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The economics of sanctions: The West can afford to be tough

May 16, 2014
So far the West has chosen a reluctant approach in its attempt to contain Russia’s encroachment in Ukraine, refraining from economically or financially meaningful sanctions. The Ukraine crisis and further sanctions will not be inconsequential for the profile of the European recovery, but when looking at the distribution of costs, it seems that the West can afford to be tough towards Moscow. Obviously, the economic cost would be higher if Russian supply of energy to the West was jeopardized, but this would come at a very high price for Russia itself. [more]

More documents about "International"

145 (121-132)
June 28, 2011
121
The world trade regime has reached an historic crossroads. Conclusion of the Doha Round this year could give global trade a significant boost. If the negotiations break down, in the medium term the international community faces the prospect of a relapse into tit for tat in trade policy. To bring the Doha Round to a successful conclusion political leadership is necessary – in the big emerging markets as well as in the US and EU. The former also stand to reap substantial gains from reciprocal market liberalisation. [more]
June 9, 2011
122
The financial crisis dealt international banking a serious blow. This paper reviews 1) the extent to which financial markets have become global in recent years as well as the damage inflicted on cross-border linkages by the financial crisis, 2) the reasons for the internationalisation process and 3) prospects for international banking in the “new-normal” environment. Apart from market developments, this reflects a new focus in the political and regulatory debate aimed at increasing the – mostly domestic – grip on the banking industry. [more]
June 29, 2010
123
In real life people do not always decide rationally on the basis of established preferences and complete information. Much of their behaviour is caused through their trying to cope with the complexity of the world around them by approximating. As a rule these approximation methods deliver serviceable results, but they often also lead to distorted perceptions and systematic errors. To avoid making flawed decisions, investors and investment consultants should be aware of these effects when assessing financial products, when estimating factors of relevance to investment performance and their own appetite for risk, and when considering their personal investment behaviour. [more]
June 1, 2010
Analyst:
124
The world’s water markets are confronted with major challenges. The increase in the world's population and higher incomes in developing countries and emerging markets are going hand in hand with a rise in demand for food, energy and other goods. This is resulting in increased demand for water. Climate change will amplify many water-related problems and create new ones. We put the annual investment required in the global water sector at about EUR 400-500 bn. Governments will not be able to raise the funding needed on their own. For this reason, we believe it makes sense for governments and the private sector to cooperate more closely. Makers of “water technologies” will have huge sales potential awaiting them in the coming decades. We have used a scoring model to rank the attractiveness of various countries for investments in the water industry. Among the economies that ranked best are many countries from the Middle East, but also the heavily populated countries of China and India as well as the US and Germany. In principle, though, all countries require a substantial amount of investment in the water sector. [more]
May 14, 2010
125
Final direct cost of the crisis for taxpayers may remain below 1% of GDP in most developed countries. This is only a small fraction of original commitments and also much lower than initial gross expenditures. Direct fiscal costs are in the end unlikely to exceed 2% in the US and 1% in Germany, while banking-sector rescue programmes in France and the UK might possibly even return a net gain. [more]
February 12, 2010
127
Well aware that small farmers are key to world food security, agribusiness players are increasingly partnering with them. They are taking practical steps to secure farmers’ financial success in a sustainable way and integrate them into the global food supply chains... [more]
September 21, 2009
128
Production, distribution and access to food are being redefined by new and ongoing forces. Increased scarcity of natural resources, growing demand for food, changing nature of consumption and climate change are posing serious challenges to ensuring food security for the next decades. Still, we believe that the 9 billion of us in 2050 can be fed provided that we make the right decisions. Cross-sectoral innovation is essential, as well as changes to the current systems for producing, distributing and consuming food. Reforms are also crucial in the areas of agricultural support, food aid, trade liberalisation, support regimes for biofuels and intellectual property rights. [more]
July 30, 2009
129
Some years prior to the crisis, abundant global liquidity and investors’ strong risk appetite boosted asset prices to very high levels. The state of the global economy and financial markets deteriorated dramatically when the subprime crisis turned into a full-blown global banking and economic crisis. Central banks around the world were forced to inject extra liquidity to support the banking sector, the credit channel and the overall economy. Despite the presence of global excess liquidity short and medium-term risks to CPI inflation appear to be limited because of low capacity utilisation and rising unemployment. However, excess liquidity could still potentially stoke new asset price bubbles. Central banks are aware of this risk and are at the moment preparing post-crisis exit strategies from their current accommodative monetary policy stance. [more]
June 15, 2009
131
The ongoing global financial crisis, with its historic dimensions, will have a lasting impact on the banking sector. It will become a less "fashionable" and even more heavily regulated industry with greater state involvement, increased investor scrutiny and substantially higher capital levels. This will lead to lower growth, lower profits and lower volatility for banks than during the past few decades – a trend that is exacerbated by the expected lack of major growth drivers, at least for some time. [more]
June 4, 2009
132
Ever since the global financial crisis spilled over to the real economy, the WTO and the World Bank have reported huge increases in protectionist measures, including non-tariff barriers to trade and the abuse of anti-dumping measures, subsidisation of national industries or, very lately, calls to favour domestic products and companies, and restrictions on international capital flows or immigration. These factors threaten to unleash a spiral of protectionism that perhaps may not choke off the global recovery, but it will partly delay its progress. Therefore, shoring up open markets and free trade is the next major challenge in a globally coordinated drive to cope with the crisis. [more]
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