Manufacturing in the GCC
Oil has given the Gulf economies a very unique structure, which complicates comparisons to traditional economies. In particular, hydrocarbon income has played a large role in creating labor forces wherein nationals constitute a minority, a rare occurrence.
Economics 101: Greece’s Crisis Is a Cautionary Tale for a GCC Monetary Union
In last week’s Econ 101 column, we learnt that when a government struggles to manage its finances, it will suffer inflation and high interest rates, and that one remedy is to join the currency of a fiscally disciplined country.
Econ 101: What the GCC Can Learn From Euro-zone Economic Reforms
During the euro zone debt crisis, the central authorities took emergency stabilising measures and adopted a series of preventive reforms. To understand them, one has to go back to the Nobel Prize winner Robert Mundell’s theory of optimal currency areas.
A History Lesson for the U.K.’s Free Trade Aims
These are encouraging words for the economy, as global commerce has been a key cause of two centuries of prosperity. But a closer look at the U.K.’s trade policies during the 19th century—and perceptions thereof—confirms the importance of measuring free trade in the correct way, if…
Economics 101: Old Age Also Means Accepting a Fall in Living Standards”
Pensions seem straightforward: governments simply have to devise a system that ensures that people save enough of their income. It is basically that simple when you are dealing with an individual, but when you are organising something at the population level, it is more complicated.
Economics 101: Cultural Bonds Make Strong Case for Single GCC Currency
In 1999, the year in which the European single currency was launched, the Nobel Prize in Economics was awarded to Robert Mundell for his theory of the conditions under which it is desirable for multiple countries to use a unified currency rather than each having their own one.
Between Trump and Clinton, GCC States Prefer Business as Usual
With the election date approaching, GCC states, just like the rest of the world, are closely watching for the next American president. With Clinton and Trump proposing opposing policies, these will have direct impact on GCC states, particularly in the energy and trade sectors.
