The current China shock combines continued supply upgrading with an absorption problem: the decline in property and related investment has reduced domestic demand, but national saving remains very high. The result is a larger savings-investment surplus that spills into net exports.
Elyse Lewin | The Image Bank | Getty Images Married student loan holders — and those soon tying the knot — face important tax and financial decisions, especially after recent changes to the federal lending system. The U.S. Department of Education’s new Repayment Assistance Plan, or RAP, increases the “marriage penalty” for borrowers, said Douglas…
The future of the National Center for Education Statistics (NCES), and the Institute of Education Sciences (IES) that houses it, remains unsettled. There’s broad agreement that the nation must keep collecting education data. Far less settled is whether NCES in its current form is the right agency to do it. The table below shows that…
The state of the AI revolution can be confusing. At times, it can seem as if the latest artificial intelligence models are showing huge capability increases. One example is when two OpenAI models broke out of the lab, accessed the internet, and broke into another AI company. Or, as a Wall Street Journal headline put…
A visitor walks next to the logo of the Indian multinational pharmaceutical company Dr. Reddy’s Laboratories during the Bio Asia 2026 summit in Hyderabad, Telangana, India, on February 18, 2026. (Photo by Jwala Kotesh/NurPhoto via Getty Images) Nurphoto | Nurphoto | Getty Images U.S. President Donald Trump’s proposed tariffs on generic drugs will increase the…
Pro-government supporters stand next to a banner depicting a portrait of Iran’s late Supreme Leader Ayatollah Ali Khamenei during a nightly rally in Tehran, Iran, on July 12, 2026. Morteza Nikoubazl | Nurphoto | Getty Images Iran warned Thursday that it would “crush” key targets in the Middle East if U.S. President Donald Trump’s threats…
Monetary Policy Summary, July 2026 At its meeting ending on 29 July 2026, the Monetary Policy Committee (MPC) voted by a majority of 6–3 to maintain Bank Rate at 3.75%. Three members voted to increase Bank Rate by 0.25 percentage points, to 4%. In response to events in the Middle East, crude and refined energy…
BRUSSELS—The first “China shock” followed China’s entry to the world trading system, when the mobilization of its massive pool of low-cost labor, combined with heavy investment from abroad, caused global manufacturing capacity to shift decisively toward the country. The new China shock is different: it is rooted in domestic technological upgrading and amplified by weak domestic demand.