Though the eight newest EU are committed to eventually adopting the euro, they all already suffer from the problems that dragged Greece into crisis, suggesting that none of them are ready to join the Euro area yet. […]
Capital flows are rebounding to emerging economies, prompted by the strength and speed of their economic recovery. These flows could surge in coming years, perhaps setting the stage for the development of another large bubble in emerging markets. […]
Italy has navigated the economic crisis better than many of its European neighbors, but this should not create complacency among policy makers. Unless urgent corrections are made, Italy’s economy will evolve in ways that are bound to lead to a painful crisis. […]
The economies of the United States and Europe are tightly linked via trade, investment, and financial markets. If the Euro crisis spreads, U.S. banking and export sectors will suffer. […]
Despite the fact that Ireland’s economy sustained a boom both before and after the introduction of the euro, Ireland faces the same problems that are crippling much of Europe: lost competitiveness and an unsustainable government debt trajectory. […]
While the recently announced Eurozone support package suggests the possibility of a new era of fiscal coordination across Europe, it will only succeed if the countries in need of aid undertake far-reaching policy changes. […]
Europe’s massive rescue package has bought time for its most troubled economies, but, unless these countries move forward with necessary—and deeply unpopular—reforms, the newly available money will do little to save them. […]
Comments on MIGA political risk […]
Whether or not Spain can overcome the challenges it now faces—which stem from the same source as those in Greece—depends on how quickly and forcefully the government responds. […]
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