But has the treatment which has done the USA so much good also been good for the rest of the world? American observers always draw attention to the import boom, whilst overseas commentators are more concerned with the worldwide effects of the USA's very high interest rates.     

The petrodollars and the world economy

The quadrupling of the oil price by the OPEC in 1973 was a poignant event in the post-war development of the world economy. Which measures and mechanisms conduced to the international income redistribution necessitated by the hoisting of the oil prices in the past five years?     

Weaker world economy

Last year's marked slowdown in the world economy, which followed a phase of very rapid expansion, has led to fears that a recessionary climate may be at hand. A key role in this is played by economic trends in the USA. How reliant is the rest of the world on the tractive power of what has up to now been the engine of economic growth? is the drop in oil prices sufficient to stabilise economic activity?     

Upswing in the world economy

The world economy gained distinct momentum last year. Following North America, the forces for growth have now prevailed in Western Europe and the Japanese economy has also picked up. Real gross domestic product in the industrial countries rose faster than expected at 3%. Will this upward trend keep going, as it must to alleviate unemployment?     

The prospects for the international economy

Although the international economy seems to be well on the road to recovery, the question remains as to how much of this recovery is of a short-term cyclical nature and how much an expression of a renewed longer-term trend towards economic growth. Are we merely witnessing an increased utilisation of existing production capacities without a parallel expansion of production capacities themselves? What conditions have to be fulfilled to ensure the latter?     

Delayed recovery of the world economy

The weakness in the world economy, which began in autumn 1990, is lasting longer than expected. While the expansionary forces in Japan and west Germany increasingly lost momentum during the course of last year, the recovery from the recession in North America began to falter again after a short time. Amidst such developments, doubts are being voiced as to whether the global economy is already on the road to recovery. Will 1992 be another weak year?     

The core and periphery of the world economy

This paper reviews three models of foreign trade, including the Heckscher-Ohlin model, the new trade theory based on increasing returns to scale, and the model of economic geography and trade with agglomeration effects. It demonstrates that gravity models perform relatively well for differentiated and non-differentiated products. This result supports Hummels' and Levinsohn's () critique of the new theory foundation of the gravity equation. Furthermore, the bilateral trade relations of peripheral countries are often identified as outliers. This pattern of outliers is consistent with the model of geography and trade.     

The world economy at the crossroads

The dramatic changes presently taking place in the world economic environment involve considerable risks, but at the same time offer significant opportunities which should not be ignored. Some of the major challenges the world economy is facing in the 1990s are discussed in the following article.     

Marked recovery in the world economy

With expansion accelerating strongly since last summer, the world economy has overcome an extended period of weakness. The USA, driven by highly expansive fiscal policies, is once again proving to be an important locomotive for global economic development. The strong fiscal stimulus will diminish sharply this year, however. Can the recovery continue nonetheless? This is of importance for the euro area in particular, where exports have so far been the primary foundation of economic resurgence. Is the substantial appreciation of the euro jeopardising prospects of catching up with the rest of the world?     

Continued growth in the world economy

After the stock market crash in the autumn of 1987 even optimists were predicting a sharp slowdown in the growth of the world economy in 1988. In the event, the GNP of the industrialised countries increased by 4% in real terms last year. What is the outlook for 1989?