Why China Needs a Global Conscience
The transformation of China into an economic powerhouse will fundamentally alter Beijing’s relationship with the global economy and require far-reaching changes in the global institutional architecture. […]
Economic Instability
Is the World Economy Headed for a Double Dip?
Though the global recovery is weakening, the world economy is not likely to head back into recession unless the sovereign debt crisis in Italy and Spain intensifies. […]
Averting Another Global Recession
Financial market turmoil and U.S. debt woes threaten to undermine the global recovery, but the biggest danger to the world economy comes from Europe and its worsening debt crisis. […]
Italy: Call in the G20?
The G20 should consider a bailout of Italy, which would also serve as an intervention for the euro and euro zone itself. […]
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. […]
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. […]
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 Capital Flow Conundrum
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. […]
Reshaping the Global Economic Landscape
Within a generation, developing countries will likely account for six of the world’s seven largest economies and dominate world trade. […]