Tuesday 19 Mar 2019 | 04:41 | SYDNEY
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Global Economy

The ebbs and flows of global economic conditions, trade and capital flows, thus have substantial implications for the Australian economy, and Australia’s major regional trading partners. Understanding the broad trends, and identifying emerging challenges and opportunities within the global economy, is central to the work of the International Economy Program at the Lowy Institute.

The highly integrated nature of the modern global economy became especially evident during the 2008 global financial crisis. What began as a localised problem within the residential asset-backed securities market in the United States, eventually brought down major financial firms across the Western world, and ultimately pushed the United States and Europe into a deep and prolonged recession. Although global economic growth has recovered somewhat since 2008, it is still much lower than pre-2008 trends, and the hangover from the crisis has manifested itself in the form of high unemployment levels throughout much of the developed and developing world, as well as an increasing level of inequality both within and between countries.

Understanding the economic rise of Asia, and particularly of the growing middle class within Asia, is also crucial to the broader work of the Lowy Institute. Political economy analysis on major players in the region, chiefly China, India and Indonesia, features heavily in the work of the East Asia Program and the International Security Program.  

If you want my opinion...

G20 summits are a busy time for scholars of global economic governance. There is a surprisingly small pool of us around the world who look at these issues day in, day out, and there are literally thousands of journalists whose minds are either turning to the G20 for the first time, or for the first

Green power has a long way to go

One factor driving energy policies across the world is repeated claims by activists that green energy is gaining substantial market share over its despised fossil fuel competitors. These claims, made for the likes of the Danish, German, Californian and even Chinese grids, are distorting the energy

Making the most of the G20

In this Lowy Institute Analysis, G20 Studies Centre Research Fellow and Project Director Tristram Sainsbury and Research Associate Hannah Wurf argue that the G20 should be at the centre of Australia’s approach to international economic engagement in the years ahead. Photo: Getty Images/VCG

The IMF debates economic neoliberalism

Like all big bureaucracies, the IMF shifts its operational doctrines slowly, rewriting its own history as it does so in order to avoid admitting past errors. We are currently witnessing another episode of this glacial move in relation to two issues: budget austerity and foreign capital flows.

Checking in on China's G20 presidency

China has its first big opportunity to demonstrate global economic leadership when it hosts this year’s G20 meetings. The G20 leaders’ summit will be held in Hangzhou on 4 and 5 September. So far, China looks to be taking the job seriously. When I was in Beijing in March, I was assured that

The Big Short: A reminder of the danger of groupthink

Steve Carrell and Ryan Gosling at The Big Short premiere.             Photo: Barcroft Media via Getty Images I’m looking forward to seeing The Big Short, which traces the stories of some who dared to doubt the US housing market before the global financial crisis. Friends and

IMF: the hard yards on reform are still to come

It finally happened. The US delivered on its long-standing promise to deliver the 2010 IMF quota and governance reforms, spreading a cascade of pre-Christmas cheer across the economic policymaking world. My colleague Mike Callaghan has neatly summarised the implications on US leadership. I want to

Why DFAT is wrong on the opportunity cost of FTAs

Last month the Department of Foreign Affairs and Trade (DFAT) secretary, Peter Varghese, had this to say about Australia’s participation in the global movement toward preferential free trade agreements (FTAs): To not participate would carry with it a significant potential opportunity cost, as

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