In The News

IMF Study on Debt Reduction: What It Says, What It Doesn't

William G. Gale and Diane Lim June 24, 2015
International Monetary Fund research concludes that countries should prioritize stimulus spending over debt reduction during times of economic stability. US politicians should not take this as a recommendation to continue deficit spending, suggest William G. Gale and Diane Lim for Brookings. The IMF model relies on two assumptions – that returns on infrastructure are greater than the market rate...

The Blue Amazon

Nathan Thompson and Robert Mugah June 24, 2015
Brazil, the world’s seventh largest economy and South America’s largest, is looking to expand its reach across the Atlantic: “Brazil, in particular, wants to safeguard its on- and offshore natural resources, which the navy calls the Amazônia Azul, or Blue Amazon,” write Nathan Thompson and Robert Mugah for Foreign Affairs. “These include extensive petroleum and gas reserves, as well as fishing...

Three Perilous Options for Greece Facing Europe

Gideon Rachman June 23, 2015
The Greek debt crisis may well destroy the European single currency, argues Financial Times columnist Gideon Rachman: Greece’s debts are immense, and no logical plan is in place for repayment or rapid reforms. If Greece remains in the EU, the nation would be a weak and struggling partner. More EU concessions for Greece would undermine governments in Ireland and Portugal that have endured...

Why It’s So Hard to Predict the Impact of a Greek Default

Alex Rosenberg June 19, 2015
Greece owes more than €240 billion and may default – and may even withdraw from the European Union – if creditors including the EU, especially Germany, and the International Monetary Fund do not provide another bailout. Greek debt is about a third to half that of the US subprime mortgage debt before the global debt crisis struck in 2007. Consequences for the global economy are unknown, but...

New Birth for Social Democracy

Kemal Derviş June 12, 2015
Structural changes in the global economy are driving inequality. Technology has not only replaced many workers in manufacturing and services, but is also transforming the traditional business model. Decentralized organizations hire low paid, temporary workers instead of long-term employees. Uber, which has threatened traditional taxi services, is an example of a decentralized business model. This...

Desperate Millions Flee Poverty, Persecution and Inequality

Joergen Oerstroem Moeller June 11, 2015
The world confronts an immigration challenge as vast numbers flee conflict and religious persecution in the Middle East and South Asia along with stark poverty in Africa and South America. The world has 50 million forcibly displaced people, and millions more leave their homelands in search of opportunity. Widening inequality and demographics, with low fertility rates in wealthy nations and high...

HSBC’s Local Rethink Can’t Shore Up Global Act

Paul J. Davies June 10, 2015
The world has only a few global banks. HSBC, based in the UK, is cutting costs, laying off 50,000 or 10 percent of its workforce and eliminating units in emerging economies like Turkey and Brazil. “HSBC’s targeted returns are beaten by the best local banks in many countries,” writes Paul J. Davies for the Wall Street Journal. “HSBC insists the fight to remain global is worth it. It claims $22...