The Euro Crisis and the Developing Countries
If the crisis in Europe continues to weaken the region’s economy, developing countries will likely be hurt by slower export growth and increased financial instability. […]
Year: 2010
Germany: Europe’s Pride or Europe’s Problem?
Germany, which benefited from the introduction of the euro, should boost its domestic demand to compensate for the deflationary measures taken by other countries in Europe. […]
Europe’s Debt Crisis: More Than a Fiscal Problem
Though headlines label the Euro crisis as one caused by sovereign debt, Europe’s most troubled economies are suffering from not only fiscal profligacy, but also a severe loss of competitiveness. […]
Paradigm Lost: The Euro in Crisis
The Euro crisis, which strikes at the heart of the world’s largest trading block, no longer threatens just Europe. Economies around the globe are already being affected, and the worldwide recovery is at risk. […]
The Euro Crisis Is Bigger Than You Think
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. […]
Managing Capital Flows in the Aftermath of the Global Crisis
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. […]
Italian Fever
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 U.S.’ Eurozone Problem
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. […]
Ireland: From Bubble to Broke
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. […]
EU Plan Must Be Backed Up by Budget Cuts
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. […]