Global briefing: Large firms in small economies/ Small yard, high fence?/ Japan & Argentina/ Windfall taxes/ New Zealand

Insights on five things that matter this week

In this week’s global briefing:

1. Large firms in small economies: Denmark’s recent experience with Novo Nordisk shows the economic contribution that large firms can make to small economies. The large number of large firms in small economies also creates material economic risks.

2. Small yard, high fence? The US imposed additional restrictions on technology investment into China, which will have broader effects on investment flows.  Growing economic and policy challenges in China are also discouraging investment into China.

3. Japan & Argentina: These two economies have long been seen as idiosyncratic.  But even as Japan’s economy normalises (stronger growth, higher inflation), Argentina’s political-induced economic dysfunction is stepping up.

4. Windfall taxes: Governments are reaching for new sources of revenue to fund spending pressures, with increasing use of windfall taxes on energy firms, banks, and others.  The recent Italian experience is not unique.

5. New Zealand: New Zealand ha…