Economics and International Affairs Blog

Friday, June 26, 2026

Smartphones and AI are remaking rural India
https://www.economist.com/asia/2026/06/23/smartphones-and-ai-are-remaking-rural-india
Villages have fallen in love with short-form videos and chatbots.

Global imbalances have little to do with Europe’s industrial woes
https://www.economist.com/leaders/2026/06/25/global-imbalances-have-little-to-do-with-europes-industrial-woes
The EU has forgotten that it, like China, is a surplus economy.

China’s Failed Rebalancing
https://www.project-syndicate.org/commentary/chinese-economy-consumer-led-rebalancing-has-failed-by-stephen-s-roach-2026-06
When China’s leaders first acknowledged the need to rebalance the economy nearly two decades ago, it seemed like a matter of when, not if. But with the household consumption share of Chinese GDP remaining stubbornly low, officials’ promises to boost domestic demand have lost all credibility.

How the EU can respond to second ‘China Shock’

University-for-all harms poor students the most
https://www.economist.com/leaders/2026/06/25/university-for-all-harms-poor-students-the-most
Time for sane standards in higher education.

Students are doing worse than you think
https://www.economist.com/international/2026/06/25/students-are-doing-worse-than-you-think
Some at college or university are testing no better than ten-year-olds.

Who Is the Real Kevin Warsh?
https://www.newyorker.com/news/the-financial-page/who-is-the-real-kevin-warsh
Before the new Fed chairman got the job, he intimated that the central bank could cut interest rates, but last week he assumed the role of an inflation hawk.

What Kevin Warsh can learn from Alan Greenspan

The new Fed chair must learn from his late predecessor’s successes — and avoid his mistakes.

Will AI lower interest rates?

Kevin Warsh is drawing lessons about tech from Alan Greenspan—but selectively.

Welcome to the Luxury City Built by Taiwan’s A.I. Boom
https://www.nytimes.com/2026/06/24/business/taiwan-chips-boom.html
Fortunes, expensive buildings and birthrates are rising in the city at the center of Taiwan’s chip supply chain.

A.I. Riches Fuel Economic Divide in Asia’s Chip Powerhouses
https://www.nytimes.com/2026/06/24/business/taiwan-korea-ai-chips.html
A.I. demand is driving stock market gains and booming exports in South Korea and Taiwan. But the rest of the economy is being left behind.

Turning Latin America’s Resilience into Growth
https://www.project-syndicate.org/commentary/latin-america-caribbean-must-build-strategic-growth-frameworks-by-ilan-goldfajn-and-eduardo-l-yeyati-2026-06
Economic stabilization has been a significant achievement for Latin America and the Caribbean, a region with a long history of financial crises. But these countries need a well-sequenced reform agenda to attract private investment and create the growth engine that will translate hard-won gains into higher living standards.

Developing-Country Risk Is Being Mispriced
https://www.project-syndicate.org/commentary/new-evidence-shows-that-africa-investment-risk-is-lower-than-assumed-by-vera-songwe-and-mahmoud-mohieldin-2026-06
When investors say there are no “bankable” projects in developing economies, they are typically referring less to project quality than to the cost of capital. But the assumptions driving up risk premia are not supported by the evidence, and until this changes, the misallocation of capital will continue to undermine development.