A measure of inflation for the members of the Group of 20 was published for the first time today. According to a group of international institutions, the annual rate of inflation was 3.2% in July and fell to 3.0% in August.
Rates fell in many large developing economies such as China, India and Brazil in addition to the U.S. and the EU. Japan and Indonesia are the only countries whose inflation rate increased in August. The member with the lowest inflation rate was Japan at 0.9% and the highest was India at 10.7%.
If inflation rates continue on a downward trend, central banks will find reassurance in keeping their reactive monetary policies from the 2008 financial crisis intact. While the global economy has been recovering, it is feared that the future U.S. budget policy may set it aback.
What are your thoughts on the G-20 inflation rate? Post in the comment section below!
Today, the United States Trade Representative Michael Froman addressed the Transatlantic Trade and Investment Partnership during his stay in Brussels.
“Today, the U.S. and the European Union are each other’s largest economic partners, with $2.6 billion dollars’ worth of goods and services flowing between us each day. We invest nearly $4 trillion in each other’s economies, creating the world’s largest investment relationship. And more than 13 million people owe their jobs to the transatlantic economic relationship. The U.S.-EU economic partnership is second to none.
“But we know that we can do more. We can do more for economic growth. We can do more to create jobs. We can do more to strengthen rules-based trade that supports the entire global trading system.
“And that is precisely why we launched the Transatlantic Trade and Investment Partnership, or T-TIP. Together with the Trans-Pacific Partnership, or TPP, and the work being done at the WTO to negotiate a multilateral Trade Facilitation agreement, a plurilateral Trade in Services Agreement (TISA) and an expansion of the Information Technology Agreement (ITA), we see T-TIP as an opportunity to raise the standards, to introduce new disciplines and ultimately to strengthen the multilateral trading system.
There is more than one United States in the Western Hemisphere. Can you name all three?
Answer in the comment section below. The answer will be revealed at next week’s “Jeopardy!”
Answer to last week’s “Jeopardy!”: Which countries are involved in the TPP? The current members are Singapore, Chile, New Zealand, Brunei, Australia, Peru, Vietnam and the US. Read more about the TPP at: http://www.ustr.gov/sites/default/files/TPPFAQ.pdf
Trade talks between the US and Japan continue today marking the strategic importance of concluding the TPP negotiations before the end of the year. US Trade Representative Michael Froman’s visit to Japan is an attempt for the two nations to jointly commit to the proposed TPP rulings without succumbing to the pressure from local lobbyists.
The Japanese government has vowed to protect tariffs on certain farm products while USTR Froman maintains the US’s goal of the elimination of tariffs.
Due to Japan’s tensions with China and Europe, exports to the US rose 18.4% this past year signifying the vital importance of strong cooperation between the US and Japan.
The bilateral meeting between President Obama and Russian President Vladimir Putin initially scheduled in Moscow in September, before the Group of 20 summit, has been canceled. The cancellation was in retaliation to Russia granting NSA leaker Edward Snowden a year’s asylum in the country last week.
With the Group of 20 summit scheduled in St. Petersburg in September, it remains unclear whether US-Russia relations will have been resolved by then.
What are your thoughts on the matter? Will this disagreement negatively affect the G-20 summit on trade relations? Post your thoughts in the comment section below!