Economic Instability facts/evidence

Question 1

Causes of eco instability (US/Ch

Answer 1

Trump’s trade war on Ch –> tariffs on steel + aluminum in order to prot US NS/jobs + undermine Ch eco aggression

Question 1

Responses to eco inst (US/Ch)

Answer 1

Ch/US = ‘tit for tat’ w/ tariffs
US ^ exports to Ch h/w by 7%
Ch decrease exports to us by 8%

Question 2

Challenges to eco inst (US/Ch)

Answer 2

0.8% decrease in global eco output (start of 2020)
US cont buying iphones etc from Ch b/c X substitute –> lower impact on Ch than desired
Ch X capitulate –> US ^ imports of Ch goods ^8%

Question 3

COVID as cause of eco inst

Answer 3

225 mil jobs X
80 states shut borders (lower trade)
Eco growth fell 3.4-7.6%/$10.3tr
Global trade fell 5.3%

Question 4

Responses to COVID

Answer 4

^ stimulus in states able to do so e.g. Brazil unemp = 13.4% h/w in Japan = 3.3%
Advanced ecos = est to recover by end 2022 h/w emerging = end 2025

Question 5

Challenges to COVID

Answer 5

Long-term eco impacts i.e. from stimulus –> govt debt
Supply < demand –> exacerbated by Ch remaining in lockdown b/c Delta (world’s factory)
^ infl (h/w est by IMF to decrease from 8.7% –> 5.2%) + Ukraine War