Hi there,
This week was moving week for me as I made my way back to the Netherlands. It was good to spend some time with family again, while also finishing up the last essay for the LSE MSc in Management.
Today will be a bit different, with more focus on a larger news story, Pelosi’s visit to Taiwan and the Chinese response. It comes at a time when the US has just passed the CHIPS act, which makes it look like an integrated strategy.
📃 In this Monday Morning Mashup:
⭐Highlight: Mind the CHIPS
🌐Web: Europe’s Train Strategy
👔 Business: Energy in Europe
Have a great week!
⭐Highlight: Mind the CHIPS
The US passed the CHIPS Act this week, a monumental piece of legislation with bipartisan support that aims to rejuvenate US industrial production of semiconductors.
An excellent analysis of the economics & strategy behind CHIPS
Industrial policy starts with semiconductors
The CHIPS Act should be just the beginning
Articles detailing the events
Pelosi expected to visit Taiwan, Taiwanese and US officials say - CNNPolitics
US House Speaker Nancy Pelosi is expected to visit Taiwan as part of her tour of Asia, according to a senior Taiwanese government official and a US official, despite warnings from Biden administration officials, who are worried about China’s response to such a high-profile visit.
China winds down days of military drills around Taiwan after Pelosi visit | Taiwan | The Guardian
Warships sail at close quarters in final hours of exercises as White House calls Beijing’s actions ‘irresponsible’
US allies rattled by China’s aggressive response to Nancy Pelosi’s Taiwan visit
US allies rattled by China’s aggressive response to Nancy Pelosi’s Taiwan visit
🌐Web: Europe’s Train Strategy
A video I came across this week by Wendover productions details the issues with European railways. It goes into detail comparing the economics of air travel with rail travel on the continent and gives an interesting insight into the EU’s strategy to open up the market for competition.
A problem that remains? Cross border rail routes are often very inefficient (not direct enough) and more direct routes are only possible through direct EU involvement (which is politically sensitive).
Europe’s Experiment: Treating Trains Like Planes
👔 Business: Energy in Europe
For the economists in the room: IMF tells Europe to watch out for price controls and instead let consumers pay more for energy, only helping out those who absolutely can’t.
Why? Incentives. The continent is desperately trying to minimize energy usage and the best way to do that is to incentivizes energy users to minimize their usage.
A more controversial suggestion: levying extra taxes on the profits of energy companies to pay for it all.
IMF tells Europe to let consumers bear the brunt of higher bills to encourage energy saving
The IMF warned European governments against intervening in the region’s worsening energy crisis with broad-based financial support.
Have a great week!