Advanced search Help
Searching for terms: EXACT: "Jackson, James K., 1949-" in: author
Clear all search criteria
Only 2/3! You are seeing results from the Public Collection, not the complete Full Collection. Sign in to search everything (see eligibility).
-
Foreign Investment in U.S. Securities [November 18, 2009]
"Foreign capital inflows are playing an important role in the U.S. economy by bridging the gap between domestic supplies of and demand for capital. In 2008, as the financial crisis and global economic downturn unfolded, foreign investors looked to U.S. Treasury securities as a 'safe haven' investment, while they sharply reduced their net purchases of corporate stocks and bonds. In the first two quarters of 2009, foreign capital inflows dropped sharply, reflecting an increase in savings by households and businesses and a continued decrease in U.S. liabilities to foreigners reported by U.S. banks and securities firms. Foreign investors now hold more than 50% of the publicly held and traded U.S. Treasury securities. The large foreign accumulation of U.S. securities has spurred some observers to argue that this large foreign presence in U.S. financial markets increases the risk of a financial crisis, whether as a result of the uncoordinated actions of market participants or by a coordinated withdrawal from U.S. financial markets by foreign investors for economic or political reasons. […] This report relies on a comprehensive set of data on capital flows, represented by purchases and sales of U.S. government securities and U.S. and foreign corporate stocks, bonds, into and out of the United States, that is reported by the Treasury Department on a monthly basis."
Library of Congress. Congressional Research Service
Jackson, James K., 1949-
2009-11-18
-
Foreign Investment, CFIUS, and Homeland Security: An Overview [November 5, 2009]
"The President is generally seen as exercising broad discretionary authority over developing and implementing U.S. direct investment policy, including the authority to suspend or block investments that 'threaten to impair the national security.' Congress is also directly involved in formulating the scope and direction of U.S. foreign investment policy, and some Members are urging the President to be more aggressive in blocking certain types of foreign investments. Such confrontations reflect vastly different philosophical and political views between members of Congress and between Congress and the Administration over the role foreign investment plays in the economy and the role that economic activities should play in the context of U.S. national security policy. In July 2007, Congress asserted its own role in making and conducting foreign investment policy when it adopted and the President signed P.L. 110-49, the Foreign Investment and National Security Act of 2007. This law broadens Congress's oversight role, and it explicitly includes the areas of homeland security and critical infrastructure as separately identifiable components of national security that the President must consider when evaluating the national security implications of a foreign investment transaction. The act may well draw Congress into a greater dialogue, and possibly greater conflict, with the Administration over efforts to define the limits of the broad rubric of national economic security."
Library of Congress. Congressional Research Service
Jackson, James K., 1949-
2009-11-05
-
Foreign Direct Investment in the United States: An Economic Analysis [November 5, 2009]
"Foreign direct investment in the United States declined sharply after 2000, when a record $300 billion was invested in U.S. businesses and real estate. [Note: The United States defines foreign direct investment as the ownership or control, directly or indirectly, by one foreign person (individual, branch, partnership, association, government, etc.) of 10% or more of the voting securities of an incorporated U.S. business enterprise or an equivalent interest in an unincorporated U.S. business enterprise. {…}] In 2008, according to Department of Commerce data, foreigners invested $325 billion. Foreign direct investments are highly sought after by many state and local governments that are struggling to create additional jobs in their localities. While some in Congress encourage such investment to offset the perceived negative economic effects of U.S. firms investing abroad, others are concerned about foreign acquisitions of U.S. firms that are considered essential to U.S. national and economic security."
Library of Congress. Congressional Research Service
Jackson, James K., 1949-
2009-11-05
-
Foreign Direct Investment in the United States: An Economic Analysis [Updaed August 15, 2008]
"Foreign direct investment in the United States declined sharply after 2000, when a record $300 billion was invested in U.S. businesses and real estate. In 2007, according to Department of Commerce data, foreigners invested $237 billion. Foreign direct investments are highly sought after by many State and local governments that are struggling to create additional jobs in their localities. While some in Congress encourage such investment to offset the perceived negative economic effects of U.S. firms investing abroad, others are concerned about foreign acquisitions of U.S. firms that are considered essential to U.S. national and economic security. This report will be updated as events warrant."
Library of Congress. Congressional Research Service
Jackson, James K., 1949-
2008-08-15
-
Foreign Direct Investment in the United States: An Economic Analysis [May 17, 2013]
"Foreign direct investment in the United States has rebounded slowly after falling from the $310 billion recorded in 2008, a record surpassed only by the $320 billion invested in 2000 in U.S. businesses and real estate. (Note: The United States defines foreign direct investment as the ownership or control, directly or indirectly, by one foreign person [individual, branch, partnership, association, government, etc.] of 10% or more of the voting securities of an incorporated U.S. business enterprise or an equivalent interest in an unincorporated U.S. business enterprise (15 CFR [Code of Federal Regulations] §806.15 [a][1]). In 2011, according to U.S. Department of Commerce data, foreigners invested $234 billion in U.S. businesses and real estate. Foreign direct investments are highly sought after by many state and local governments that are struggling to create additional jobs in their localities. While some in Congress encourage such investment to offset the perceived negative economic effects of U.S. firms investing abroad, others are concerned about foreign acquisitions of U.S. firms that are considered essential to U.S. national and economic security."
Library of Congress. Congressional Research Service
Jackson, James K., 1949-
2013-05-17
-
European Capital Markets Union [March 11, 2015]
From the Document: "On February 18, 2015, the European Commission released a draft proposal for a Capital Markets Union (CMU) to complement its current efforts to create a Banking Union. The CMU is intended to strengthen capital markets in the 28-member European Union (EU) in order to provide a viable alternative to the current bank-centered funding model commonly used by European firms. The Banking Union is distinct from the CMU because it is intended to break the link between private bank failures and government debts; it also is intended to provide stability to the financial system in ways that will support the CMU. The 2008-2009 financial crisis and the European sovereign debt crisis of 2010-2012 continue to hamper prospects for economic recovery in Europe; new investments by European firms continue to lag behind the levels reached prior to the financial crisis and bank lending to firms remains sluggish. Currently, EU financial markets are characterized by a lack of standardization in important financial products and resistance at the national level to ceding sovereignty over domestic financial institutions to the EU. While some of these impediments may be overcome by the measures envisioned in the CMU, others likely will continue to fragment EU financial markets for some time to come."
Library of Congress. Congressional Research Service
Jackson, James K., 1949-
2015-03-11
-
Swiss National Bank's Recent Currency Actions [February 11, 2015]
"In what has been characterized as one of the most significant currency decisions in decades, on January 15, 2015, the Swiss National Bank (SNB) removed without any public warning the cap it had maintained on the foreign exchange value of the Swiss franc relative to the euro. The move surprised international currency traders, who acted swiftly by acquiring francs, sharply increasing the value of the franc against the dollar and the euro […]. Following the announcement, the Swiss stock market dropped by more than 13% and the franc rose by more than 30% against the euro, before settling to a one day appreciation of about 15%. The SNB also set the official interest rate at negative 0.75% to discourage capital inflows and relieve pressure on the franc. By January 16, 2015, the Swiss franc had increased in value from 1.2 francs per euro to par value (one Swiss franc per one euro), but has depreciated slightly since. Similarly, the Swiss franc appreciated against the dollar, and the dollar appreciated against the euro, rising from nearly $1.19 per euro on January 15, 2015, to about $1.13 per euro by the end of the month. In response, the SNB intervened in the foreign exchange markets by spending nearly $65 billion to acquire eurodenominated assets to blunt the appreciation of the franc. According to a triennial survey conducted by the Bank for International Settlements (BIS), the franc is the sixth most heavily traded currency in global foreign exchange markets."
Library of Congress. Congressional Research Service
Jackson, James K., 1949-
2015-02-11
-
Committee on Foreign Investment in the United States (CFIUS) [January 2, 2014]
"The Committee on Foreign Investment in the United States (CFIUS) is comprised of nine members, two ex officio members, and other members as appointed by the President representing major departments and agencies within the federal executive branch. While the group generally has operated in relative obscurity, the proposed acquisition of commercial operations at six U.S. ports by Dubai Ports World in 2006 placed the group's operations under intense scrutiny by Members of Congress and the public. Prompted by this case, some Members of the 109th and 110th Congresses questioned the ability of Congress to exercise its oversight responsibilities given the general view that CFIUS's operations lack transparency. Other Members revisited concerns about the linkage between national security and the role of foreign investment in the U.S. economy. Some Members of Congress and others argued that the nation's security and economic concerns have changed since the September 11, 2001, terrorist attacks and that these concerns were not being reflected sufficiently in the Committee's deliberations. In addition, anecdotal evidence seemed to indicate that the CFIUS process was not market neutral. Instead, a CFIUS investigation of an investment transaction may have been perceived by some firms and by some in the financial markets as a negative factor that added to uncertainty and may have spurred firms to engage in behavior that may not have been optimal for the economy as a whole."
Library of Congress. Congressional Research Service
Jackson, James K., 1949-
2014-01-02
-
Financing the U.S. Trade Deficit [December 23, 2013]
"The U.S. merchandise trade deficit is a part of the overall U.S. balance of payments, a summary statement of all economic transactions between the residents of the United States and the rest of the world, during a given period of time. Some Members of Congress and other observers have grown concerned over the magnitude of the U.S. merchandise trade deficit and the associated increase in U.S. dollar-denominated assets owned by foreigners. International trade recovered from the global financial crisis of 2008-2009 and the subsequent slowdown in global economic activity that reduced global trade flows and, consequently, reduced the size of the U.S. trade deficit. Now, however, U.S. exporters face new challenges with economies in Europe and Asia confronting increased risks of a second phase of slow growth. This report provides an overview of the U.S. balance of payments, an explanation of the broader role of capital flows in the U.S. economy, an explanation of how the country finances its trade deficit or a trade surplus, and the implications for Congress and the country of the large inflows of capital from abroad."
Library of Congress. Congressional Research Service
Jackson, James K., 1949-
2013-12-23
-
Greek Debt Crisis: Overview and Implications for the United States [April 24, 2017]
"Since 2009, Greece has grappled with a serious debt crisis. Most economists believe that Greece's public debt, 180% of Greek gross domestic product (GDP), is unsustainable. The ramifications of the debt have been felt throughout the Greek economy, which contracted by 25% from its pre-crisis level. One in five Greeks is unemployed, with youth unemployment at nearly 50%, and the Greek banking system is unstable. The Greek government has received three financial assistance packages, funded by European creditors and the International Monetary Fund (IMF) in 2010 and 2012, and again by European creditors in 2015. The European Central Bank (ECB) has taken unprecedented policy measures in response to the crisis. Greece concluded the largest debt restructuring with private creditors in history in 2012, in addition to cutting public spending significantly and pledging a host of policy reforms throughout the crisis. […] This report provides a brief overview of the crisis, including negotiations between the Greek government, European creditors, and the IMF. It also discusses potential implications of the crisis for the U.S. economy and U.S.-European cooperation on broader strategic and economic cooperation."
Library of Congress. Congressional Research Service
Nelson, Rebecca M.; Belkin, Paul; Jackson, James K., 1949-
2017-04-24
-
Global Trade Imbalances [September 28, 2018]
"In July 2018, the International Monetary Fund (IMF) released its latest report on global trade imbalances that identifies countries with 'excessive' current account balances and exchange rates that are 'misaligned.' The current account is abroad measure of a country's global economic engagement and is comprised of trade in goods, services, and official flows. The report indicates that 40% to 50% of countries had imbalances that were 'excessive,' and that imbalances of about 3.25% of world GDP--both surpluses and deficits--remained constant in 2017, as indicated in Figure 1. In other words, some countries are saving too much and others are borrowing too much (globally, the combined saving and borrowing nets to zero, including statistical discrepancy). Individuals, businesses, and governments contribute to the saving rate. Advanced economies account for a rising share of the deficit: the United States has the single largest deficit. Other trade specialists argue that extensive cross-border capital flows have reduced the usefulness of the current account as a monitoring device and that policy prescriptions based on current account imbalances--and trade imbalances as the largest component of the current account--may be counterproductive."
Library of Congress. Congressional Research Service
Jackson, James K., 1949-
2018-09-28
-
U.S. Trade Deficit: An Overview [July 18, 2018]
"The trade deficit is the numerical difference between a country's exports and imports of goods and services. The United States has experienced annual trade deficits during most of the post-WWII period. Some observers argue that the trade deficit costs U.S. jobs, is unsustainable, or reflects unfair trade practices by foreign competitors. Most economists contend this mischaracterizes the nature of the trade deficit and the role of trade in the economy. In general, most economists conclude the trade deficit stems largely from U.S. macroeconomic policies and an imbalance between saving and investment in the economy. Economists also conclude that trade creates both economic benefits and costs, but that the long-run net effect on the economy as a whole is positive. At the same time, some workers and firms may experience a disproportionate share of short-term adjustment costs. On March 31, 2017, President Trump issued an Executive Order directing key agencies to prepare a written report within 90 days (not yet published) on significant trade deficits with U.S. trading partners, including a focus on: unfair trade practices; and the impact of the trade deficit on U.S. production, employment, wages, and national security."
Library of Congress. Congressional Research Service
Jackson, James K., 1949-
2018-07-18
-
Global Economy: Is Slower Growth Ahead? [April 5, 2019]
From the Document: "Recent economic forecasts project a mild slowing in global economic growth in 2019, centered mostly in developed economies and Asia, according the International Monetary Fund (IMF) and the Organisation for Economic Co-operation and Development (OECD), as indicated in Table 1. The IMF forecasts global economic growth in 2019 and 2020 of 3.5% and 3.6%, respectively, down about 0.2 percentage points (pp) from previous forecasts. It also forecasts global trade growth of about 4%, and a fall in energy prices of more than 14%. Successive forecasts for global economic growth rates may be lower, based on additional data. The OECD is forecasting that global growth will slow to 3.3% in 2019 and 3.4% in 2020, also a decline of about 0.2 pp from previous projections."
Library of Congress. Congressional Research Service
Jackson, James K., 1949-; Schwarzenberg, Andres B.
2019-04-05
-
Global Economy: Is Slower Growth Ahead? [Updated April 12, 2019]
From the Document: "The U.S. economy, which outperformed other developed economies in 2018 with an estimated 2.9% rate of growth, is projected by the OECD [Organization for Economic Co-operation and Development] and the IMF [International Monetary Fund] to experience a slower growth in 2019 and 2020. Similarly, the Federal Reserve forecasted in March 20, 2019, the U.S. economy would grow by 2.1% in 2019, down from a previous forecast of 2.3%. Some economic indicators suggest the U.S. economy remains comparatively strong, but a deterioration in the economies of major trading partners could negatively affect the U.S. economy and alter these forecasts. Broad financial and economic linkages tie the U.S. and global economies, which means the United States affects and is affected by events in the global economy. These effects are reflected in capital flows, the international exchange value of the dollar, interest rates, and U.S. trade balances."
Library of Congress. Congressional Research Service
Jackson, James K., 1949-; Schwarzenberg, Andres B.
2019-04-12
-
Deadlines, Programs, and Regulations Mandated by FIRRMA [Updated May 2, 2019]
From the Document: "On August 13, 2018, President Trump signed the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) (Subtitle A, Title XVII, P.L. 115-232). Various provisions became effective upon implementation, while interim rules for some provisions became effective on October 11, 2018. Among other items, FIRRMA required the Committee on Foreign Investment in the United States (CFIUS) to meet certain deadlines in programs and reporting and develop new regulations. In addition, in October 2018, the Department of the Treasury published in the Federal Register preliminary rules implementing certain provisions of FIRRMA through a pilot program, which took effect on November 10. FIRRMA's implementation may raise several questions for the 116th Congress, such as the extent to which modernization of CFIUS and its review of foreign direct investment transactions for their national security implications will safeguard U.S. national security interests, particularly those related to strategic competition for leading edge technology."
Library of Congress. Congressional Research Service
Cimino-Isaacs, Cathleen D.; Jackson, James K., 1949-
2019-05-02
-
CFIUS Reform: Foreign Investment National Security Reviews [Updated May 2, 2019]
From the Overview: "Some Members of Congress, the Trump Administration, and some U.S. businesses have raised concerns over the risks to continued U.S. technological leadership to support national defense and economic security due to growing foreign direct investment (FDI), primarily by Chinese firms, in U.S. high-tech companies. On August 13, 2018, President Trump signed into law new rules governing foreign investment national security reviews. Known as the 'Foreign Investment Risk Review Modernization Act (FIRRMA) of 2018' (Title XVII, P.L. 115-232), the legislation amends the current process for the Committee on Foreign Investment in the United States (CFIUS) (under P.L. 110-49) to review, on behalf of the President, the national security implications of FDI in the United States."
Library of Congress. Congressional Research Service
Cimino-Isaacs, Cathleen D.; Jackson, James K., 1949-
2019-05-02
-
Committee on Foreign Investment in the United States [Updated May 2, 2019]
From the Document: "The Committee on Foreign Investment in the United States (CFIUS) is an interagency committee that serves the President in overseeing the national security implications of foreign investment in the economy. It reviews foreign investment transactions to determine if: (1) they threaten to impair the national security; (2) the foreign investor is controlled by a foreign government; or (3) the transaction could affect homeland security or would result in control of any critical infrastructure that could impair the national security. The President has the authority to block proposed or pending foreign investment transactions that threaten to impair the national security."
Library of Congress. Congressional Research Service
Jackson, James K., 1949-
2019-05-02
-
Committee on Foreign Investment in the United States (CFIUS) [Update May 15, 2019]
From the Document: "The Committee on Foreign Investment in the United States (CFIUS) is an interagency body comprised of nine Cabinet members, two ex officio members, and other members as appointed by the President, that assists the President in reviewing the national security aspects of foreign direct investment in the U.S. economy. While the group often operated in relative obscurity, the perceived change in the nation's national security and economic concerns following the September 11, 2001, terrorist attacks and the proposed acquisition of commercial operations at six U.S. ports by Dubai Ports World in 2006 placed CFIUS's review procedures under intense scrutiny by Members of Congress and the public. In 2018, prompted by concerns over Chinese and other foreign investment in U.S. companies with advanced technology, Members of Congress and the Trump Administration enacted the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA), which became effective on November 11, 2018. This measure marked the most comprehensive revision of the foreign investment review process under CFIUS since the previous revision in 2007, the Foreign Investment and National Security Act (FINSA)."
Library of Congress. Congressional Research Service
Jackson, James K., 1949-
2019-05-15
-
International Trade and Finance: Overview and Issues for the 116th Congress [Updated January 28, 2019]
"The U.S. Constitution grants authority to Congress to lay and collect duties and regulate foreign commerce. Congress exercises this authority in numerous ways, including through oversight of trade policy and consideration of legislation to implement trade agreements and authorize trade programs. Policy issues cover areas such as U.S. trade negotiations, U.S. trade and economic relations with specific regions and countries, international institutions focused on trade, tariff and nontariff barriers, worker dislocation due to trade liberalization, enforcement of trade laws and trade agreement commitments, import and export policies, international investment, economic sanctions, and other trade-related functions of the federal government. Congress also has authority over U.S. financial commitments to international financial institutions and oversight responsibilities for trade- and finance-related agencies of the U.S. government."
Library of Congress. Congressional Research Service
Nelson, Rebecca M.; Schwarzenberg, Andres B.; Akhtar, Shayerah Ilias . . .
2019-01-28
-
Committee on Foreign Investment in the United States [Updated February 5, 2019]
From the Document: "The Committee on Foreign Investment in the United States (CFIUS) is an interagency committee that serves the President in overseeing the national security implications of foreign investment in the economy. It reviews foreign investment transactions to determine if: (1) they threaten to impair the national security; (2) the foreign investor is controlled by a foreign government; or (3) the transaction could affect homeland security or would result in control of any critical infrastructure that could impair the national security. The President has the authority to block proposed or pending foreign investment transactions that threaten to impair the national security."
Library of Congress. Congressional Research Service
Jackson, James K., 1949-
2019-02-05
-
Global Economic Effects of COVID-19 [Updated May 15, 2020]
From the Document: "Since the COVID-19 [coronavirus disease 2019] outbreak was first diagnosed, it has spread to over 190 countries and all U.S. states. The pandemic is having a noticeable impact on global economic growth. Estimates so far indicate the virus could trim global economic growth by as much as 2.0% per month if current conditions persist and raise the risks of a global economic recession similar in magnitude to that experienced during the Great Depression of the 1930s. Global trade could also fall by 13% to 32%, depending on the depth and extent of the global economic downturn. The full impact will not be known until the effects of the pandemic peak. This report provides an overview of the global economic costs to date and the response by governments and international institutions to address these effects."
Library of Congress. Congressional Research Service
Jackson, James K., 1949-; Schwarzenberg, Andres B.; Weiss, Martin A. . . .
2020-05-15
-
Global Economic Effects of COVID-19 [Updated May 1, 2020]
From the Summary: "Since the COVID-19 [coronavirus disease 2019] outbreak was first diagnosed, it has spread to over 190 countries and all U.S. states. The pandemic is having a noticeable impact on global economic growth. Estimates so far indicate the virus could trim global economic growth by as much as 2.0% per month if current conditions persist. Global trade could also fall by 13% to 32%, depending on the depth and extent of the global economic downturn. The full impact will not be known until the effects of the pandemic peak. This report provides an overview of the global economic costs to date and the response by governments and international institutions to address these effects."
Library of Congress. Congressional Research Service
Jackson, James K., 1949-; Weiss, Martin A.; Schwarzenberg, Andres B. . . .
2020-05-01
-
Global Economic Effects of COVID-19 [Updated June 4, 2020]
From the Summary: "Since the COVID-19 [coronavirus disease 2019] outbreak was first diagnosed, it has spread to over 190 countries and all U.S. states. The pandemic is having a noticeable impact on global economic growth. Estimates so far indicate the virus could trim global economic growth by as much as 2.0% per month if current conditions persist and raise the risks of a global economic recession similar in magnitude to that experienced during the Great Depression of the 1930s. Global trade could also fall by 13% to 32%, depending on the depth and extent of the global economic downturn. The full impact will not be known until the effects of the pandemic peak. This report provides an overview of the global economic costs to date and the response by governments and international institutions to address these effects."
Library of Congress. Congressional Research Service
Jackson, James K., 1949-; Weiss, Martin A.; Schwarzenberg, Andres B. . . .
2020-06-04
-
Dollar and the U.S. Trade Deficit [Updated December 9, 2020]
From the Overview: "Since taking office, the Trump Administration has used the overall and bilateral U.S. trade deficits as one of its barometers for evaluating the success or failure of the global trading system, U.S. trade policy, and trade agreements. In an effort to reduce the trade deficit and for other policy objectives, the Administration has renegotiated existing trade agreements, withdrawn from or suspended negotiations on other trade agreements, initiated new agreements, and placed tariffs on a range of imports. Previous administrations and Members of Congress, while expressing concern, have not legislated policies specifically to reduce the trade deficit. The Trump Administration also has advocated for depreciating the dollar against other major currencies, reasoning that a weaker dollar would increase U.S. exports and reduce the nation's trade deficit. Additionally, the Administration contends that certain countries are manipulating their currencies to give their exports a price advantage. On February 3, 2020, the Commerce Department issued a rule that allows currency manipulation potentially to be considered as a domestic subsidy under U.S. countervailing duty laws. The International Monetary Fund (IMF) concluded in its July 2020 report on external balances that current accounts and currencies may be under- or over-valued at times, but this largely reflected domestic economic policies. Economists have raised concerns about the broader long-term impact on the U.S. economy of financing trade deficits."
Library of Congress. Congressional Research Service
Jackson, James K., 1949-
2020-12-09
-
Global Economic Effects of COVID-19 [Updated November 5, 2020]
From the Document: "In the months since the COVID-19 [coronavirus disease 2019] outbreak was first diagnosed, it has spread to over 200 countries and all U.S. states. The pandemic has negatively affected global economic growth beyond anything experienced in nearly a century. Estimates so far indicate the virus could reduce global economic growth to an annualized rate of -4.5% to -6.0% in 2020, with a partial recovery of a rate of 2.5% to 5.2% in 2021. However, a resurgence in infectious cases in Europe, the United States, and various developing economies in September and October renewed calls for stringent lockdowns and curfews and could weaken or delay an economic recovery. The economic fallout from the pandemic could also risk continued labor dislocations as a result of lingering high levels of unemployment not experienced since the Great Depression of the 1930s and high levels of debt among developing economies. [...] The full impact will not be known until the effects of the pandemic peak. This report provides an overview of the global economic costs to date and the response by governments and international institutions to address these effects."
Library of Congress. Congressional Research Service
Jackson, James K., 1949-; Nelson, Rebecca M.; Weiss, Martin A. . . .
2020-11-05
-
Global Economic Effects of COVID-19 [Updated December 23, 2020]
From the Summary: "In the months since the COVID-19 [coronavirus disease 2019] outbreak was first diagnosed, it has spread to over 200 countries and all U.S. states. The pandemic has negatively affected global economic growth beyond anything experienced in nearly a century. Estimates so far indicate the virus could reduce global economic growth to an annualized rate of -4.5% to -6.0% in 2020, with a partial recovery of a rate of 2.5% to 5.2% in 2021. Compared with the synchronized nature of the global economic slowdown in the first half of the year, the global economy showed signs of a two-track recovery in the third quarter with developed economies experiencing a nascent recovery, while growth rates in developing economies lagged behind. However, a resurgence in infectious cases in Europe, the United States, and various developing economies since September renewed calls for lockdowns and curfews and threatened to weaken or delay a sustained economic recovery. The economic fallout from the pandemic could risk continued labor dislocations as a result of lingering high levels of unemployment not experienced since the Great Depression of the 1930s and high levels of debt among developing economies. Job losses have been concentrated more intensively in the services sector where workers have been unable to work offsite. The human costs in terms of lives lost will permanently affect global economic growth in addition to the cost of rising levels of poverty, lives upended, careers derailed, and increased social unrest."
Library of Congress. Congressional Research Service
Jackson, James K., 1949-; Weiss, Martin A.; Schwarzenberg, Andres B. . . .
2020-12-23
-
Global Economic Effects of COVID-19 [Updated November 19, 2020]
From the Summary: "In the months since the COVID-19 [coronavirus disease 2019] outbreak was first diagnosed, it has spread to over 200 countries and all U.S. states. The pandemic has negatively affected global economic growth beyond anything experienced in nearly a century. Estimates so far indicate the virus could reduce global economic growth to an annualized rate of -4.5% to -6.0% in 2020. [...] The economic fallout from the pandemic could also risk continued labor dislocations as a result of lingering high levels of unemployment not experienced since the Great Depression of the 1930s and high levels of debt among developing economies. The human costs in terms of lives lost will permanently affect global economic growth in addition to the cost of rising levels of poverty, lives upended, careers derailed, and increased social unrest. Some estimates indicate that 100 million to 110 million people globally could enter extreme poverty as a result of the contraction in the global economy. Global trade could fall by an annual amount of 9.2%, depending on the depth and extent of the global economic downturn, exacting an especially heavy economic toll on trade-dependent developing and emerging economies. The full impact will not be known until the effects of the pandemic peak. This report provides an overview of the global economic costs to date and the response by governments and international institutions to address these effects."
Library of Congress. Congressional Research Service
Jackson, James K., 1949-; Weiss, Martin A.; Schwarzenberg, Andres B. . . .
2020-11-19
-
U.S. Trade Deficit: An Overview [Updated December 9, 2020]
From the Overview: "The trade deficit is the numerical difference between a country's exports and imports of goods and services. The United States has experienced annual trade deficits during most of the post-WWII [World War Two] period. Some observers argue that the trade deficit costs U.S. jobs, is unsustainable, or reflects unfair trade practices by foreign competitors. Most economists contend this mischaracterizes the nature of the trade deficit and the role of trade in the economy. In general, most economists conclude the trade deficit stems largely from U.S. macroeconomic policies and an imbalance between saving and investment in the economy. Economists also conclude that trade creates both economic benefits and costs, but that the long-run net effect on the economy as a whole is positive. At the same time, some workers and firms may experience a disproportionate share of short-term adjustment costs."
Library of Congress. Congressional Research Service
Jackson, James K., 1949-
2020-12-09
-
U.S. Dollar as the World's Dominant Reserve Currency [December 18, 2020]
From the Document: "The U.S. dollar is the world's dominant reserve currency, among other such currencies including the euro, the yen, the pound, the renminbi (RMB), the Canadian dollar, the Swiss franc, and the Australian dollar. A reserve currency is a currency held by central banks in significant quantities. It is widely used to conduct international trade and financial transactions, eliminating the costs of settling transactions involving different currencies. The dollar has functioned as the world's dominant reserve currency since World War II. Today, central banks hold about 60% of their foreign exchange reserves in dollars. About half of international trade is invoiced in dollars, and about half of all international loans and global debt securities are denominated in dollars. In foreign exchange markets, where currencies are traded, dollars are involved in nearly 90% of all transactions. The dollar is the preferred currency for investors during major economic crises, as a 'safe haven' currency. During the global financial crisis of 2008-2009, for example, and amidst the economic turmoil associated with the Coronavirus Disease 2019 pandemic in 2020, investors sought U.S. dollars, expecting the dollar to retain its value. In both crises, the U.S. Federal Reserve adopted extraordinary monetary authorities and currency swap lines with other central banks to provide liquidity and dollars."
Library of Congress. Congressional Research Service
Nelson, Rebecca M.; Jackson, James K., 1949-; Weiss, Martin A.
2020-12-18
-
Section 232 Steel and Aluminum Tariffs: Potential Economic Implications [March 19, 2018]
"Effective March 23, President Trump will apply 25% and 10% tariffs, respectively, on certain steel and aluminum imports, from all countries, excluding Canada and Mexico at least at this time. These tariffs will affect various stakeholders in the U.S. economy, prompting reactions from several Members of Congress, some in support and others voicing concerns. In general, the tariffs would be expected to benefit the domestic steel and aluminum industries, leading to potential expansion in production in those sectors, while potentially negatively affecting consumers and downstream domestic industries (e.g., manufacturing and construction) through higher costs."
Library of Congress. Congressional Research Service
Jackson, James K., 1949-
2018-03-19
