Exchange Rates and the Crisis: The Dog That Didn’t Bark
During the financial crisis, exchange rates adjusted in a remarkably orderly way. Policy makers should be aware, however, that severe exchange rate tensions still require their attention. […]
Global Economic Outlook
Is a Sovereign Debt Crisis Looming?
Skyrocketing government debt is emerging as a new risk to the global recovery, prompting calls for stimulus withdrawal. Sustaining growth, however, should remain policy makers’ top priority. […]
Why No U.S. President will Bomb Iran
The Obama administration’s deadline for Iran to enter discussions on the nuclear issue has passed. In spite of claims from Washington that “all options are on the table,” the economic crisis makes a military response to Iran infeasible. […]
Global Outlook: Not Your Average Crisis
Recovery came faster than expected in 2009 and forecasts seem to be underestimating the outlook again—this time for 2010. The consequences of underestimating growth remain milder than those of overestimating it, however, and policy makers should not accelerate stimulus withdrawal. […]
Doll(ar)-Drums?
While China’s role in global trade is continuing to grow, the dollar, not the yuan or the euro, will remain the world’s leading reserve currency for the foreseeable future. […]
The G20 in 2050
By 2050, emerging countries in Asia and Latin America are expected to become economic powers comparable to the United States and Europe, dramatically shifting the world’s balance of power. […]
The G20 is Promoted
The G20 has claimed its spot as the world’s leading economic forum. Though it failed to adequately address trade, the group did discuss climate change, signaling a shift from crisis control to a long-term focus. […]
Four Challenges in Pittsburgh
World leaders meeting at the G20 summit in Pittsburgh must tread carefully as they plan to withdraw government stimulus from their economies and insist that countries enact reforms needed to prevent a future crisis. […]
Developments in the Global Economy
Persistent uncertainties related to the strength and sustainability of final demand imply a significant risk that the incipient recovery will be aborted or short-lived. […]
The Unequal Impact of the Economic Crisis
Large industrialized nations like the United States, Japan, and Germany have benefited from increasing global demand for relatively stable economies in which to invest. […]