Insights

Insights

  • Trade wars — it’s all in the game

    13 July 2018

    The period since China’s accession to the WTO in 2001 has been characterised by: falling real rates of interest; rising debt as a share of GDP; and weaker economic growth, particularly across the advanced economies. In this In Depth we explore these developments in the context of an economic game between two heavy-weights: the US and China. We find that, by failing to co-operate, their interactions have driven the global economy to an inefficient, but stable equilibrium, where China exports...