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 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. […]
As the Euro crisis continues to play out in Greece, troubled economies in Europe face years of slow growth and deflation unless European Union leaders overhaul fiscal and monetary policy. […]
As the Euro crisis continues to play out in Greece and other weak Euro area members, the time has come for policy makers to consider moderately raising their inflation targets. […]
History shows that while leaving the Euro area and defaulting would have disastrous implications for Greece and Euro area, it may become the best of bad options if Greece does not receive adequate support from the EU. […]
Greece is now facing a sovereign debt crisis that is calling into question the viability of the Euro itself. While there are no easy solutions to this crisis, both Germany and the IMF must provide Greece with the support it needs. […]
As market confidence in the Greek government debt teeters on collapse, and confidence in Portugal, Spain, and Ireland continues to erode, an urgent question has emerged: will the Euro area implode? […]
Skyrocketing government debt is emerging as a new risk to the global recovery, prompting calls for stimulus withdrawal. Sustaining growth, however, should remain policy makers’ top priority. […]
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