Markets

Though many optimists now believe that a combination of lower oil prices, rising auto sales, recovering house prices, and a resurgence of U.S. manufacturing can refuel America’s economic recovery, the reality is the opposite: For five key reasons, the U.S.’s...

The Olympics is no longer all about sport, but rather a corporate jamboree for the elite super-rich. The same pattern repeats itself every time as host nations are forced to follow the International Olympic Committee’s rulebook. Ever since French baron...

Over the years, politicians in advanced economies have tended to favour fiscal expansion during economic booms and austerity during recessions. But while a pro-cyclical policy is understandable from a political perspective, it also explains why these economies are rarely prepared...

All countries cannot gain a greater share of global aggregate demand at the same time. But what may look like a zero-sum game is not: if countries increase productivity with the aim of boosting their tradable sectors' relative productivity and...

At their meeting at the end of June, European leaders acknowledged for the first time the multiple dimensions of the crisis, accepting that austerity – putting everyone’s house in order – will not suffice. What is still missing, however, is...

Almost two decades ago, the World Bank published its landmark study “The East Asian Miracle,” analyzing why East Asian economies grew faster than emerging markets in Latin America, Africa, and elsewhere. But it is necessary to re-assess economists' focus on...

The current economic climate is likely to produce deep disparities in economic performance over the long-term. Ultimately, while some countries will be far more adversely affected than the other, those that do (relatively) better will share three key characteristics: relatively...

As a reformed Europe starts growing, parts of it might experience US-style inequality. But Europe would be far worse off if it were to avoid serious reform and lapse, Japan-like, into egalitarian and genteel decline.CHICAGO – To understand how to...

EU states lose an estimated €1 trillion in potential revenue every year from tax evasion and avoidance activities. Much of this amount, it turns out, has been squirreled away to offshore tax havens – known otherwise as “treasure islands”. Can...

Crises are usually defined by sustained economic decline, high and long-term unemployment, poverty, rampant inflation, a precipitous fall in the exchange rate, fiscal deficits, high borrowing costs, and political dysfunction. But only a handful of "misery indices" are present in...

Summer crises are a familiar feature of European history – and of financial history. Often, addressing some technical issue was not enough to resolve a major political problem, which is true today as well, with Europe’s current crisis reflecting exactly...

The dependence of modern economies on large-scale computer systems presents a new age risk to the global economy. Unfortunately, as the 2008 financial crisis demonstrated, most politicians are still congenitally incapable of making difficult choices until the risks actually materialize....

With US unemployment still above 8 percent, jobs have become a major focus in the presidential campaign. But, while President Barack Obama’s proposals are convincing, none of Mitt Romney’s would do much in the near term – and some could...

In the seven years since Beijing promised with increasing urgency to rebalance its economy, China has unfortunately managed to rebalance externally without rebalancing internally. China’s growth has been propelled by state-driven domestic investment, rather than consumption, and despite the availability...

The EU summit, held in Brussels last week, managed to bring about some much needed, albeit temporary, relief for the euro. Nevertheless, the region’s fundamental weaknesses remain unresolved and confidence in Europe’s periphery is now waning. The EU summit, held...