In The News

Why China Can't and Won't Save the World

Emily Kaiser October 11, 2011
Struggling economies often eye China and its $3.2 trillion in reserves for their rescue, and that’s unrealistic, argues Emily Kaiser, Asian economics correspondent in analysis for Reuters. China would have to triple its current rate of growth to offset a 3 percent drop in US and European growth, explains one economist. Increased stimulus spending could exacerbate inflation, inefficient spending,...

Attention Buffetts 'Round the World

Mark Bloomfield October 11, 2011
After US billionaire Warren Buffet wrote in an opinion piece that the wealthy should pay higher taxes to boost the US economy, the suggestion triggered a global domino effect, explains economic policy expert Mark Bloomfield in an essay for Politico. Wealthy counterparts in France and Germany joined the chorus, but Bloomfield cautions against generating more funds for flawed systems: “The U.S. has...

How to Stop a Second Great Depression

George Soros September 30, 2011
Confidence in the global economy is slipping, as wealthy nations fail to control debt and prevent growing fears over defaults and government bonds once assumed to be safe. In an essay for the Financial Times, financier and philanthropist George Soros urges three bold steps for Europe to allow orderly default by Greece, if necessary, and keep the global markets calm: create a common treasury for...

Going... Going... Greece on the Brink

Maria Margaronis September 22, 2011
The social turmoil, bitterness and political infighting that accompany Greece’s debt crisis could offer a preview for other nations that fail to practice fiscal discipline. In exchange for loans, Greece’s creditors demand that the government cut spending, lay off public employees, reduce entitlements and raise taxes. A series of quick fixes and delays have given savviest creditors time to prepare...

China Plays Hard Ball

François Godement September 19, 2011
European nations deep in debt are playing a dangerous game with China by teasing global markets. Neither borrowers nor would-be rescuers offer transparency about how much European debt China holds. Sensing that China is increasingly the only available willing buyer, leaders like Wen Jiabao allude to conditional lending, urging an end to anti-dumping charges or allowing asset sales that benefit...

Swiss Franc Decision Should Be a Lesson for Euro Critics

Charles Hawley September 9, 2011
European economies, strong and weak, have their doubts about the continent’s common currency. Strong exporters like Germany are weary of bailing out spendthrifts, and spenders like Italy and Greece resent austerity measures imposed on them by their euro partners. Developing rescue packages is an ongoing challenge. But like it or not, Europe realized Tuesday that the euro and other European...

The Eurozone Fights for Survival – Part I

François Godement August 16, 2011
The debt crisis rocking Greece, Portugal or Italy not only threatens the stability of the eurozone, but also raises serious questions about the region’s relations with the world. This two-part series examines the European crisis and its ramifications. In the first article, François Godement, senior policy fellow with the European Council on Foreign Relations, points out that minimal attention is...