For primarily political reasons, the fiscal policies of the United States and the United Kingdom diverged dramatically in 2010, as British leaders introduced a harsh austerity program while U.S. policy makers agreed to extend tax cuts. […]
If asset prices and currency values overshoot and inflation surges, there is a risk that emerging markets will be hit with another potentially devastating financial crisis. […]
The recent emphasis on global economic rebalancing stokes current tensions and contributes to protectionist sentiment while diverting attention away from what is really needed—domestic reforms in the world’s largest economies. […]
Policy makers around the world who are pushing China to revalue its exchange rate should note that an appreciation of the renminbi—unless accompanied by an acceleration of China’s domestic demand—will be of little benefit to most economies. […]
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. […]
Policy makers should heed the lessons of the Great Recession and enact the structural and regulatory reforms needed to protect the world against the next crisis. […]
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. […]
Achieving sustainable fiscal policies in the United States is likely to prove more important for the promotion of sustained growth, both domestically and globally, than anything that could be done by China or Germany. […]
When rethinking the institutional arrangements that underpin their monetary union, Europeans should take note of the California’s experience during the Great Recession. […]
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. […]
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