The International Economy

Daily provides news, commentary, and research on international economics. The source covers global financial policy, trends, and international law.

Articles from Vol. 24, No. 3, Summer

China's Structural Reform Policy: This Time Is It for Real?
Being the biggest saving nation in the world, China is part of the solution to the global economic imbalances that delivered the subprime crisis. In the post-crisis era, the world is watching China do its part in rebalancing its economy from relying...
Chinese Fire Drill: Forget Tinkering with the Renminbi's Dollar Peg. the Key Is to Increase Consumption
A strident chorus has lately attacked China's stubborn adherence to its policy of maintaining a narrowly-controlled renminbi peg to the U.S. dollar. The chorus includes senior U.S. government officials, politicians turned economists, economists turned...
Inflation or Deflation? the Great Mystery of Our Macroeconomic Future
The investors that I talk to these days are not sure whether to worry more about future inflation in the United States or about future deflation. The good news is that the answer--for at least the next few years--is that investors should worry about...
Obama's Big Failure: His Vague, Cautious Trade Policy
When Americans went to the polls in 2008, they cast their ballot for the more deliberative and creative candidate. Voters wanted change and Barack Obama delivered. Despite the cumulative pressure of multiple crises, from two wars to an economy in freefall...
Papademos: An Exclusive Interview: The Retiring European Central Bank Vice President Speaks out on the European Banks, Chances for a Double Dip, and the Survival of the Euro
[ILLUSTRATION OMITTED] TIE: With European policymakers calling for aggressive budget austerity, and with most of the world rejecting the American call for additional fiscal stimulus, is the world at risk of a so-called double-dip economic recession...
The Great Stimulus Debate
Background For some months, there has been an intense debate over the appropriate fiscal stance going forward. Does economic weakness require more fiscal stimulus? Are large budget deficits holding back growth ? Is it possible for fiscal consolidation--the...
The Marginalizing of the Individual Investor: The Inside Story of Flash Crashes, Systemic Risk, and the Demise of Value Investing
On May 6, 2010, at about 2:30 p.m., a "flash crash" in the U.S. stock market sent the Dow plummeting by almost 999 points--the deepest intraday plunge ever recorded. From 2:45 p.m. to 3:00 p.m. the Dow recovered by about 600 points. During the flash...
The Naked ECB: The Central Bank's Voting Arrangements Are in Need of Reform
The crisis in the eurozone remains far from resolution. Investor worries are now concentrated on the health of European banks, many of which have large exposures to Greece and the other southern European countries with severe fiscal problems. Europe's...
The Unaccountable G-8: Lessons for the Future
In hosting the 2010 G-8 summit of major economies (Canada, France, Germany, Italy, Japan, Russia, the United Kingdom, and the United States), Canadian Prime Minister Stephen Harper called for an "accountability summit," to hold the G-8 responsible...
The World Is Warming; Consider the Facts
This April was the hottest April on record, globally, for at least 130 years, according to the worldwide temperature records maintained by NASA and the U.S. National Oceanic and Atmospheric Administration. The past twelve months was the hottest twelve-month...
Who Lost Europe? the Future of the European Union and the Fate of the Eurozone Hang in the Balance
Financial meltdown has been averted in Europe--for now. But the future of the European Union and the fate of the eurozone still hang in the balance. If Europe doesn't find a way to reactivate the continent's economy soon, it will be doomed to years...