International

Global inequality—both across nations and within their borders—has evolved through a tangled interplay of economic, technological, political and environmental forces over the past forty years, with some dynamics narrowing gaps between countries, as seen in China’s rapid expansion and growth across parts of Asia, while others have significantly deepened income and wealth divides within most advanced and many emerging economies; grasping these underlying forces clarifies why resources accumulate among a limited few even as vast populations remain exposed to persistent vulnerability.Key forces shaping the economyStrong returns on capital relative to overall expansion The dynamic underscored by Thomas Piketty—showing that capital…

Inflation does not originate only from domestic demand or wage pressures. Open economies routinely absorb price pressures originating overseas. Imported inflation occurs when increases in the prices of goods and services from other countries, or shifts in exchange rates and global supply conditions, transmit into domestic prices. Understanding the channels, conditions, and policy implications helps businesses, policymakers, and households manage exposure and respond effectively.Main channels of imported inflationExchange rate pass-through: When the domestic currency depreciates, imported goods become costlier, and retailers, manufacturers, and service providers that rely on foreign inputs frequently shift these elevated expenses to consumers, pushing overall inflation…

Relying on a single energy supplier means that a household, business, community, or country obtains most or all of its energy—electricity, natural gas, heating fuel, or critical components for renewable systems—from one source. That source may be a single company, a single foreign country, a single fuel type, or a single supply chain node. Dependence concentrates risk: supply interruptions, price spikes, operational failures, policy shifts, or geopolitical events affecting that supplier can have outsized effects on consumers and systems.Forms of Reliance on a Sole SupplierSingle company or utility: A monopoly or dominant supplier providing electricity, gas, or district heating to…

Global interest rates set by major central banks and reflected in international bond yields shape the cost of money worldwide. That transmission matters for everyday prices—mortgages, rents, food, energy, and consumer credit—even when domestic central banks set local policy. This article explains the transmission channels, gives concrete examples and numbers, and outlines how households, firms, and policymakers experience and respond to global rate changes.Primary routes of transmissionGlobal interest rates help shape local living expenses through a range of interconnected pathways:Exchange rates and import prices: Higher global rates, especially in reserve currencies, attract capital to those currencies. That can depreciate local…