Brussels Summit: The Long War Ahead

October 27, 2011 0

The European leaders’ emergency summit featured plenty of headline-grabbing numbers, but far fewer actual commitments and details. It will not save the eurozone, but it will allow it live on to fight the next battle. […]

Should Capital Flow to Poor Countries?

July 18, 2011 0

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. […]

Exchange Rate Regimes and Protectionism

July 1, 2011 0

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 Capital Flow Conundrum

June 23, 2011 0

The assumption that capital should flow from rich to poor countries is not only overly simplistic, but it also encourages developing economies to attract dangerous capital flows that they do not need and cannot absorb. […]

The Future of the Renminbi as an International Currency

June 2, 2011 0

China is promoting the use of its currency for trade and investment, but this will eventually require China to open its capital account and make its exchange rate more flexible—moves that political considerations may block for years to come. […]

Why Are Reserves So Big?

May 12, 2011 0

The dramatic increase in official foreign exchange reserves in developing countries has prompted accusations of protectionism, but developed countries are equally to blame for the recent increase. […]

A Tale of Two Polities: UK and U.S. Fiscal Policy

March 24, 2011 0

For primarily political reasons, the fiscal policies of the United States and the United Kingdom diverged dramatically in 2010, as British leaders introduced a harsh austerity program while U.S. policy makers agreed to extend tax cuts. […]

Global Rebalancing: The Dangerous Obsession

January 10, 2011 0

The recent emphasis on global economic rebalancing stokes current tensions and contributes to protectionist sentiment while diverting attention away from what is really needed—domestic reforms in the world’s largest economies. […]

Currency Tensions: Four Lessons From History

December 9, 2010 0

An examination of past episodes of currency tension suggests that competitive devaluations are not likely today. But the forces behind past collapses remain highly relevant and policy makers cannot afford to be complacent. […]

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