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Follow the Money

Brad Setser tracks cross-border flows, with a bit of macroeconomics thrown in.

Latest Post

On Designating China as a Currency Manipulator…

Trump’s designation of China as a currency manipulator has triggered a lot of good reporting about China’s current system of currency management, and the legal meaning of a designation. Read More

July 18, 2019

China
The Continuing Chinese Drag on the Global Economy The Continuing Chinese Drag on the Global Economy

Trump's trade policies aren't the only reason for the slowdown in global trade …

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July 16, 2019

Ireland
Finding Ireland in the U.S. Balance of Payments Data ... Finding Ireland in the U.S. Balance of Payments Data ...

Turns out a small and very green island dominates financial flows from "other euro area countries."  Ireland's impact, of course, is a case study in the role that "trade-in-tax" plays in driving global trade and financial flows in today's global economy.

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July 3, 2019

United States
The Trump Tax Reform, As Seen in the U.S. Balance of Payments Data The Trump Tax Reform, As Seen in the U.S. Balance of Payments Data

The international side of the Tax Cuts and Jobs Act was a real reform, not just a straight-forward cut in the rate. It ended deferral, and shifted to a (mostly) territorial tax system. Yet, judging from the balance of payments data, it didn't get rid of the incentive for firms to offshore profits to low-tax jurisdictions. The global minimum is too low—and there are too many incentives to shift tangible assets abroad.

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