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Longer-term benefits of the Phase One deal

February 25, 2020
The Phase One trade agreement between the US and China is more than a trade war truce and USD200 bn of purchases. It covers a broad range of topics from intellectual property (IP) protection to opening up China's market. Our broad assessment is successful implementation of this trade deal could bring sizable long-term benefits to China and the world economy. [more]

97 (97-97)
November 4, 2013
The current negotiations between CDU/CSU and SPD towards forming a government point to the implementation, for the first time, of a country-wide minimum wage of EUR 8.50 per hour. Empirical evidence suggests that the effect of a minimum wage is particularly toxic when it is brought to a level that is close to the median wage. This would mean higher wages for about 6 m workers (17% of all workers). A minimum wage will certainly impair the employment chances of groups which already have distinctively higher unemployment rates. If society or politicians do not want to accept the distributional effects of the market, this should be dealt with via taxation and transfers and not by interfering with wage setting. [more]