By N. GREGORY MANKIW, CHRISTINA D. ROMER; TYLER COWEN; ROBERT H. FRANK; ROBERT J. SHILLER and RICHARD H. THALER. Believe it or not, times are getting better. At least that’s what the dry statistics keep telling us. Industrial production, G.D.P. — the kind of figures that Washington and Wall Street sweat over — suggest that [...]
Overview. It is crunch time for the Group of 20. If things go well, the Cannes summit will mark the moment the “premier global economic forum” acts to defuse the economic risks being run in the world. The alternative is to allow them to fester, contributing towards another destructive financial and economic crisis. Underlining the [...]
The pattern has grown tiresomely familiar. Bond markets shift sharply against weak euro-zone members. Leaders hold a crisis summit to save the euro with more forceful rescue measures. The initial euphoria lasts a few weeks, a few days or even just a few hours—and the cycle begins once again. Can Europe’s politicians ever break it? [...]
The IMF has published the 2011 edition of its World Economic Outlook The recovery is gaining strength, but unemployment remains high in advanced economies, and new macroeconomic risks are building in emerging market economies. In advanced economies, the handoff from public to private demand is advancing, reducing concerns that diminishing fiscal policy support might cause [...]
23 May. First National Bank, South Africa, Comment: Brave Sick Europe. Over the years we have at times heard about the ‘Sick Man of Europe’, designating so anyone straggling in the European ranks, especially if formerly in the lead. There is here an element of schadenfreude (malicious enjoyment of others’ misfortune). So Germany in its [...]
The yuan is displacing the dollar as a key currency
The rise of the yuan: Turning from green to red. In Tokyo last week the bigwigs of international finance paid close attention to a speech by Ben Bernanke, chairman of America’s Federal Reserve. His speech urged them, in effect, to pay less attention. Many policymakers in emerging markets complain that Fed easing destabilises their economies, [...]