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Alicia García-Herrero and Guntram B. Wolff



Articles by Alicia García-Herrero and Guntram B. Wolff

China Has an Unfair Advantage in the EU Market. What Can Be Done to Level the Playing Field?

July 28, 2020

This article has originally been published in Brink News. The dominance of Chinese state-owned enterprises in China’s domestic market is giving them unfair advantages in the European Union single market as well. The EU Commission recently released a series of recommendations for leveling the playing field regarding foreign subsidies. Unfortunately, while useful, these ideas are unlikely to […]

The dominance of Chinese state-owned enterprises in China’s domestic market is giving them unfair advantages in the European Union single market as well. The EU Commission recently released a series of recommendations for leveling the playing field regarding foreign subsidies. Unfortunately, while useful, these ideas are unlikely to be enough to deal with the issue.
Given the urgency of the matter,

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A letter to Santa, the G7

March 17, 2020

The G7 should set an example of international cooperation and come out with a strong signal of unity and support for the euro-area. Only then will the cost of the crisis be temporary and manageable. This is our letter to Santa. I hope at least some -if not all -of these wishes can be fulfilled.

Since the coronavirus outbreak became a pandemic, markets have plummeted. Global risk aversion has spiked, safe assets have becoming hugely expensive and the dollar – and gold – are kings. Against such a backdrop, central banks have scrambled to react, as quickly as possible, to the market deluge. But action is not enough and all eyes are on the G7 meeting.
Today, international cooperation is even more necessary than in 2008 for a number of reasons. First, the shock to the real economy is bound to

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Brazil can learn from Spain: don’t delay adjustment

May 11, 2016

Brazil’s economic crisis has much in common with Spain’s crisis from 2009 – 2012. The IMF and the global community must work together to ensure a stabilisation programme for Brazil before it is too late, as euro-area countries did with Spain. The credibility of policy adjustment is key.

Brazil’s economy and politics have long been playing with fire. Now the rest of the world risks getting burnt by waiting for the crisis to be addressed domestically. The country could learn a lot from Spain’s 2012 rescue package from the International Monetary Fund.
Brazil’s is one of the largest emerging market economies, close to the size of Germany’s. Its GDP is $3.2tn in purchasing power parity terms. It is the largest economy in South America, with huge knock-on effects on other countries in the region. It is also very financially open, making up nearly 7 per cent of the MSCI Emerging Markets equities index; its weight is even bigger in EM debt markets.
Brazil’s systemic importance has already been shown by the impact of its 2001 crisis on other EMs. Given this, one wonders where the IMF and G20 have been during the past few months. Brazil has not even been mentioned in any recent G20 communiqués. As for the IMF, it has offered only low-key warning signals. Yet Brazil’s economy is really crying out for an IMF bailout.

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