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 […]
Critics of the US Federal Reserve are having a field day with embarrassing revelations of its risk assessments on the eve of the financial crisis. By law, the Fed is required to publish the transcripts of its Federal Open Market Committee (FOMC) meetings with a five-year lag.
As US President Barack Obama begins his second term, he will have to devote much of his attention to figuring out how to get America’s domestic finances in order.
[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.
The Indian economy is coming back.
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 […]
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.
[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.
[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.
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.
[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.
After a hard-fought election campaign, costing well in excess of $2 billion, it seems to many observers that not much has changed in American politics: Barack Obama is still President, the Republicans still control the House of Representatives, and the Democrats still have a majority in the Senate.
[credit provider=”Chessbase”] CAMBRIDGE – As one year of sluggish growth spills into the next, there is growing debate about what to expect over the coming decades. Was the global financial crisis a harsh but transitory setback to advanced-country growth, or did it expose a deeper long-term malaise? Recently, a few […]
[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.
[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 […]
[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.
[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. […]
[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 […]
NEW YORK – The United States Federal Reserve’s decision to undertake a third round of quantitative easing, or QE3, has raised three important questions. Will QE3 jump-start America’s anemic economic growth? Will it lead to a persistent increase in risky assets, especially in US and other global equity markets? Finally, […]
Last January, China’s environmental authorities barely averted the contamination of nearly three million people’s drinking water after a mining company dumped cadmium – a toxic heavy metal used in the manufacture of batteries, paint, solder, and solar cells – into the Longjiang River.
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 […]
[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 […]
[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 […]
With America’s elections less than six weeks away, it is time to think seriously about what will be done afterwards to deal with the nation’s fiscal mess.
The wrong medicine is being applied to America’s economy.
NEW HAVEN – Recent indications of a weakening global economy have led many people to wonder how pervasive poor economic performance will be in the coming years. Are we facing a long global slump, or possibly even a depression?
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 – […]
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 […]
[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 […]
[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.
[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 […]
[credit provider=”Copyright Gensler”] During three decades of favourable global economic conditions, China created an integrated global production system unprecedented in scale and complexity.But now its policymakers must deal with the triple challenges of the unfolding European debt crisis, slow recovery in the United States, and a secular growth slowdown in […]
[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.
[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 […]
[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 […]
Public-opinion polls in the United States indicate a close presidential election in November.
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 […]
The conventional wisdom about the November presidential election in the United States is only partly correct.
[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 […]
[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.
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 […]
[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.
[credit provider=”Bill Pugliano/Getty Images”] While the risk of a disorderly crisis in the eurozone is well recognised, a more sanguine view of the United States has prevailed.For the last three years, the consensus has been that the US economy was on the verge of a robust and self-sustaining recovery that […]
[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, […]
[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 […]
[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, […]
Are America’s great universities still the stalwart custodians of knowledge, leading forces for technological progress, and providers of opportunity that they once were? Or have they become, in part, unscrupulous accomplices to increasingly rapacious economic elites?
[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.
[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 […]
Many, if not all, of the world’s most pressing macroeconomic problems relate to the massive overhang of all forms of debt. In Europe, a toxic combination of public, bank, and external debt in the periphery threatens to unhinge the eurozone.
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 […]
[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 […]
[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 […]
[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 annual meeting of the International Monetary Fund made clear that Europe and the international community remain rudderless when it comes to economic policy.
[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 […]
FRANKFURT – On a recent trip to Germany, I was struck by two distinct narratives. One narrative features a robust German economy with low unemployment, strong finances, and the right competitive position to exploit the most dynamic segments of global demand. The other narrative describes an economy that is encumbered […]
[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 […]
China and the United States are in the grip of major structural changes that both dread will end the Halcyon era when China produced low-cost goods and the US bought them. In particular, many fear that if these changes lead to direct competition between the two countries, only one side […]
[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 […]
The annual spring meetings of the International Monetary Fund and the World Bank have provided a window onto two fundamental trends driving global politics and the world economy. Geopolitics is moving decisively away from a world dominated by Europe and the United States to one with many regional powers but […]
[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 […]
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 […]
Notoriously bearish economist Nouriel Roubini has changed his tune lately.
This post originally appeared at Project Syndicate.
[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 […]
[credit provider=”AP”] The world is currently being shaken by tectonic changes almost too numerous to count: the ongoing economic crisis is accelerating the degradation of international governance and supranational institutions, and both are occurring alongside a massive shift of economic and political power to Asia. Less than a quarter-century after […]
[credit provider=”Daniel Goodman / Business Insider”] This story originally appeared at Project Syndicate. The United States is widely recognised as possessing the deepest, most liquid, and most efficient capital markets in the world. America’s financial system supports efficient capital allocation, economic development, and job creation.
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.
[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.
The world is at a crossroads. Either the global community will join together to fight poverty, resource depletion, and climate change, or it will face a generation of resource wars, political instability, and environmental ruin.
Screenshot, Inside Job
[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 […]
[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 […]
At last, European leaders have revealed their top-secret plan for solving the euro’s crisis. And it is – drum roll – a version of the “Tobin tax,” a levy on financial transactions first suggested in 1972 by the Nobel laureate economist James Tobin.
[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 […]
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, […]
[credit provider=”Hulton Archive /Getty Images”] This post originally appeared at Project Syndicate.It is now increasingly clear that what started in late 2008 is no ordinary economic slump. Almost four years after the beginning of the crisis, developed economies have not managed a sustainable recovery, and even the better-off countries reveal […]
From July 2005 until this past December, China’s renminbi (RMB) appreciated steadily. But then the RMB fell unexpectedly, hitting the bottom of the daily trading band set by the Peoples’ Bank of China (PBoC) for 11 sessions in a row. Though the RMB has since returned to its previous trajectory […]
[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, […]
[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 […]
[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 […]
This is the year of the “Black Water Dragon,” an astrological cycle that indicates change, but with a measure of calm, sensibility, and prudence. The people and governments of Asia certainly hope that this proves to be the case, but uncertainties – from within and without the region – are […]
Europe is now haunted by the specter of debt. All European leaders quail before it. To exorcise the demon, they are putting their economies through the wringer.
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.
[credit provider=”AP”] Last year’s events in Egypt and Tunisia drew the curtain on a tottering old order and delivered much of the Arab world into a long-awaited new era. But what that new era will look like remains very much an open question, given the many challenges that the region’s countries […]
[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 […]
[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 […]
[credit provider=”Ralph Orlowski / Getty”] European political leaders may be about to agree to a fiscal plan which, if implemented, could push Europe into a major depression. To understand why, it is useful to compare how European countries responded to downturns in demand before and after they adopted the euro.Consider […]
Macroeconomic indicators for the United States have been better than expected for the last few months. Job creation has picked up. Indicators for manufacturing and services have improved moderately. Even the housing industry has shown some signs of life. And consumption growth has been relatively resilient.
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 […]
[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 […]
[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 […]
Turkey has over the past few weeks become the spearhead of a joint Western-Arab-Turkish policy aimed at forcing President Bashar al-Assad to cede power in Syria.
[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 […]
[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 […]
[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 […]
[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.
[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 […]
[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 […]