Tidbits

Recently in the FT:

FDI flows to emerging economies nose-dived during the first quarter.

Michael Pettis says that the unsustainability of the US current account deficit implied the unsustainability of the Asian export-driven development model. Unfortunately, policymakers don’t seem to have a transition plan.

Gary Hufbauer and Jeff Schott argue that the United States is undermining the G20 pledge to avoid protectionism because state-level bureaucrats are only spending federal stimulus funds on goods and services provided by US suppliers, violating international procurement agreements.