Few would disagree that the international banking system must change, but agreement on how remains elusive. Various plans have been put forward, including restricting banks to the most basic functions of financial intermediation. […]
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. […]
Developing countries already play a substantial role in world trade, and their significance is only expected to rise. As they diversify and grow as export markets, emerging economies will come to dominate international trade. […]
Though Italy has exhibited better fiscal management than Greece, its debt level is still higher and its competitiveness has deteriorated just as sharply. To avoid its own sovereign debt crisis, Italy must raise its primary balance, cut labor costs, and enact structural reform. […]
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 recent spike in Greek bond yields indicates that markets have not been reassured by European leaders’ pledges to support Greece. Unless more decisive, detailed plans are announced, the Greek crisis will continue to get worse. […]
The plan recently announced by European leaders to support Greece leaves many questions unanswered, and markets will likely withhold judgment on the agreement until a more credible rescue package is developed. […]
If European leaders are to avoid sinking deeper into a crisis with unpredictable consequences, they must take urgent and immediate action, not debate far-reaching proposals such as a European Monetary Fund. […]
The debate over China’s currency propagates dangerous myths about both the Chinese economy and the potential benefits of a more expensive renminbi for the United States. […]
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. […]
Copyright © 2024 | Economic Policy International
