Search Results
Results 951–1,000
of 1,012 found.
Reversing Europes Renationalization
by George Soros of Project Syndicate,
At the onset of the euro crisis, a eurozone breakup was inconceivable: assets and liabilities were so intermingled that a breakup would have led to an uncontrollable meltdown. But, as the crisis has progressed, the eurozone financial system has been progressively reoriented along national lines.
A Centerless Euro Cannot Hold
by Kenneth Rogoff of Project Syndicate,
Europe may never be an optimum currency area by any standard. But, without further profound political and economic integration which may end up excluding some current eurozone members the euro may not make it even to the end of this decade.
The Hazard of Second Best
The international community appears increasingly intent on settling for second best on two key issues to be discussed this month in global meetings in Washington, DC: the lingering (if currently dormant) European debt crisis, and the selection of the World Banks next president. It is not too late to change course.
Chinas Stability Gambit
Given centuries of turmoil in China, todays leaders will do everything in their power to preserve political, social, and economic stability. That is why they removed Bo Xilai, the powerful Party Secretary of Chongqing, just before a major conference that attacked the economic model that he personified.
Scary Oil
by Nouriel Roubini of Project Syndicate,
Todays fragile global economy faces many risks: the risk of another flare-up of the eurozone crisis; the risk of a worse-than-expected slowdown in China; and the risk that the US economy's recovery fizzles (again). But no risk is more serious than that posed by a further spike in oil prices.
Jeremy Lin and the Political Economy of Superstars
by Kenneth Rogoff of Project Syndicate,
High salaries for athletes and movie stars are easily accepted by the public. So why, if a financial trader or a corporate boss is paid a fortune, does the public suspect that he or she must be undeserving or, worse, a thief.
Asias Take on Austerity
With Europe on the brink of recession and recovery in the US finally getting some traction, the case for fiscal consolidation appears increasingly weak. But the case becomes stronger when one considers Asian countries' path from crisis in the late 1990's to astounding growth and prosperity today.
Too Big to Jail
by Simon Johnson of Project Syndicate,
Among the fundamental principles of any functioning judicial system is the following: Dont lie to a judge or falsify documents submitted to a court, or you will go to jail. These are serious criminal offenses, but apparently not if you are the heart of Americas financial system.
The Upticks Downside
by Nouriel Roubini of Project Syndicate,
Since late last year, a series of positive developments has boosted investor confidence and led to a sharp rally in risky assets, starting with global equities and commodities. But at least four downside risks are likely to materialize this year, undermining global growth and negatively affecting investor confidence and market valuations of risky assets.
Europes Tobin Tax Distraction
European leaders have revealed their top-secret plan for solving the euros crisis: a version of the Tobin tax, a levy on financial transactions first suggested in 1972. The only problem is that the tax was intended to solve an entirely different problem from those that afflict Europe today.
Capturing the ECB
There are several explanations for the ECBs insistence on a "voluntary" restructuring of Greece's sovereign debt, none of which speaks well for the institution. Indeed, as we have seen elsewhere, institutions that are not democratically accountable tend to be captured by special interests.
Coronary Capitalism
by Kenneth Rogoff of Project Syndicate,
Just as the financial industry caused a near-meltdown of the global economy in 2008, the food industry has facilitated the explosion of obesity around the world. In both cases, the links to broader problems with contemporary Western capitalism have become impossible to ignore.
A Crisis in Two Narratives
by Raghuram Rajan of Project Syndicate,
With the worlds industrial democracies in crisis, two competing narratives of its sources and appropriate remedies are emerging. For better or worse, the narrative that persuades these countries governments and publics will determine their future and that of the global economy.
New Year, Same Crisis
by George Soros of Project Syndicate,
The measures introduced by the European Central Bank last December 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, half a solution is not enough.
The Libertarian and the Lobbyists
by Simon Johnson of Project Syndicate,
Among the Republican candidates still vying to challenge Barack Obama in Novembers US presidential election, Ron Paul stands out for arguing consistently that government is the problem, not the answer, with regard to banking. But the real problem with financial regulation, a new study shows, is lobbying.
Egypts Unfinished Revolution Will Succeed
A year ago, as the World Economic Forum convened in Davos, Egyptians of all ages and religions took to the streets and, in just 18 days of relatively peaceful protests, removed a regime that had ruled over them with an iron fist for 30 years. Today, their revolution is, unfortunately, incomplete and imperfect, but make no mistake: Egyptians will finish what they started.
Repairing the Global Plumbing
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. Fortunately, it is not too late to build broader pipes that compliment and replace the damaged infrastructure.
Does Austerity Promote Economic Growth?
by Robert Shiller of Project Syndicate,
Policymakers cannot afford to wait decades for economists to figure out definitively how government austerity affects growth. But, judging by the evidence that we have, austerity programs in Europe and elsewhere appear likely to yield disappointing results.
The Perils of 2012
The pragmatic commitment to growth that one sees in Asia and other emerging markets today stands in contrast to the Wests misguided policies, which, driven by ideology and vested interests, almost seem to reflect a commitment not to grow. As a result, global economic rebalancing is likely to accelerate, almost inevitably giving rise to political tensions.
Europes Vicious Spirals
While 2011 was supposed to be the year when European leaders finally got a grip on events, the eurozones problems went from bad to worse. The problem is not just that Europe faces a sovereign-debt crisis, but also that it faces a growth crisis, which worsens the debt problem.
Rethinking the Growth Imperative
by Kenneth Rogoff of Project Syndicate,
Modern macroeconomics often seems to treat rapid and stable economic growth as the be-all and end-all of policy. But, while that is the message from graduate classrooms to central-bank boardrooms to newspapers front pages, is it true?
The New International Economic Disorder
A new economic order is taking shape in front of our eyes, as the old Western powers and the emerging worlds major new players converge. But the forces driving this convergence are not those that generations of economists envisaged when they pointed out the inadequacy of the old order.
Austerity and the Modern Banker
by Simon Johnson of Project Syndicate,
Santa Claus came early this year for four former executives of Washington Mutual (WaMu), a large US bank that failed in fall 2008. The Federal Deposit Insurance Corporation (FDIC) had brought a lawsuit against the four, actions that included taking huge financial risks while knowing that the real estate market was in a bubble. The FDIC sought to recover $900 million, but the executives have just settled for $64 million, almost all of which will be paid by their insurers; their out-of-pockets costs are estimated at just $400,000.
Fragile and Unbalanced in 2012
by Nouriel Roubini of Project Syndicate,
The outlook for the global economy in 2012 is clear, but it isnt pretty: recession in Europe, anemic growth at best in the US, and a sharp slowdown in China and in most emerging-market economies. Restoring robust growth is difficult enough without the ever-present specter of deleveraging and a severe shortage of policy ammunition.
What Can Save the Euro?
It is increasingly evident that Europes political leaders, for all their commitment to the euros survival, do not have a good grasp of what is required to make the single currency work. Public-sector cutbacks today do not solve the problem of yesterdays profligacy; they simply push economies into deeper recessions.
Is Modern Capitalism Sustainable?
by Kenneth Rogoff of Project Syndicate,
In principle, none of capitalisms problems is insurmountable, and economists have offered a variety of market-based solutions. Will capitalism be a victim of its own success in producing massive wealth? For now, as fashionable as the topic of capitalisms demise might be, the possibility seems remote. Nevertheless, as pollution, financial instability, health problems, and inequality continue to grow, and as political systems remain paralyzed, capitalisms future might not seem so secure in a few decades as it seems now.
Another Asian Wake-Up Call
For the second time in three years, global economic recovery is at risk, with the crisis in 2008, triggered by subprime crisis made in America, now followed by Europe's sovereign-debt crisis. The alarm bells should be ringing loud and clear across Asia an export-led region that cannot afford to ignore repeated shocks to its two largest sources of external demand.
Does Europe Have a Korean Option?
by Simon Johnson of Project Syndicate,
On the surface, at least, the situation in the eurozone today and South Korea in the fall of 1997 look very different. Both are cases of severe economic crisis, to be sure. But the eurozones problems stem from high levels of government debt, while South Korea faced massive capital flight and a collapsing currency and almost all of the debt was in the corporate sector. Nevertheless, the eurozone could learn from the experience of South Korea, which came through its crisis more quickly than anyone expected, combining sensible reforms with a rapid recovery.
The Neuroeconomics Revolution
Economics is at the start of a revolution that is traceable to an unexpected source: medical schools and their research facilities. Neuroscience the science of how the brain, that physical organ inside ones head, really works is beginning to change the way we think about how people make decisions. These findings will inevitably change the way we think about how economies function. In short, we are at the dawn of neuroeconomics. Efforts to link neuroscience to economics have occurred mostly in just the last few years, and the growth of neuroeconomics is still in its early stages.
The Anatomy of Global Economic Uncertainty
The sense of uncertainty prevailing in the West is palpable, and rightly so. People are worried about their futures, with a record number now fearing that their children may end up worse off than them. Unfortunately, things will become even more unsettling in the months ahead.
Down with the Eurozone
by Nouriel Roubini of Project Syndicate,
The eurozone crisis seems to be reaching its climax, with Greece on the verge of default and an inglorious exit from the monetary union, and now Italy on the verge of losing market access. But the eurozone's problems are much deeper. They are structural, and they severely affect at least four other economies: Ireland, Portugal, Cyprus, and Spain. With Italy too big to fail, too big to save, the endgame for the eurozone has begun. Sequential, coercive restructurings of debt will come first, and then exits from the monetary union that will eventually lead to disintegration.
The Globalization of Protest
With globalization and modern technology, social movements can transcend borders as rapidly as ideas can. And social protest has found fertile ground everywhere: a sense that the system has failed, and the conviction that even in a democracy, the electoral process will not set things right at least not without strong pressure from the street.
A Gravity Test for the Euro
by Kenneth Rogoff of Project Syndicate,
Although I appreciate that exchange rates are never easy to explain, I find todays relatively robust value for the euro mysterious. Do the gnomes of currency markets seriously believe that the eurozone governments latest comprehensive package to save the euro will hold up? The new plan relies on a questionable mix of dubious financial-engineering gimmicks and vague promises of modest Asian funding. I can think of one very good reason why the euro needs to fall, and six not-so-convincing reasons why it should remain stable or appreciate. Lets begin with why the euro needs to fall.
America at Stall Speed?
Judging from the skittishness of both markets and consensus expectations, the United States economic prospects are confusing. One day, the country is on the brink of a double-dip recession; the next, it is on the verge of a turbo-charged recovery, powered by resilient consumers and US multinationals starting to deploy, at long last, their massive cash reserves. In the process, markets take investors on a wild rollercoaster ride, with the European crisis (riddled with even more confusion and volatility) serving to aggravate their queasiness.
The Instability of Inequality
by Nouriel Roubini of Project Syndicate,
This year has witnessed a global wave of social and political turmoil and instability, with masses of people pouring into the real and virtual streets. While these have no unified theme, they express in different ways the serious concerns of the worlds working and middle classes about their prospects in the face of the growing concentration of power among economic, financial, and political elites. Any economic model that does not properly address inequality will eventually face a crisis of legitimacy.
A Standby Program for the Eurozone
by Raghuram Rajan of Project Syndicate,
With luck, Italy may soon get a credible government of national unity, Spain will obtain a new government in November with a mandate for change, and Greece will do enough to avoid roiling the markets. But none of this can be relied upon. So, what needs to be done? First, eurozone banks have to be recapitalized. Second, enough funding must be available to meet Italys and Spains needs over the next year or so if their market access dries up. And, third, Greece, now the sickest man of Europe, must be treated in a way that does not spread the infection to the other countries.
To Cure the Economy
As the economic slump that began in 2007 persists, the question on everyones minds is obvious: Why? The prescription for what ails the global economy follows directly from the diagnosis: strong government expenditures, aimed at facilitating restructuring, promoting energy conservation, and reducing inequality, and a reform of the global financial system that creates an alternative to the buildup of reserves. Eventually, the worlds leaders and the voters who elect them will come to recognize this. But how much pain will we have to bear in the meantime?
The Wrong Tax for Europe
by Kenneth Rogoff of Project Syndicate,
Europe is already in pickle, so why not add more vinegar? That seems to be the thinking behind the European Commissions proposed financial transactions tax (FTT)-the Commissions latest response to Europes festering growth and financing problems. Ordinary Europeans have to pay value-added tax on most of the goods and services that they buy. so why not tax purchases of stocks, bonds, and all kinds of derivatives? Surely, such a tax will hit wealthy individuals and financial firms far more than anyone else, and, besides, it will raise a ton of revenue.
Chinas Landing Soft not Hard
China has no choice but to move quickly to implement the pro-consumption initiatives of its recently enacted 12th Five-Year Plan. Strategic transition is what modern China is all about. Thats what happened 30 years ago, when economic reform began. And it needs to happen again today. For China, a soft landing will provide a window of opportunity to press ahead with the formidable task of increasingly urgent economic rebalancing.
The Great Debt Scare
Most confidence indices today are based on survey questions that ask respondents to assess the economy today or in the near future. But what today's debt fears in Europe and the US really reflect and what is holding back consumption and investment is widespread anxiety about long-term economic prospects.
Countering the Contagious West
Despite their strong fundamentals, emerging countries still feel vulnerable in the face of the Wests economic weakness, policy shortfalls, and political paralysis. Moreover, they know from experience that there are no easy and immediate solutions to the Wests debt overhang and structural impediments to growth. And they have no illusions about the potential for effective global policy coordination. In such circumstances policymakers in emerging markets will eschew boldness for prudence. They will hope for a short winter for the global economy, but they will plan and position for a long one.
How to Prevent a Depression
by Nouriel Roubini of Project Syndicate,
The latest economic data suggests that recession is returning to most advanced economies, with financial markets now reaching levels of stress unseen since the collapse of Lehman Brothers. The risks of an economic and financial crisis even worse than the previous one-now involving not just the private sector, but also near-insolvent sovereigns-are significant. So, what can be done to minimize the fallout of another economic contraction and prevent a depression and financial meltdown? The best way to avoid the risk of repeating such a sequence is bold and aggressive global policy action now.
Thinking the Unthinkable in Europe
by George Soros of Project Syndicate,
Having in sight a solution to the eurozones sovereign-debt crisis would be a source of relief for financial markets. Even so, because any new treatys terms will inevitably be dictated by Germany, a severe economic slowdown would be almost certain. That might induce a further change of attitude in Germany, in turn allowing the adoption of counter-cyclical policies. At that point, growth in much of the eurozone could resume.
Europe on the Verge of a Political Breakdown
Europe is again on the precipice. The most recent Greek rescue, put in place barely six weeks ago, is on the brink of collapse. The crisis of confidence has infected the eurozones big countries. The euros survival and, indeed, that of the European Union hang in the balance. European leaders have responded with a cacophony of proposals for restoring confidence. There are several ways to recapitalize Europes weak banks. If these proposals have one thing in common, it is that they all fail to address the eurozones immediate problems.
Results 951–1,000
of 1,012 found.
