While Portugal’s public finances are healthier than those of Greece, its poor growth prospects, drastic loss of competitiveness, and high public and private debt all make the country vulnerable to the crisis affecting other parts of Europe. […]
Growth in emerging economies has slowed from torrid post-crisis rates, but remains high and will likely mitigate—but not fully compensate for—a sharp slowdown in advanced countries. […]
Private demand is not yet strong enough in advanced countries to compensate for the drag to come from fiscal stimulus withdrawal. Large countries that can afford to delay the withdrawal should do so. […]
Following the financial crisis, advanced countries are weak and recovering unsteadily, implying that capital flows to emerging markets are likely to be volatile in the years ahead. […]
Countries that can afford to continue to spend, including the United States, should not abandon fiscal stimulus until the private sector recovery is clearer. […]
As international integration deepens and the global trading system becomes increasingly more complex, the WTO can take important steps to not only promote trade liberalization, but also to reaffirm its role as the ultimate regulator of global trade. […]
While the G20 is right to concentrate on short-term macroeconomic policy for now, its rhetoric must shift to better reflect reality, and more attention needs to be paid to structural reforms. […]
The problems that led to the crisis in Europe go beyond just fiscal profligacy and will take a long time to correct. Though the euro will likely survive the adjustment, the crisis could still have a profound effect on the global economy. […]
Despite unprecedented support from the European Union and the IMF, the euro crisis that began in Greece has quickly engulfed Europe and now threatens the very future of the euro. […]
The euro crisis is driven primarily by two elements – problematic sovereign debt in Greece, Ireland, Italy, Portugal, and Spain, and fragile European banks. While ballooning public debt may be the clearest manifestation of the euro crisis, its roots go much deeper. […]
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