Markets

The World Economy Is Pushing The Planet Beyond Safe Operating Conditions

ADDIS ABABA – What does the future hold for the global economy? Will living standards rise worldwide, as today’s poor countries leapfrog technologies to catch up with richer countries? Or will prosperity slip through our fingers as greed and corruption lead us to deplete vital resources and degrade the natural […]
The World Economy Is Pushing The Planet Beyond Safe Operating Conditions
Markets

Germany Is Delusional About The Effects Of Moving Its Gold

[credit provider=”Stringer / AFP”] Germany’s gold is on the move.For the first time since official gold transactions became more transparent, the Bundesbank has given notice that a significant portion of its holdings will be transferred home from France and the United States.
Germany Is Delusional About The Effects Of Moving Its Gold
Markets

Here Are The Big Risks That Lie Ahead For The World In 2013

NEW YORK – The global economy this year will exhibit some similarities with the conditions that prevailed in 2012. No surprise there: we face another year in which global growth will average about 3%, but with a multi-speed recovery – a sub-par, below-trend annual rate of 1% in the advanced […]
Here Are The Big Risks That Lie Ahead For The World In 2013
News

President Obama Needs A New Metaphor For His Second Term

As US President Barack Obama begins his second term, he needs a simple way to express his vision and policies for the economy – a metaphor around which support for his policies might crystallize, thereby boosting his administration’s political effectiveness.
President Obama Needs A New Metaphor For His Second Term
Markets

STIGLITZ: We’re Overlooking The Global Economy’s Long-Term Problems

[credit provider=”AP Images” url=”http://www.apimages.com/OneUp.aspx?st=k&kw=stiglitz&showact=results&sort=relevance&intv=None&sh=10&kwstyle=and&adte=1325437686&pagez=60&cfasstyle=AND&rids=c0f3a6ba3e114c318ea11ba90dede106&dbm=PY2009&page=1&xslt=1&mediatype=Photo”] In the shadow of the euro crisis and America’s fiscal cliff, it is easy to ignore the global economy’s long-term problems.But, while we focus on immediate concerns, they continue to fester, and we overlook them at our peril.
STIGLITZ: We’re Overlooking The Global Economy’s Long-Term Problems
Markets

Japan Is About To Repeat Its Own Mistakes, As Well As The Mistakes Of The US And Europe

[credit provider=”Wikimedia Commons” url=”http://commons.wikimedia.org/wiki/File:Abe_Shinzo_2012.jpg”] The politicization of central banking continues unabated.The resurrection of Shinzo Abe and Japan’s Liberal Democratic Party – pillars of the political system that has left the Japanese economy mired in two lost decades and counting – is just the latest case in point.
Japan Is About To Repeat Its Own Mistakes, As Well As The Mistakes Of The US And Europe
Markets

The Eurozone Has Only Delayed Its Reckoning

NEW YORK – The risks facing the eurozone have been reduced since the summer, when a Greek exit looked imminent and borrowing costs for Spain and Italy reached new and unsustainable heights. But, while financial strains have since eased, economic conditions on the eurozone’s periphery remain shaky.
The Eurozone Has Only Delayed Its Reckoning
Markets

EICHENGREEN: Keep The European Union, Scrap The Euro

[credit provider=”Andreas Rentz/Getty Images”] Europe’s crisis has entered a quiet phase, which is no accident.The current period of relative calm coincides with the approach of Germany’s federal election in 2013, in which the incumbent chancellor, Angela Merkel, will be running as the woman who saved the euro.
EICHENGREEN: Keep The European Union, Scrap The Euro
Markets

Here’s How We Can Avoid A New American Recession

[credit provider=”Spencer Platt/Getty Images”] The United States may be headed for a recession in 2013.Even if the country avoids going over the “fiscal cliff,” a poorly designed political compromise that cuts the deficit too quickly could push an already weak economy into recession.
Here’s How We Can Avoid A New American Recession
News

Here’s The One Thing Petraeus Did Right

[credit provider=”isafmedia via Flikr”] Anne-Marie Slaughter, a former director of policy planning in the US State Department (2009-2011) and a former dean of the Woodrow Wilson School of Public and International Affairs, is Professor of Politics and International Affairs at Princeton University. She is the author of The Idea That […]
Here’s The One Thing Petraeus Did Right
News

That Was The Most Expensive Election In US History, And It Failed The Basic Tests For Democracy

[credit provider=”Facebook/Barack Obama” url=”https://www.facebook.com/photo.php?fbid=10151258859581749&set=pb.6815841748.-2207520000.1352400072&type=3&theatre”] No doubt many people around the world, if not most, breathed a sigh of relief over the re-election of US President Barack Obama.A BBC World service poll of 21 countries found a strong preference for Obama everywhere except Pakistan.
That Was The Most Expensive Election In US History, And It Failed The Basic Tests For Democracy
News

Joseph Stiglitz: Americans Aren’t The Only Ones With A Lot At Stake Tomorrow

[credit provider=”Wikimedia/Steve Jurvetson and Wikimedia/Gage Skidmore”] Most people around the world will not be able to vote in the United States’s upcoming presidential election, even though they have a great deal at stake in the result.Overwhelmingly, non-US citizens favour Barack Obama’s re-election over a victory for his challenger, Mitt Romney. […]
Joseph Stiglitz: Americans Aren’t The Only Ones With A Lot At Stake Tomorrow
Markets

There’s Another Financial Crisis That’s Just As Dangerous As The Sovereign Debt Crisis

[credit provider=”Bloomberg TV” url=”http://www.bloomberg.com/video/el-erian-we-may-be-looking-at-an-equities-bubble-ajvp9NkWQDGFp8HZjKoGiA.html”] NEWPORT BEACH – Two variants of financial crisis continue to wreak havoc on Western economies, fueling joblessness and poverty: the one that we read about regularly in newspapers, involving governments around the world; and a less visible one at the level of small and medium-size businesses […]
There’s Another Financial Crisis That’s Just As Dangerous As The Sovereign Debt Crisis
News

The Natural-Resource Curse Has Now Struck Chile

Chile today produces one-third of the world’s lithium – used in batteries that power everything from computers to cars – and has great potential to expand that share. But, while everyone agrees that Chile should realise its potential as a global supplier of lithium, the local debate on how to […]
The Natural-Resource Curse Has Now Struck Chile
News

Israel’s Concern About Nuclear Iran Has Led To A Crisis Of Confidence With The US

[credit provider=”AP” url=”http://www.apimages.com/OneUp.aspx?st=k&kw=netanyahu%20obama&showact=results&sort=relevance&intv=None&sh=10&kwstyle=and&adte=1305836858&pagez=60&cfasstyle=AND&rids=a56fc1b086b24b93957593c76aef7fb6&dbm=PY2009&page=1&xslt=1&mediatype=Photo”] Israel’s concern about the specter of a nuclear Iran has now degenerated into a crisis of confidence concerning the United States.Prime Minister Binyamin Netanyahu has embarked on a campaign to force President Barack Obama to set a red line that Iran must not cross, lest it risk […]
Israel’s Concern About Nuclear Iran Has Led To A Crisis Of Confidence With The US
News

The Rest Of The World’s Currencies Feel Threatened By QE3

[credit provider=”bradipo on flickr” url=”http://www.flickr.com/photos/bradipo/1435739708/”] The United States Federal Reserve’s recent decision to launch a third round of “quantitative easing” has revived accusations by Brazil’s finance minister, Guido Mantega, that the US has unleashed a “currency war.” In emerging-market countries that are already struggling with the impact of rapid currency […]
The Rest Of The World’s Currencies Feel Threatened By QE3
Markets

ROUBINI: The Global Economy Will Soon Crash Into A Brick Wall

PARIS – Financial markets have rallied since July on the hope that the global economic and geopolitical outlook will not worsen, or, if it does, that central banks stand ready to backstop economies and markets with additional rounds of liquidity provision and quantitative easing. So, not only has good – […]
ROUBINI: The Global Economy Will Soon Crash Into A Brick Wall
Markets

Germany Must Lead The Creation Of A Political Union Or Leave The Euro

NEW YORK – Europe has been in a financial crisis since 2007. When the bankruptcy of Lehman Brothers endangered the credit of financial institutions, private credit was replaced by the credit of the state, revealing an unrecognised flaw in the euro. By transferring their right to print money to the […]
Germany Must Lead The Creation Of A Political Union Or Leave The Euro
Markets

ROGOFF: Financial Regulation Is An Arms Race That The Government Can Not Win

[credit provider=”Wikimedia Commons” url=”http://en.wikipedia.org/wiki/File:Kenneth_Rogoff.jpg”] CAMBRIDGE – People often ask if regulators and legislators have fixed the flaws in the financial system that took the world to the brink of a second Great Depression. The short answer is no.Yes, the chances of an immediate repeat of the acute financial meltdown of […]
ROGOFF: Financial Regulation Is An Arms Race That The Government Can Not Win
Markets

Former ECB President Trichet Explains His Plan To Save Europe

[credit provider=”Wikimedia Commons” url=”http://commons.wikimedia.org/wiki/File:Trichet_SGS.png”] The creation of Europe’s economic and monetary union is unique in the history of sovereign states.The eurozone constitutes a “society of states” of a completely new type, one that transcends the traditional Westphalian concept of sovereignty.
Former ECB President Trichet Explains His Plan To Save Europe
Markets

Stephen Roach Has A Rational Explanation For All Of China’s Ghost Cities

[credit provider=”Bloomberg TV” url=”http://www.bloomberg.com/video/stephen-roach-on-fed-stimulus-measures-economy-pnzb~IYmSjGsnHWTYHGBeQ.html”] China has received much flak for building “ghost cities” and “bridges to nowhere.” Recent reports show that construction in Ordos, the most famous Chinese ghost city has stalled.Analysts argue that the prevalence of ghost cities proves that such infrastructure investment can’t be sustained and can’t continue to […]
Stephen Roach Has A Rational Explanation For All Of China’s Ghost Cities
News

Scientists Want To Make It Clear That Global Warming Did Not Cause This Year’s Drought

[credit provider=”Scott Olson/Getty Images” url=”http://www.gettyimages.com/detail/news-photo/marion-kujawa-looks-over-a-pond-he-uses-to-water-the-cattle-news-photo/148452702″] “Everyone knows” that you should drink eight glasses of water a day.After all, this is the advice of a multitude of health writers, not to mention authorities like Britain’s National Health Service.
Scientists Want To Make It Clear That Global Warming Did Not Cause This Year’s Drought
Markets

Calm Down Everybody, Youth Unemployment In Europe Isn’t As Scary As It Looks

[credit provider=”Wikimedia Commons” url=”http://commons.wikimedia.org/wiki/File:La_Tomatina_%2825.08.2010%29_-_Spain,_Bu%C3%B1ol_03.jpg”] Economists worldwide need better ways to measure economic activity.Relying on GDP growth rates to assess economic health, almost all of them missed the warning signs of the 2008 financial crisis, including an $8 trillion real-estate bubble in the United States, as well as property bubbles in […]
Calm Down Everybody, Youth Unemployment In Europe Isn’t As Scary As It Looks
Markets

BRICs Can’t Keep The Global Economy Afloat

[credit provider=”Feng Li/Getty Images” url=”http://www.gettyimages.com/detail/news-photo/chinese-worker-assembles-a-hybrid-bus-at-a-factory-of-news-photo/90597027″] A year ago, economic analysts were giddy with optimism about the prospects for economic growth in the developing world.In contrast to the United States and Europe, where the growth outlook looked weak at best, emerging markets were expected to sustain their strong performance from the […]
BRICs Can’t Keep The Global Economy Afloat
Markets

These 3 Things Keep Pushing Interest Rates Lower And Lower

CAMBRIDGE – How long can today’s record-low, major-currency interest rates persist? 10-year interest rates in the United States, the United Kingdom, and Germany have all been hovering around the once unthinkable 1.5% mark. In Japan, the 10-year rate has drifted to below 0.8%. Global investors are apparently willing to accept […]
These 3 Things Keep Pushing Interest Rates Lower And Lower
Markets

J. BRADFORD DELONG: We Haven’t Learned Anything From History’s Long-Term Unemployment Cycles

[credit provider=”WikiMedia Commons” url=”http://commons.wikimedia.org/wiki/File:Destitute_man_vacant_store.gif”] However bad you think the global economy is today in terms of the business cycle, that is only one lens through which to view the world.In terms of global life expectancy, total world wealth, the overall level of technology, growth prospects in emerging economies, and global […]
J. BRADFORD DELONG: We Haven’t Learned Anything From History’s Long-Term Unemployment Cycles
Markets

STEPHEN ROACH: America Can’t Keep Relying On Spending To Drive The Economy

[credit provider=”Wikimedia Commons” url=”http://commons.wikimedia.org/wiki/File:Abandoned_Taco_Johns_in_Pocatello,_ID.jpg”] The American consumer is but a shadow of its former almighty self.Personal consumption in the United States expanded at only a 1.5% annual rate in real (inflation-adjusted) terms in the second quarter of 2012 – and that was no aberration.
STEPHEN ROACH: America Can’t Keep Relying On Spending To Drive The Economy
News

Cities In California Are Declaring Bankruptcy To Avoid Governor Brown’s Tax Increases

While central governments’ fiscal problems plague many economies, a parallel crisis is enveloping many subnational governments around the world. From Spain to China to the United States to Italy, these governments – regions, states, provinces, cities, and towns – face immense fiscal challenges. Higher levels of government are “on the hook” to bail out local insolvent […]
Cities In California Are Declaring Bankruptcy To Avoid Governor Brown’s Tax Increases
News

Asian Americans Aren’t A Model Minority, They’re A Neglected Minority

[credit provider=”Michelle.Hayes via Flickr” url=”http://www.flickr.com/photos/mhayesphotos/5032477954/sizes/l/in/photostream/”] Vishakha N. Desai is President of the Asia Society.The Pew centre’s recent report “The Rise of Asian Americans,” which shows that Asians, not Latinos, comprise the largest group of immigrant arrivals in the United States, took many people by surprise.
Asian Americans Aren’t A Model Minority, They’re A Neglected Minority
Markets

For The First Time Ever, Europe’s Leaders Have Admitted That They Know Austerity Is Not Enough

[credit provider=”Wikimedia Commons” url=”http://commons.wikimedia.org/wiki/File:Industrieruine_Zeitz.JPG”] A rapid and large increase of government debt has been a general phenomenon in the advanced countries since the 2007-09 crisis: for the first time, the average debt/GDP ratio for OECD countries has surpassed 100%.Fiscal consolidation will weigh on growth prospects for two generations to come, […]
For The First Time Ever, Europe’s Leaders Have Admitted That They Know Austerity Is Not Enough
News

Money Is Destroying Scientific Research

[credit provider=”Youtube” url=”http://www.youtube.com/watch?v=2FmOllJNCgU”] Scientific fraud, plagiarism, and ghost writing are increasingly being reported in the news media, creating the impression that misconduct has become a widespread and omnipresent evil in scientific research.But these reports are more an example of sensationalist media latching on to a hot topic than a true […]
Money Is Destroying Scientific Research
News

Ever Wondered Why Europe Never Managed To Create A Business Like Facebook?

[credit provider=”Stephen Chipp/flickr” url=”http://www.flickr.com/photos/stephenchipp/2294005643/”] Is austerity dead? At last month’s G-8 meeting at Camp David, the German-led austerity program for the eurozone’s troubled southern members ran up against substantial resistance.Likewise, France’s recent presidential election bolstered those who argue that Europe must grow its way out of its debt-heavy public sector, […]
Ever Wondered Why Europe Never Managed To Create A Business Like Facebook?
Markets

Stories About India’s Slowdown Are Way Overblown

[credit provider=”Lee Warren/Gallo Images/Getty Images” url=”http://www.gettyimages.com/detail/news-photo/an-india-fan-waves-the-national-flag-outside-of-the-stadium-news-photo/109952166″] To hear some people tell it, the bloom is off the Indian economic rose. Hailed until recently as the next big success story, the country has lately been assailed by bad news.
Stories About India’s Slowdown Are Way Overblown
Markets

GEORGE SOROS: How Europe Accidentally Became The German Empire

[credit provider=”via Human Events ” url=”http://www.google.com/imgres?imgurl=http://www.bloggernews.net/wp/wp-content/uploads/2007/09/g_soros.jpg&imgrefurl=http://www.humanevents.com/article.php%3Fid%3D42674&h=338&w=450&sz=42&tbnid=43F6KaaxUmNsiM:&tbnh=90&tbnw=120&prev=/search%3Fq%3Dgeorge%2Bsoros%26tbm%3Disch%26tbo%3Du&zoom=1&q=george+soros&docid=uKY3YMvNzhKLGM&hl=en&sa=X&ei=MRJ6Tp_IKMPh0QHjt-27Ag&ved=0CFgQ9QEwBA&dur=957″] It is now clear that the main cause of the euro crisis is the member states’ surrender of their right to print money to the European Central Bank. They did not understand just what that surrender entailed – and neither did the European authorities.When […]
GEORGE SOROS: How Europe Accidentally Became The German Empire
Markets

ROBERT SHILLER: My Advice To Finance Graduates

At this time of year, at graduation ceremonies in America and elsewhere, those about to leave university often hear some final words of advice before receiving their diplomas. To those interested in pursuing careers in finance – or related careers in insurance, accounting, auditing, law, or corporate management – I […]
ROBERT SHILLER: My Advice To Finance Graduates
News

Why China Will Never Replace The United States As The World’s Lone Superpower

[credit provider=”(Photo by Mass Communication Specialist 3rd Class Adam K. Thomas/U.S. Navy via Getty Images) “] LONDON – Is China poised to become the world’s next superpower? This question is increasingly asked as China’s economic growth surges ahead at more than 8% a year, while the developed world remains mired […]
Why China Will Never Replace The United States As The World’s Lone Superpower
Markets

It’s Time For Greece To Leave

[credit provider=”how will i ever | Flickr” url=”http://www.flickr.com/photos/murplejane/3107945609/in/photostream/”] NEW YORK – The Greek euro tragedy is reaching its final act: it is clear that either this year or next, Greece is highly likely to default on its debt and exit the eurozone.Postponing the exit after the June election with a […]
It’s Time For Greece To Leave
News

This Year’s Political Scandals Show There’s No Such Thing As Meritocracy In China

[credit provider=”digsim on flickr” url=”http://www.flickr.com/photos/digsim/6679693433/”] Political scandals sometimes perform a valuable function in cleansing governments. They destroy the political careers of individuals of dubious character. More importantly, they can debunk political myths central to the legitimacy of some regimes.That appears to be the case with the Bo Xilai affair in […]
This Year’s Political Scandals Show There’s No Such Thing As Meritocracy In China
Markets

KENNETH ROGOFF: Why A More Flexible Renminbi Still Matters

[credit provider=”AP Images” url=”http://www.apimages.com/OneUp.aspx?st=k&kw=China%20renminbi&showact=results&sort=relevance&intv=None&sh=10&kwstyle=and&adte=1317992985&pagez=60&cfasstyle=AND&rids=de485e4ea2e5da11af9f0014c2589dfb&dbm=PY2003&page=1&xslt=1&mediatype=Photo”] One of the most notable macroeconomic developments in recent years has been the sharp drop in China’s current-account surplus.The International Monetary Fund is now forecasting a 2012 surplus of just 2.3% of GDP, down from a pre-crisis peak of 10.1% of GDP in 2007, owing largely […]
KENNETH ROGOFF: Why A More Flexible Renminbi Still Matters
Markets

STEPHEN ROACH: The US Is Fixated On The Renminbi, When It Should Be Pushing For More Market Access

[credit provider=”mitbbsnews2 via flickr” url=”http://www.flickr.com/photos/[email protected]/5176534629/”] NEW YORK – For seven years, the United States has allowed its fixation on the renminbi’s exchange rate to deflect attention from far more important issues in its economic relationship with China. The upcoming Strategic and Economic Dialogue between the US and China is an […]
STEPHEN ROACH: The US Is Fixated On The Renminbi, When It Should Be Pushing For More Market Access
News

JOSCHKA FISCHER: China Needs Democracy And Basic Human Rights Before It Can Become A World Power

[credit provider=”AP Images” url=”http://www.apimages.com/OneUp.aspx?st=k&kw=china%20army&showact=results&sort=relevance&intv=None&sh=10&kwstyle=and&adte=1333033282&pagez=60&cfasstyle=AND&rids=1f34c82a851444df88a9e0a9d823af84&dbm=PY2007&page=1&xslt=1&mediatype=Photo”] There can be little reasonable doubt today that the People’s Republic of China will dominate the world of the 20-first century.The country’s rapid economic growth, strategic potential, huge internal market, and enormous investment in infrastructure, education, and research and development, as well as its massive military […]
JOSCHKA FISCHER: China Needs Democracy And Basic Human Rights Before It Can Become A World Power
Markets

Are Multinational Corporations Really Abandoning The US?

[credit provider=”Wikimedia Commons” url=”http://commons.wikimedia.org/wiki/File:Electronics_factory_in_Shenzhen.jpg”] BERKELEY – At a recent conference in Washington, DC, former Treasury Secretary Larry Summers said that US policymakers should focus on productive activities that take place in the United States and employ American workers, not on corporations that are legally registered in the US but locate […]
Are Multinational Corporations Really Abandoning The US?
Markets

Massive Bond Purchases By The ECB Are The Worst Kind Of Bailout

Bailouts appear to be the medicine du jour prescribed across Europe for debt-stricken nations. Large-scale purchases of government bonds by the ECB also seem to be the only focus of creditors and political leaders. But the true key to resolving the eurozone crisis actually lies in properly structured reforms in […]
Massive Bond Purchases By The ECB Are The Worst Kind Of Bailout
Lifestyle

Why Airlines Should Start Charging Overweight Customers By The Pound

[credit provider=”Flight Global” url=”http://www.flightglobal.com/blogs/unusual-attitude/2009/11/passenger-creates-big-debate-a.html”] We are getting fatter. In Australia, the United States, and many other countries, it has become commonplace to see people so fat that they waddle rather than walk. The rise in obesity is steepest in the developed world, but it is occurring in middle-income and poor […]
Why Airlines Should Start Charging Overweight Customers By The Pound
Markets

The Asian Financial Crisis Proves That Austerity Can Work

The austerity debate was the topic du jour at this year’s World Economic Forum in Davos. With good reason. Europe is slipping back into recession just when recovery in the United States is finally getting some traction.  That has undermined the case for fiscal consolidation, which is so heavily favoured in Europe.
The Asian Financial Crisis Proves That Austerity Can Work
News

Weimar Germany Was Destabilized By Unpopular Austerity Measures, Not Hyper-Inflation

[credit provider=”Magyar Nemzeti Múzeum Történeti Fényképtára, Budapest” url=”http://mek.oszk.hu/01900/01906/html/index1433.html”] Germany’s position in Europe looks increasingly peculiar and vulnerable.In the chaos of German unification in 1990, when Germany’s neighbours were terrified of the new giant, then-Chancellor Helmut Kohl promised a European Germany, not a German Europe.
Weimar Germany Was Destabilized By Unpopular Austerity Measures, Not Hyper-Inflation
News

Why It’s Over For France’s Nicolas Sarkozy

[credit provider=”Mario Tama / Getty”] And the next French President will be…the Socialist Party’s candidate François Hollande. A month ago, any prediction uttered with such certainty would have sounded imprudent, if not foolish. Uncertainty prevailed.Four candidates dominated the competition, and no one would have dared to predict which two will […]
Why It’s Over For France’s Nicolas Sarkozy
News

Nixon May Have Unleashed China, But The Country Is Still Backwards In Many Ways

[credit provider=”Nixon Presidential Materials”] When US President Richard Nixon embarked on his historic trip to China 40 years ago, he could not have imagined what his gamble would unleash. The immediate diplomatic impact, of course, was to reshape Eurasia’s geopolitical balance and put the Soviet Union on the defensive. But […]
Nixon May Have Unleashed China, But The Country Is Still Backwards In Many Ways
Markets

Systematic And Widespread Regulatory Failures Are Choking Our Arteries As Well As Our Economy

[credit provider=”Wikimedia Commons” url=”http://en.wikipedia.org/wiki/File:Marriner_S._Eccles_Federal_Reserve_Board_Building.jpg”] A systematic and broad failure of regulation is the elephant in the room when it comes to reforming today’s Western capitalism. Yes, much has been said about the unhealthy political-regulatory-financial dynamic that led to the global economy’s heart attack in 2008 (initiating what Carmen Reinhart and […]
Systematic And Widespread Regulatory Failures Are Choking Our Arteries As Well As Our Economy
Markets

Europe Is Managing The Symptoms Of The Crisis When They Should Be Finding A Cure

The measures introduced by the European Central Bank last December, especially the Long Term Refinancing Operation (LTRO), have relieved the liquidity problems of European banks, but have not cured the financing disadvantage of the highly indebted member states. Since high-risk premiums on government bonds endanger the capital adequacy of banks, […]
Europe Is Managing The Symptoms Of The Crisis When They Should Be Finding A Cure
Markets

Capital Is Flowing From Poor Countries To Rich Countries

[credit provider=”iStockphoto”] At first, it seems difficult to grasp: global capital is flowing from poor to rich countries. Emerging-market countries run current-account surpluses, while advanced economies have deficits. One would expect fast-growing, capital-scarce (and young) developing countries to be importing capital from the rest of world to finance consumption and investment. So, […]
Capital Is Flowing From Poor Countries To Rich Countries
Markets

We Need To Get Better At Globalization, Or The Discontented Masses Will Put An End To It

[credit provider=”Wikimedia Commons” url=”http://en.wikipedia.org/wiki/Burma”] This post originally appeared at Project Syndicate. The World Economic Forum’s annual gathering is normally little more than a toast to the benefits of increasing global GDP, trade, and investment. But this year’s meeting comes at a time when economic expansion can no longer be taken for […]
We Need To Get Better At Globalization, Or The Discontented Masses Will Put An End To It
News

David Cameron Never Wanted To Reach An Agreement On Europe, Or Fix The EU

[credit provider=”Flickr | The Prime Minister’s Office” url=”http://www.flickr.com/photos/number10gov/4739720064/”] When people and countries negotiate, they often talk about their interests as though they were the only matters that could elicit agreement. In casting his veto at the European Union’s December summit in Brussels, British Prime Minister David Cameron said, “What is […]
David Cameron Never Wanted To Reach An Agreement On Europe, Or Fix The EU
Markets

Here’s Why Emerging Markets Could Be In For A Tough 2012

Emerging markets have performed amazingly well over the last seven years. In many cases, they have far outperformed the advanced industrialized countries in terms of economic growth, debt-to-GDP ratios, countercyclical fiscal policy, and assessments by ratings agencies and financial markets.
Here’s Why Emerging Markets Could Be In For A Tough 2012
Markets

Three Years After The Global Financial Crisis Began, The World Is Still A Mess

[credit provider=”Flickr | World Economic Forum” url=”http://www.flickr.com/photos/worldeconomicforum/3011845379/”] More than three years after the global financial crisis, the world still has a nasty plumbing problem. Credit pipes remain clogged, and only central banks are working to clear them. But their ability to do so is waning, posing yet another set of […]
Three Years After The Global Financial Crisis Began, The World Is Still A Mess
Markets

Government Austerity Programs Hurt Economic Growth

[credit provider=”AP”] In his classic Fable of the Bees: or, Private Vices, Publick Benefits (1724), Bernard Mandeville, the Dutch-born British philosopher and satirist, described – in verse – a prosperous society (of bees) that suddenly chose to make a virtue of austerity, dropping all excess expenditure and extravagant consumption. What then happened?The […]
Government Austerity Programs Hurt Economic Growth
Markets

JOSEPH STIGLITZ: Last Year We Lost Hope, This Year Will Be Worse

The year 2011 will be remembered as the time when many ever-optimistic Americans began to give up hope. President John F. Kennedy once said that a rising tide lifts all boats. But now, in the receding tide, Americans are beginning to see not only that those with taller masts had […]
JOSEPH STIGLITZ: Last Year We Lost Hope, This Year Will Be Worse
Markets

Germany Needs To Stop Flying Solo If It Wants To Resolve The Euro Crisis

[credit provider=”Flickr | DonkeyHotey” url=”http://www.flickr.com/photos/donkeyhotey/6499863609/”] While the world anxiously awaits the climax of the eurozone drama, its leaders’ behaviour resembles the political equivalent of what physicists call “Brownian motion,” with officials bouncing randomly from one crucial bilateral consultation and vital European summit to the next. The impact of make-or-break declarations […]
Germany Needs To Stop Flying Solo If It Wants To Resolve The Euro Crisis
Markets

BARRY EICHENGREEN: Europe Is Stuck In Two Vicious Downward Spirals

[credit provider=”Gordon Wrigley on Flickr” url=”http://www.flickr.com/photos/tolomea/4852616645/lightbox/#/photos/tolomea/4852616645/”] The euro crisis shows no signs of letting up. While 2011 was supposed to be the year when European leaders finally got a grip on events, the eurozone’s problems went from bad to worse. What had been a Greek crisis became a southern European […]
BARRY EICHENGREEN: Europe Is Stuck In Two Vicious Downward Spirals
Markets

There’s A Revolution Coming In Global Finance

[credit provider=”Wikipedia” url=”http://upload.wikimedia.org/wikipedia/commons/4/4e/Prise_de_la_Bastille.jpg”] HONG KONG – In March 2011, the catastrophic earthquake, tsunami, and nuclear disaster that hit Japan halted production of key components on which many global supply chains depend. The sudden disruption of these essential materials from the production process forced a reassessment of how these supply chains […]
There’s A Revolution Coming In Global Finance
Markets

HAROLD JAMES: Face It, The Global Economy Is A Riot Of Failing Economic Models

[credit provider=”Knoxville Museum of Art via Flickr” url=”http://www.flickr.com/photos/[email protected]/4205383550/”] The protracted financial and economic crisis discredited first the American model of capitalism, and then the European version. Now it looks as if the Asian approach may take some knocks, too. Coming after the failure of state socialism, does this mean that […]
HAROLD JAMES: Face It, The Global Economy Is A Riot Of Failing Economic Models
News

Don’t Expect What Happened In Egypt To Happen In Russia

[credit provider=”Harry Engels / Getty Images”] Russia is not Egypt. And Moscow is not on the eve of revolution as Cairo was less than a year ago. Indeed, Russia’s powerful have at their disposal assets that former Egyptian President Hosni Mubarak’s regime lacked.As an energy superpower, Russia can open its […]
Don’t Expect What Happened In Egypt To Happen In Russia
Markets

KENNETH ROGOFF: We Need To Rethink The Emphasis On Rapid Growth

[credit provider=”Institute For NEw Economic Thinking” url=”http://ineteconomics.org/net/video/playlist/conference/bretton-woods/B”] Modern macroeconomics often seems to treat rapid and stable economic growth as the be-all and end-all of policy.That message is echoed in political debates, central-bank boardrooms, and front-page headlines.
KENNETH ROGOFF: We Need To Rethink The Emphasis On Rapid Growth
News

Will 2012 Be Another ‘Year of the Protester’?

[credit provider=”david_shankbone/Flickr” url=”http://www.flickr.com/photos/shankbone/6205707709/sizes/l/in/photostream/”] What does the New Year hold for the global wave of protest that erupted in 2011? Did the surge of anger that began in Tunisia crest in lower Manhattan, or is 2012 likely to see an escalation of the politics of dissent?The answers are alarming but quite […]
Will 2012 Be Another ‘Year of the Protester’?
News

Europe’s Far-Right Are Blaming This Minority For A Financial Crisis Again

[credit provider=”Sean Gallup/Getty”] BUDAPEST – Today, millions of Europeans are afraid and frustrated as they face unemployment, loss of savings and pensions, radically reduced social benefits, and other economic hardships. Their fears are warranted, because the current financial crisis is undermining the very union that was established to heal Europe’s […]
Europe’s Far-Right Are Blaming This Minority For A Financial Crisis Again