Taboos, Italy, and the Euro
Given the severity of the challenges facing Italy today—stagnating productivity, slow growth, and rising debt—and the country’s systemic importance, it is not unreasonable to ask whether Italy should stay in the euro. […]
Year: 2011
The Great Recession and the Rich-Country Trap
With emerging markets surging ahead and the United States and other wealthy countries engulfed in a crisis that shows no sign of ending, it is worth asking if rich countries are in a growth trap—and should perhaps seek advice from their developing neighbors. […]
Making Europeans
Since bailouts alone are failing to end the European debt crisis, a new approach that pacifies markets, strengthens banks, mitigates moral hazard, and is politically acceptable to both core and periphery countries is urgently needed. […]
Can the Euro be Saved?
Europe has little time left to address the underlying weaknesses in its monetary union in order to prevent economic collapse. […]
Currency wars
Currency wars are a pressing concern in the international arena. This column introduces a new online book that argues the real cause of today’s currency tensions are misguided domestic policies in the world’s major economies. The cure is not to overhaul the exchange-rate system – which has worked well during a global crisis. The solution lies in incremental change by the US, the EU, and China. […]
The Rise of Emerging Markets Requires a New WTO
World trade is expanding rapidly, helping forge modern industrial sectors in emerging economies. Managing this evolving global trading system requires new leadership from the World Trade Organization. […]
How Will It End?
The current Euro crisis will either cause the European monetary union to collapse, leading to sovereign defaults across Europe, or it will force European countries to take real steps toward fiscal union and tighter economic coordination. […]
Germany’s Choice
Leaders in Germany and other eurozone countries are starting to recognize that dealing with the euro’s problems requires not just austerity and structural reforms in the periphery but also a much closer fiscal union. […]
Why China Needs a Global Conscience
The transformation of China into an economic powerhouse will fundamentally alter Beijing’s relationship with the global economy and require far-reaching changes in the global institutional architecture. […]
Is the World Economy Headed for a Double Dip?
Though the global recovery is weakening, the world economy is not likely to head back into recession unless the sovereign debt crisis in Italy and Spain intensifies. […]