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. […]
Germany
Portugal’s Bail-Out Follows Europe’s Not So Grand Bargain
While markets seem calm for now, the failure of the EU’s recent summit, combined with Portugal’s recent request for aid and other political setbacks, leaves the euro area vulnerable to a relapse of crisis. […]
Is the Euro Rescue Succeeding?
Despite the recent optimism in Europe, evidence that countries are dealing adequately with the underlying causes of the euro crisis remains scarce. For the European rescue to succeed, leaders must focus on structural problems, not just fiscal ones. […]
Currency Tensions: Four Lessons From History
An examination of past episodes of currency tension suggests that competitive devaluations are not likely today. But the forces behind past collapses remain highly relevant and policy makers cannot afford to be complacent. […]
At Pains to Grow
Overcoming the debt crisis that has stricken Europe and restoring long-term growth prospects for the continent will require European countries to enact major coordinated action and far-reaching structural reforms. […]
The Choice for Europe
The revival of the European debt crisis will force EU leaders to choose between entering into a deeper fiscal and economic union or confronting sovereign defaults and the possible break-up of the euro area. […]
California Dreaming
Despite the grim economic outlook for California, America’s Golden State holds lessons for how Europe can survive its own debt crisis and make the continent more resilient to future shocks. […]
Ireland and the European Debt Crisis
The enormous expansion of credit in Ireland and the sheer size of its building boom, which was accompanied by a very large loss of competitiveness, are at the center of the country’s crisis today.
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Europe Needs a California Dream
When rethinking the institutional arrangements that underpin their monetary union, Europeans should take note of the California’s experience during the Great Recession. […]
Can the G20 Grow Faster?
Faster growth in the G20 must come through increased demand in advanced nations—beginning with the United States and Germany—rather than agreements about currency appreciations or current account targets. […]