News & Commentary

International News International news pertinent to international economics is added here, together with several major newspapers and news magazines. The articles, in general, are held for a month on this main page. You can also access the older archived news articles, with the caveat that there is no guarantee that the links remain live. Current news on international financial markets can be found here. Note: Links to the New York Times require a free registration.

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July 2014 Archive

August 2014 Archive

The fight for ‘China’s sorrow’ Financial Times Subscription Required
Lucy Hornby (FT) Sep 1, 2014
As the economy booms, the burden on the Yellow River has increased and the challenge for Beijing is to prevent the sixth-longest river running dry.

Financial reforms will not help crises Financial Times Subscription Required
John Plender (FT) Sep 1, 2014
Unlike a bailout, bailing in creditors will inflict losses on other systemically important financial institutions.

India’s economic confidence returns Financial Times Subscription Required
James Crabtree (FT) Sep 1, 2014
The idea that India could expand more rapidly than China no longer seems absurd, but the country’s recovery remains both gradual and fragile.

The Human Toll of Offshoring New York Times Subscription Required
Joe Nocera (NYT) Sep 1, 2014
What should we be doing to make globalization work for us instead of against us?

The World's Youngest Failed State Foreign Affairs Subscription Required
Madhu Narasimhan (FA) Sep 1, 2014
In the 12 years since gaining independence, East Timor has struggled in almost every facet of economic and political management. As its neighboring economies boom, it is quietly on the path to becoming a failed state. And it is quickly running out of time to change course.

Africa's City on a Hill Foreign Affairs Subscription Required
Seth Kaplan (FA) Sep 1, 2014
Lessons from Lagos.

Can't Buy Me Love Foreign Affairs Subscription Required
John Osburg (FA) Sep 1, 2014
China's new rich and its crisis of values.

Banker to the Poor Foreign Affairs Subscription Required
Jim Yong Kim (FA) Sep 1, 2014
The World Bank's president talks to Foreign Affairs about fighting inequality, his reform program, and who should succeed him.

Spain's 50-Year Bond Opportunism
Mark Gilbert (Bloomberg View) Sep 1, 2014
Spain can borrow money for half a century at just 4%; where on earth is its motivation for economic reform expected to come from?

Down with Dengism
Minxin Pei (Project Syndicate) Sep 1, 2014
China has held a series of high-profile ceremonies honoring the 110th anniversary of former leader Deng Xiaoping’s birth. But, though Deng deserves appreciation for having brought China back from the abyss of Maoism, his authoritarian development model is impeding China’s prospects.

Democracy in the Twenty-First Century
Joseph E. Stiglitz (Project Syndicate) Sep 1, 2014
The economist Thomas Piketty’s forecast of still higher levels of inequality does not reflect the inexorable laws of economics. Indeed, the main question today is not really about capital in the twenty-first century; it is about democracy in the twenty-first century.


Christian Daude & Eduardo Levy Yeyati (VoxEU) Sep 1, 2014
Central banks’ exchange rate interventions are typically attributed to precautionary, prudential, or mercantilist motives. This column documents the prevalence of an alternative motive – that of stabilising the exchange rate – in emerging markets, where, despite heavy intervention, the Global Crisis saw important deviations of the real exchange rate from its equilibrium value. Exchange rate intervention is shown to be effective, but more so at containing appreciations than depreciations.

Has Draghi Really Saved the Euro? Adobe Acrobat Required
Desmond Lachman (TIE) Sep 1, 2014
The currency rests on two questionable premises.

The Great Bubble Debate Adobe Acrobat Required
Bernard Connolly (TIE) Sep 1, 2014
Can both sides be right?

Yellen vs. the BIS: Whose Thesis Makes Better Sense? Recommended! Adobe Acrobat Required
Various (TIE) Sep 1, 2014
The economic policy world is in stark intellectual disagreement.

Eurozone: Draghi’s new deal Financial Times Subscription Required
Claire Jones (FT) Sep 2, 2014
The ECB president’s call for a fiscal and monetary compact between it and the currency bloc members is seen as vital by some observers but a ploy by others.

Predators eye opportunities to swoop in Asia Financial Times Subscription Required
Henny Sender (FT) Sep 2, 2014
Investors are gearing up for what many expect to be more widespread openings across Asia as both the level and the cost of debt rises.

Holdouts give vultures a bad name Financial Times Subscription Required
Martin Wolf (FT) Sep 2, 2014
Argentina’s creditors should make every effort to protect themselves from the vagaries of American judges.

Instinct and analysis inform wise choices Financial Times Subscription Required
John Kay (FT) Sep 2, 2014
We have an army of transport modellers, environmental experts and risk managers turning evidence-based policy into policy-based evidence.

QE would end EU financial fragmentation Financial Times Subscription Required
Gene Frieda (FT) Sep 2, 2014
For large swaths of the eurozone real interest rates remain inappropriately high given low levels of inflation, despite yields being at all-time lows.

The Climate Change Agenda Needs to Adapt to Reality Wall Street Journal Subscription Required
Edward P. Lazear (WSJ) Sep 2, 2014
Limiting carbon emissions won't work. Better to begin adjusting to a warmer world.

China's Runaway Steel Industry
Adam Minter (Bloomberg View) Sep 2, 2014
Despite orders from Beijing, China's steel industry continues to expand at a dizzying and unprofitable pace. Can anything slow it down?

Why This Market Rally Is So Unloved
Mohamed A. El-Erian (Bloomberg View) Sep 2, 2014
Readers' comments suggest investors don't trust the rally but won't fight central banks.

Educating Everyone
Gordon Brown (Project Syndicate) Sep 2, 2014
The odds are weighed heavily against achieving the target set by the Millennium Development Goals of ensuring by December 2015 that every school-age child is actually in school. With children in Gaza, Syria, Iraq, and Nigeria in the firing line in recent months, the scale of the challenge could not be more apparent.

Teaching Economic Dynamism
Edmund S. Phelps (Project Syndicate) Sep 2, 2014
Business leaders often argue that the widening education gap – the disparity between what young people learn and the skills that the job market demands – is a leading contributor to high unemployment and slow growth in many countries. But the two main arguments underpinning that claim are weak, at best.

The Exaggerated Death of Inflation
Kenneth Rogoff (Project Syndicate) Sep 2, 2014
Modern central banking has worked wonders to bring down inflation. Ultimately, however, a central bank’s anti-inflation policies can work only within the context of a macroeconomic and political framework that is consistent with price stability.

Let There Be Light Foreign Affairs Subscription Required
Todd Moss and Benjamin Leo (FA) Sep 2, 2014
Washington's ambitious plan to help Africa generate electricity.

Prospects for Asia and the Global Economy
Reuven Glick and Mark M. Spiegel (FRBSF Economic Letter) Sep 2, 2014
The challenges faced by policymakers in advanced and emerging economies as they continue to recover from the recent global financial crisis.

The impact of capital requirements on bank lending
Jonathan Bridges, David Gregory, Mette Nielsen, Silvia Pezzini, Amar Radia and Marco Spaltro (VoxEU) Sep 2, 2014
Since the Global Crisis, support has grown for the use of time-varying capital requirements as a macroprudential policy tool. This column examines the effect of bank-specific, time-varying capital requirements in the UK between 1990 and 2011. In response to increased capital requirements, banks gradually increase their capital ratios to restore their original buffers above the regulatory minimum, reducing lending temporarily as they do so. The largest effects are on commercial real estate lending, followed by lending to other corporates and then secured lending to households.

China tightens its grip on Hong Kong Financial Times Subscription Required
David Pilling (FT) Sep 3, 2014
Power resides with Beijing and the presence of Li, Beijing’s emissary, has relegated Hong Kong’s own officials to irrelevance.

Quantitative easing is the wrong route Financial Times Subscription Required
Michael Heise (FT) Sep 3, 2014
Over-indebted households and companies in the eurozone are unlikely to pile up more debt. This makes monetary policy ineffective.

The World’s Polio Problem
Globalist Sep 3, 2014
Polio is still a big problem for poor, war-torn countries.

Why Trade Matters in Four Maps
Fred Dews (Brookings) Sep 3, 2014
How the U.S. can overcome challenges in current trade negotiations.

Mario Draghi's Stimulus Dilemma
Mohamed A. El-Erian (Bloomberg View) Sep 3, 2014
Thanks to the inaction of European governments, the ECB probably won't be able to launch a full-scale stimulus program this week.

Is Abenomics Working?
Koichi Hamada (Project Syndicate) Sep 3, 2014
Preliminary GDP data show a 6.8% contraction year-on-year in the second quarter of this year – the largest since the 2011 earthquake and tsunami that devastated the country. It is time for Japan's leaders to shift their focus toward a new growth strategy, centered on labor-market reform, deregulation, and corporate-tax changes.

Should Scotland Leave the Pound Zone?
Harold James (Project Syndicate) Sep 3, 2014
Advocates of independence for Scotland have long insisted that they are motivated by the distinctiveness of Scottish identity. But, as Scots prepare to vote in this month's referendum on whether to remain in the UK, the more immediate issue is money.

The political economy of regional policy and industrial location
Magnus Wiberg (VoxEU) Sep 3, 2014
Regional policy is a primary expenditure item for many countries. A substantial share of the regional policy budget is allocated to firms in poor regions. This column argues that electoral concerns and rent-seeking behaviour bias regional policy in favour of smaller regions. However, this bias lowers total welfare.

A world retreating from globalisation Financial Times Subscription Required
Philip Stephens (FT) Sep 4, 2014
The architect of the present era of globalisation is no longer willing to be its guarantor as it no longer serves the national interests.

The price of keeping the pound for Scots Financial Times Subscription Required
Martin Wolf (FT) Sep 4, 2014
Scotland, but not the UK, would have an incentive to profligacy, and one-sided risk demands one-sided control.

An unequal world is an economic threat Financial Times Subscription Required
Gillian Tett (FT) Sep 4, 2014
Since the global economic crisis of 2008, western growth rates have been disappointing: economists fear ‘secular stagnation’

Draghi brings out ABS rocket boosters Financial Times Subscription Required
Ralph Atkins (FT) Sep 4, 2014
ABS programme will take central bank significantly closer to providing credit direct to the real economy, relieving burden on weakened banks.

Africa Beyond Ebola
Ana Palacio (Project Syndicate) Sep 4, 2014
Among this summer’s grave global worries, the spread of the Ebola virus has monopolized the discussion of Sub-Saharan Africa and reinvigorated hoary notions of disorder and despair – at a time when a new image of a dynamic Africa was emerging. In fact, there is still strong reason for optimism about the region’s prospects.

The BIS Bashers
Mojmír Hampl (Project Syndicate) Sep 4, 2014
The Bank for International Settlements exists not just to represent central banks, but also to offer ideas and intellectual feedback. Unfortunately, too many central bankers are seeking to marginalize the BIS in debates over "unconventional" monetary policy.

Africa’s Hidden Hunger
Ramadhani Abdallah Noor (Project Syndicate) Sep 4, 2014
Just over 20 years ago, South African photographer Kevin Carter shocked the world with a controversial photograph of a famished young Sudanese child being watched by a vulture during a famine. Two decades later, the conditions that the photograph depicts remain essentially the same.

What The Economist could have read before suggesting that U.S. slavery wasn’t all bad
Chris Blattman (WP) Sep 5, 2014
On Friday, The Economist retracted a book review that went soft on slavery. But the review of Edward Baptist’s book, “The Half Has Never Been Told” wasn’t just racially insensitive, it was soft on evidence, too.

The ECB Throws down the Gauntlet
Jacob Funk Kirkegaard (PIIE) Sep 5, 2014
The European Central Bank (ECB) surprised financial markets on September 4 by announcing an interest rate cut of 10 basis points, a new program to purchase asset-backed securities (ABS) in the nonfinancial sector, and another round of purchases of covered bank bonds.

Should Venezuela Default?
Ricardo Hausmann and Miguel Angel Santos (Project Syndicate) Sep 5, 2014
The fact that President Nicolás Maduro's administration has chosen to default on 30 million Venezuelans, rather than on Wall Street, is not a sign of its moral rectitude. It is a signal of its moral bankruptcy.

Were we happier in the stone age?
Yuval Noah Harari (Guardian) Sep 5, 2014
Does modern life make us happy? We have gained much but we have lost a great deal too. Are humans better suited to a hunter-gatherer lifestyle?

There's poverty in the UK, but we are better off calling it inequality
John Lanchester (Guardian) Sep 5, 2014
If you think the world is too divided into those who have the cream and those who don't, you ain't seen nothing yet.

Increasing government popularity predicts emerging-market financial crises
Christoph Trebesch, Helios Herrera and Guillermo L. Ordoñez (VoxEU) Sep 6, 2014
Financial crises are often credit booms gone bust. This column argues that ‘political booms’, defined as an increase in government popularity, are also a good predictor of financial crises. The phenomenon of ‘political booms gone bust’ is, however, only observable in emerging markets. In these countries, politicians have more to gain from riding the popularity benefits of unsustainable booms.

Trade liberalisation, quality upgrading, and export prices
Haichao Fan, Yao Amber Li and Stephen Yeaple (VoxEU) Sep 6, 2014
Trade liberalisation has transformed the economies of many developing countries. This column presents evidence from China’s accession to the WTO. The authors find that high tariffs on imported inputs prevented Chinese firms from producing high-quality goods. When these tariffs were reduced, firms upgraded the quality of their products, entering more competitive foreign markets.

Allegations of dirty tricks blur picture Financial Times Subscription Required
Demetri Sevastopulo (FT) Sep 7, 2014
Critics say China is dismantling the ‘one country, two systems’ model, aided by a business community that worries about losing contracts.

What Draghi must do next to fix Europe Financial Times Subscription Required
Wolfgang Munchau (FT) Sep 7, 2014
Eurozone policy makers and their economic advisers are structuralists by inclination. The monetarists are mostly gone, even in Germany.

Reform is the answer to secular stagnation Financial Times Subscription Required
Lawrence Summers (FT) Sep 7, 2014
There may now be supply-side barriers that hold the economy back before constraints on demand start to bind.

Sanctions oil Russia-China relations Financial Times Subscription Required
Guy Chazan (FT) Sep 7, 2014
As restrictions on access to western funds start to bite Moscow is building ties with the neighbour it was at war with 45 years ago.

China’s Education Gap New York Times Subscription Required
Helen Gao (NYT) Sep 7, 2014
The school system serves to reinforce entrenched social exclusion.

Scots, What the Heck? New York Times Subscription Required
Paul Krugman (NYT) Sep 7, 2014
The very bad economics of independence.

The Fed Is Looking Like a Sovereign Wealth Fund
David Malpass (WSJ) Sep 7, 2014
Instead of tackling a complex new investment mission, the Fed should establish a clear portfolio wind-down process.

A ‘sovereign subsidy’ – zero risk weights and sovereign risk spillovers
Josef Korte and Sascha Steffen (VoxEU) Sep 7, 2014
European banking regulation assigns a risk weight of zero to sovereign debt issued by EU member countries, making it an attractive investment for European banks. This column defines a ‘sovereign subsidy’ as a new measure quantifying to what extent banks are undercapitalised due to the zero risk weights. Using recent sovereign debt exposure data, the authors describe the build-up of this subsidy for both domestic and cross-country exposures.

Australia: Culture clash Financial Times Subscription Required
Jamie Smyth (FT) Sep 8, 2014
The economy is facing its biggest challenge in a generation and yet the government seems preoccupied with policies that have led some to claim it is waging an ideological war.

Why investors ignore war and terror Financial Times Subscription Required
Gideon Rachman (FT) Sep 8, 2014
Global political change has done more to create investment opportunities than to destroy them while it is economics that shifts sentiment.

Default call highlights Venezuelan weakness Financial Times Subscription Required
Paul Rathbone (FT) Sep 8, 2014
Harvard economist suggests Caracas default on its foreign bonds to share its financial burdens with its creditors, rather than its citizens alone.

Question hangs over Draghi’s latest salvo Financial Times Subscription Required
Patrick Jenkins (FT) Sep 8, 2014
There is good reason to be sceptical. The new measures are indirect and there is no guarantee that freed-up lending capacity will be channelled into SMEs.

Salmond’s threat on the pound and debt Financial Times Subscription Required
James Mackintosh (FT) Sep 8, 2014
There will almost certainly be no actual debt repudiation despite threat by Scotland’s first minister. Scotland will not take on debt and then refuse to pay.

Post-QE wave to break over fund managers Financial Times Subscription Required
Mohamed El-Erian (FT) Sep 8, 2014
Central banks helped the industry avoid disaster and rebuild profits, but managers will need to deal with the side effects of unconventional policy.

Facing Reality in the Eurozone
Adair Turner (Project Syndicate) Sep 8, 2014
The implications of ECB President Mario Draghi’s comments at the annual Jackson Hole gathering of central bankers contained a more startling implication than many initially recognized. Escaping from recession and avoiding a eurozone breakup will require ECB-financed fiscal stimulus.

Africa’s Education Imperative
Viswanathan Shankar (Project Syndicate) Sep 8, 2014
In Africa, large-scale investment in education has enabled significant gains in literacy, school attendance, and university enrollment in recent years. But the continent still has a long way to go.

Scotland's Exit: An Earthquake for Britain
Denis MacShane (Globalist) Sep 8, 2014
London has already lost in the fight for Scottish independence.

The Federal Reserve in the run-up to the Global Crisis
Stephen Golub, Ayse Kaya and Michael Reay (VoxEU) Sep 8, 2014
Since the Global Crisis, critics have questioned why regulatory agencies failed to prevent it. This column argues that the US Federal Reserve was aware of potential problems brewing in the financial system, but was largely unconcerned by them. Both Greenspan and Bernanke subscribed to the view that identifying bubbles is very difficult, pre-emptive bursting may be harmful, and that central banks could limit the damage ex post. The scripted nature of FOMC meetings, the focus on the Greenbook, and a ‘silo’ mentality reduced the impact of dissenting views.

Income-induced expenditure switching: Evidence from Latvia
Rudolfs Bems and Julian di Giovanni (VoxEU) Sep 8, 2014
Unconventional policy responses to the 2008-09 Crisis in Latvia and its subsequent recovery caught many economists by surprise. This column uses evidence from detailed product-level data to argue that income-induced expenditure switching from expensive imported to cheap domestic goods was an important contributor to the external adjustment. The conventional relative price channel played a small role.

Modi Misses the Mark Foreign Affairs Subscription Required
Derek Scissors (FA) Sep 8, 2014
India's new government lacks economic vision.

Europe has to do whatever it takes Financial Times Subscription Required
Martin Wolf (FT) Sep 9, 2014
The new European Commission needs to take a stand for common sense and growth, instead of insisting on misery yet again.

Dilemma of defining banking risk appetite Financial Times Subscription Required
Howard Davies (FT) Sep 9, 2014
Reaching an understanding that allows banks to take measured risks without fear of later challenge remains difficult.

Rural Capitals, Big-Time Problems New York Times Subscription Required
Filipe R. Campante (NYT) Sep 9, 2014
Moving a government to an isolated spot, as Argentina may do, can mean more corruption.

The Federal Reserve's Too Cozy Relations With Banks Wall Street Journal Subscription Required
Stephen Haber and Ross Levine (WSJ) Sep 9, 2014
Working at the Fed shouldn't be an audition for a Wall Street job. Waiting periods and other reforms are needed.

The Age of the Unthinkable Wall Street Journal Subscription Required
John Micklethwait and Adrian Wooldridge (WSJ) Sep 9, 2014
Tumultuous days in the world's democracies present an opening for conservative ideas to flourish.

Restructuring Debt Restructuring
Barry Eichengreen (Project Syndicate) Sep 9, 2014
Argentina's latest default was an episode from which no one – not the Argentine government, not the holdout investors that sued for full payment, and not US federal court judge Thomas Griesa, who ruled in favor of the "vultures" – emerged smelling like a rose. But sometimes the worst intentions yield the best results.

A New Trans-American Partnership
Ernesto Talvi (Project Syndicate) Sep 9, 2014
Rediscovering the spirit of the 1994 Summit of the Americas, where US President Bill Clinton and his Latin American counterparts set out a grand vision for the hemisphere, would benefit all. One way to revive that sense of common purpose would be to create a new Trans-American Partnership.

It's Not About the Money Foreign Affairs Subscription Required
Mark Blyth (FA) Sep 9, 2014
Why Scotland might just say yes to independence.

Argentina Default Flashes Warning to Emerging Markets
Will Hickey (YaleGlobal) Sep 12, 2014
Struggle of countries like Argentina for orderly default mired in Western financial and legal system

Scotland’s fateful choice Financial Times Subscription Required
FT editors Sep 10, 2014
The case for union is overwhelming. The path of separation is a fool's errand, one fraught with danger and uncertainty.

Japan is creating jobs but not prosperity Financial Times Subscription Required
David Pilling (FT) Sep 10, 2014
Casualisation of the labour market is stifling the reflationary experiment, and wages need to rise in line with inflation.

Scots vote poses threat to EU integration Financial Times Subscription Required
Ralph Atkins (FT) Sep 10, 2014
Even if the Noes prevail, a close result would further threaten the gradual process of financial integration that has underpinned Europe’s development.

Europe’s bank bail-in rules change game Financial Times Subscription Required
Tim Skeet (FT) Sep 10, 2014
Should investors’ due diligence indicate bank trouble on the horizon, they may find themselves in a bizarre game of cat and mouse with regulators.

Catalonia: Another country Financial Times Subscription Required
Tobias Buck (FT) Sep 10, 2014
Spain is heading for a bitter political crisis as calls for independence from one of its most economically powerful regions come to a head.

WTO Members Return to Geneva, Hoping to Bridge TFA Gap
Bridges, Volume 18, Number 29 Sep 10, 2014
A flurry of meetings is scheduled for the coming weeks as WTO members – having now returned to Geneva following their annual August break – try to pick up the pieces after missing a key implementation deadline this past July.

US-Japan Farm Trade Divides Persist as TPP Chief Negotiators End Hanoi Meet
Bridges, Volume 18, Number 29 Sep 10, 2014
Chief negotiators from 12 Trans-Pacific Partnership (TPP) countries concluded a 10-day meeting in Hanoi, Vietnam, earlier today, in an effort to pare down some of their remaining differences. While progress was reported in some areas of the trade talks, a concurrent set of bilateral meetings in Tokyo between the US and Japan showed that the two sides remain at odds on the key issue of agricultural tariffs.

FAO: Ebola Outbreak Putting West African Trade, Food Security in Jeopardy
Bridges, Volume 18, Number 29 Sep 10, 2014
Disruptions in cross-border trade and marketing in the three West African countries most affected by the Ebola outbreak – Liberia, Sierra Leone and Guinea –have sent food prices soaring, threatening food security

Should the World Fund Food Aid to North Korea?
Marcus Noland (PIIE/Guardian) Sep 10, 2014
For nearly three decades a chronic food emergency has gripped North Korea. In the 1990s a famine killed up to 5 percent of the precrisis population.

The OECD must take charge of promoting long-term investment in developing country infrastructure
Sony Kapoor (OECD) Sep 10, 2014
The world of investment faces two major problems. Problem one is the scarcity – in large swathes of the developing world – of capital in general, and of money for infrastructure investments in particular. Problem two is the sclerotic, even negative rate of return on listed bonds and equities in many OECD economies.

How the Rich Rule
Dani Rodrik (Project Syndicate) Sep 10, 2014
Widening inequality in the world’s advanced and developing countries inflicts two blows against democratic politics. Not only does it lead to greater disenfranchisement of the middle and lower classes; it also fosters among the elite a poisonous politics of sectarianism.

Fighting the Fed Both Ways
Mark Gilbert (Bloomberg View) Sep 10, 2014
Even in this age of forward guidance, divining what central banks will do next remains an art rather than a science.

Ants Are Cool but Teach Us Nothing
Edward O. Wilson (Bloomberg View) Sep 10, 2014
The awesome superorganisms that ants form are built on instinctive labor specialization of a kind that could never occur in the human species.

Don't Let the Dark Ages Happen Here
Noah Smith (Bloomberg View) Sep 10, 2014
The Middle East was once a bastion of scientific enlightenment, but the rise of religion played a key role in turning the region into a cultural backwater.

Quantifying the macroeconomic effects of large-scale asset purchases
Karl Walentin (VoxEU) Sep 10, 2014
Central banks have resorted to various unconventional monetary policy tools since the onset of the Global Crisis. This column focuses on the macroeconomic effects of the Federal Reserve’s large-scale purchases of mortgage-backed securities – in particular, through reducing the ‘mortgage spread’ between interest rates on mortgages and government bonds at a given maturity. Although large-scale asset purchases are found to have substantial macroeconomic effects, they may not necessarily be the best policy tool at the zero lower bound.

To exit the Great Recession, central banks must adapt their policies and models
Marcus Miller and Lei Zhang (VoxEU) Sep 10, 2014
During the Great Moderation, inflation targeting with some form of Taylor rule became the norm at central banks. This column argues that the Global Crisis called for a new approach, and that the divergence in macroeconomic performance since then between the US and the UK on the one hand, and the Eurozone on the other, is partly attributable to monetary policy differences. The ECB’s model of the economy worked well during the Great Moderation, but is ill suited to understanding the Great Recession.

The humanitarian future
Paul Currion (Aeon) Sep 10, 2014
Can humanitarian agencies still fly the flag of high principle, or are they just relics of an imperial model of charity?

The world says No to Scottish separation Financial Times Subscription Required
Philip Stephens (FT) Sep 11, 2014
The Yes campaign has replaced civic nationalism with identity politics in a cynical, bewildering and finite game.

Virtual drawbridge of fortress finance Financial Times Subscription Required
Gillian Tett (FT) Sep 11, 2014
The big question is what might happen if Russian hackers stop feeling they have a stake in global finance or market stability.

Referendum poses threat to EU integration Financial Times Subscription Required
Ralph Atkins (FT) Sep 11, 2014
Even if the Noes prevail, a close result would further threaten the gradual process of financial integration that has underpinned Europe’s development.

Eurozone must change mindset to survive Financial Times Subscription Required
Stephen King (FT) Sep 11, 2014
Monetary policy alone will not be enough to solve the European single currency area’s deep-rooted problems.

The Inflation Cult New York Times Subscription Required
Paul Krugman (NYT) Sep 11, 2014
We're still trying to figure out the persistence and power of the people who keep predicting runaway inflation.

If Scotland Goes, Then Britain Too? New York Times Subscription Required
Jenny Anderson (NYT) Sep 11, 2014
As Scotland prepares to vote on independence on Thursday, British bankers worry about an exit from the European Union.

Preventing the Next Argentina Foreign Policy Subscription Required
Jamila Trindle (FP) Sep 11, 2014
Efforts to fix the global debt system grind on with no quick fix.

On inequality - with any search for answers, it helps if people can first agree on the question
Kevin Murphy (Pieria) Sep 11, 2014
Income inequality is by no means a new concern but it is one that seems to have become increasingly controversial and politicised in recent years.

Will Currencies Undermine Calm in Markets?
Mohamed A. El-Erian (Bloomberg View) Sep 11, 2014
Currency gyrations could erode the financial stability that central banks have worked so hard to achieve.

Spain Should Beware Scottish Precedent
Mark Gilbert (Bloomberg View) Sep 11, 2014
Following the money suggests Catalonia is the most likely candidate to attempt to follow Scotland down the path to independence.

Monetary Policy Isn't Class Warfare
Ramesh Ponnuru (Bloomberg View) Sep 11, 2014
What the pundits are misunderstanding about the Federal Reserve.

Masters of Earth, Alone in the Universe
Edward O. Wilson (Bloomberg View) Sep 11, 2014
If humankind is to plan a more rational, catastrophe-proof future, we need to understand ourselves in both evolutionary and psychological terms.

Education and Opportunity
Lee Jong-Wha (Project Syndicate) Sep 11, 2014
In recent decades, a concerted effort from governments and international institutions has contributed to considerable progress in expanding educational opportunities and school-enrollment rates worldwide. But there is much more to be done, particularly with respect to improving the quality of education.

Parallels to 1937
Robert J. Shiller (Project Syndicate) Sep 11, 2014
The depression that followed the 1929 stock-market crash took a turn for the worse eight years later, and recovery came only with the enormous economic stimulus provided by World War II, a conflict that cost more than 60 million lives. The global situation today is not nearly so dire, but there are parallels, particularly to 1937.

High-Frequency Trading Recommended!
Donald MacKenzie (LRB) Sep 11, 2014
Originally, the data needed for high-frequency trading travelled almost exclusively via fibre-optic cables, in which signals move at about two-thirds of the speed that light travels in a vacuum. But 125,000 miles per second isn’t fast enough if other market participants are faster. So there’s a race on.

Worth Its Weight New York Times Subscription Required
Daniel W. Drezner (NYT) Sep 12, 2014
A historian examines the rise of the gold standard and the economies that have embraced and abandoned it.

We Are All Quants Now Wall Street Journal Subscription Required
Paula Marantz Cohen (WSJ) Sep 12, 2014
What's 'like' got to do with it? A lot—but not everything.

Bolster the Export-Import Bank
C. Fred Bergsten (WP) Sep 12, 2014
We must fight fire with fire to end the latest export credit race.

Is Scotland Big Enough To Go it Alone?
Peter St. Onge (Mises Daily) Sep 12, 2014
Back when Quebec was weighing secession from Canada, I was a lowly American undergrad living in Montreal. It was an exciting time, since in America we have our railroads torn up and population starved when we secede. Now that Scotland is going through the motions, I figured I’d stir the pot, economically.

Europe's Weak Because It's Uncompetitive
Leonid Bershidsky (Bloomberg View) Sep 12, 2014
The new European competitiveness reports show that an inflexible labor market and overcautious banks are the EU economy's biggest problems.

Asia’s Democratic Dark Spots
Shashi Tharoor (Project Syndicate) Sep 12, 2014
Democracy in Asia lately has proved to be hardier than many might have expected, with free and fair elections enabling the large and divided societies of India and Indonesia to manage important political transitions. But some Asian democracies – notably, Thailand and Pakistan – seem to be losing their way.

Rapid growth in emerging markets and developing economies: Now and forever?
Giang Ho and Paolo Mauro (VoxEU) Sep 12, 2014
Forecasters often predict continued rapid economic growth into the medium and long term for countries that have recently experienced strong growth. Is this optimism warranted by past international growth experience? This column explores this question by looking at economic growth forecasts at longer-term horizons.

Is the ECB doing QE?
Charles Wyplosz (VoxEU) Sep 12, 2014
Last week, the ECB announced that it would begin purchasing securities backed by bank lending to households and firms. Whereas markets and the media have generally greeted this announcement with enthusiasm, this column identifies reasons for caution. Other central banks’ quantitative easing programmes have involved purchasing fixed amounts of securities according to a published schedule. In contrast, the ECB’s new policy is demand-driven, and will only be effective if it breaks the vicious circle of recession and negative credit growth.

Economic convergence: The headwinds return Economist Subscription Required
Economist Sep 13, 2014
Ten years ago, developing economies were catching up with developed ones remarkably quickly. It was an aberration



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