At the semiannual meeting between the International Monetary Fund and World Bank in Washington DC, countries suspect US to be retreating from “global economic leadership” at the most crucial point. Many believe United States government is too divided and is unable to maintain its economic power compared to the past. The greatest of infights came from efforts to carry out a 12-nation Pacific trade agreement. The infights included his own party, trade unions, environmentalists and liberal activists. Another great concern is the economic growth in Asia. Obama recognized the “fastest-growing markets” and hopes to set up rules in order to compete with China. In addition, bolstering IMF and other institutions have been difficult for the West and have consequences in confrontations such as with Russia over Ukraine.
I wrote another blog about the Asian Infrastructure Investment bank. This bank has influeced policy makers and marked “the moment the United States lost its role as the underwriter of the global economic system.” Other opinions include waiting to see, that there is too much that can be predicted at the moment.
1 comment:
I felt like it was most likely due to overreaction to the Scottish referendum and now it makes the currency unstable. Scotland knows leaving the UK and establishing their own currency would do more harm than good which was why the votes went from high acceptance of the independence to rejecting it last year. It resulted in a kneejerk reaction that destabilize the Pound and the effect was still lingering till this day. I think the Pound will still fluctuate, but over the long run it should not be that serious.
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