Deficit countries are neglecting the needed—and more difficult—reforms at home and fueling protectionist sentiment abroad with their focus on external trade imbalances and their calls for major surplus economies to increase demand. […]
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. […]
Though the U.S. financial sector is recovering from the crisis that erupted eighteen months ago, loan losses continue to mount and banks remain dependent on government support. […]
The world’s economic balance of power is shifting, as emerging countries rapidly overtake traditional Western powers as the predominant world economies. The recent global recession has only accelerated this trend. […]
The global recovery is gaining traction as world trade and industrial production continue their impressive acceleration and the announcement of a Greek rescue package has provided the markets with much-needed reassurance. […]
The dispute between the United States and China over the value of China’s renminbi distracts both countries from more important reforms. Policy makers should prioritize maintaining a collaborative relationship over staging another fruitless debate. […]
The global recovery is strengthening and growth in 2010 is likely to be modestly higher than consensus estimates, but the crisis in Greece—and its possible spread to other Euro area countries—poses a significant risk. […]
Copyright © 2024 | Economic Policy International
