bg
Blogs

Follow the Money

Brad Setser tracks cross-border flows, with a bit of macroeconomics thrown in.

Latest Post

Tax Games: Big Pharma Versus Big Tech

American pharmaceutical companies are skilled at using transfer pricing to shift the profit on their U.S. sales out of the United States. That is why the United States' trade deficit in pharmaceuticals is now bigger than the United States' trade surplus in aircraft. Read More

February 11, 2020

Puerto Rico
What Exactly is in the New Agreement Between Puerto Rico's Board and its Creditors? What Exactly is in the New Agreement Between Puerto Rico's Board and its Creditors?

How much tax supported debt will Puerto Rico be left with if the Board's most recent proposal is accepted by the courts?

Read More

January 31, 2020

China
Lessons From Phase One of the Trade War With China Lessons From Phase One of the Trade War With China

With the phase one trade deal signed—and with China now promising (somewhat credibly in my view) to raise its imports of agriculture and energy above their pre-trade war levels and (less credibly) promising to raise its imports of U.S. manufactures—it is now possible look back at how China decided to respond to Trump’s tariff pressure.

Read More

January 26, 2020

Economics
Leprechaun Adjusted Euro Area GDP… Leprechaun Adjusted Euro Area GDP…

The entire euro area's economic statistics now need to be adjusted to remove the distortions created by the tax transactions of large multinationals operating in Ireland and the Netherlands. Headline GDP numbers aren't too distorted, but the main components of GDPnet exports and domestic demandhave been contaminated by tax driven transactions that don't reflect real economic activity.

Read More