Surviving the Storm is the First Priority
To save the euro, Europe must not only put out the immediate fire, but also act to prevent future fires by layering both fiscal and political unions on top of its currency union. […]
Economic Instability
The G20 Action Plan
Like European leaders in their summit the week before, the G20 failed to put forward concrete steps that will resolve the European debt crisis and stabilize global financial markets. […]
The Canned Summit
Although Cannes provided the United States and the broader G20 with an opportunity to rescue Europe from its current economic turmoil, the G20 did not make the tough decisions necessary to end the Eurozone crisis. […]
Brussels Summit: The Long War Ahead
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. […]
G20 Must Help Manage Eurozone Crisis
An economic crisis comparable in size and virulence to the Lehman Brothers episode could erupt if Italy and Spain lose their ability to borrow. The G20 must act now to stabilize the eurozone. […]
Will the Euro Survive?
With EU leaders scrambling to keep Greece afloat, rating agencies continuing to downgrade European sovereign credit, banks being pushed to the brink, and Europe likely slipping back into recession, time may be running out for the euro. […]
Taboos, Italy, and the Euro
Given the severity of the challenges facing Italy today—stagnating productivity, slow growth, and rising debt—and the country’s systemic importance, it is not unreasonable to ask whether Italy should stay in the euro. […]
The Great Recession and the Rich-Country Trap
With emerging markets surging ahead and the United States and other wealthy countries engulfed in a crisis that shows no sign of ending, it is worth asking if rich countries are in a growth trap—and should perhaps seek advice from their developing neighbors. […]
Making Europeans
Since bailouts alone are failing to end the European debt crisis, a new approach that pacifies markets, strengthens banks, mitigates moral hazard, and is politically acceptable to both core and periphery countries is urgently needed. […]
Germany’s Choice
Leaders in Germany and other eurozone countries are starting to recognize that dealing with the euro’s problems requires not just austerity and structural reforms in the periphery but also a much closer fiscal union. […]