The United States Can be Bolder in Repairing its Finances
Because the U.S. economy is both competitive and flexible, policy makers in the United States can afford to be bold in tackling the country’s large fiscal problem. […]
Month: July 2011
Renminbi Revaluation: Will Other Asian Currencies Follow?
An appreciation of the renminbi is not the catch-all solution some claim it to be. If China were to revalue its currency, a widespread appreciation of Asian currencies would not follow, nor would the U.S. current account deficit benefit. […]
Global Aftershocks of a U.S. Debt Default
While a temporary default is not likely to fundamentally alter the global economic dynamic, the U.S. budget imbalance and uncertainties over whether Washington will address that imbalance are major contributors to international tensions. […]
Egypt in Transition: The Current Economic Situation and the Role of International Assistance
To gain the popular legitimacy needed for a sustained political transition, Egypt’s government will need to show progress on the economic front. What happens in Egypt is pivotal in determining the course of the rest of the region. […]
Egypt’s Democratic Transition: Five Important Myths About the Economy and International Assistance
If the transition in Egypt succeeds and the country overcomes a number of economic obstacles and acquires a democratic, accountable, and efficient form of government, it is likely to become a stabilizing force in a turbulent region. […]
America’s ‘Safe Haven’ Status Cannot Shelter It Indefinitely
If the debt ceiling debate can help Americans begin to confront the country’s fiscal anomalies—beginning with its huge healthcare costs, relatively low taxes, and defense budget—it is to be warmly welcomed. […]
Should Capital Flow to Poor Countries?
Encouraging developing economies to import capital simply because they are poor not only ignores the economic realities surrounding international financial flows but can also be highly destabilizing and dangerous. […]
Emerging Powers and the Global Commons
As emerging markets come to dominate the global economy, no challenge will be more difficult—and few will be more important—than managing the global commons. […]
Exchange Rate Regimes and Protectionism
The international monetary system helped countries liberalize trade and limited protectionism during the Great Recession. But countries with pegged exchange rates remain a threat to trade, especially if the peg is undervalued. […]
The Rise of Emerging Markets Requires a New WTO
The ascendance of emerging economies has altered the fundamentals of international trade, creating an urgent need for the World Trade Organization to play a more proactive and substantive role in this new world. […]