The IMF is urging the ECB to implement massive quantitative easing, but such a course of action is unlikely to promote short-term economic growth and would risk creating bigger bubbles in many asset markets.
Developments in the Middle East and Ukraine show Europe needs to improve its energy policy or face serious economic consequences.
Despite an electorate that is increasingly hostile to the European project and the risk that Europe could be drifting towards Japanese-style deflation, European policymakers remain complacent.
The U.S. dollar will remain the world's reserve currency because no other major currency offers such liquidity, depth of financial markets, and store of value.
Robert Gordon has painted a dark picture of the world’s long-run economic growth prospects. But if the past is any guide, he will likely prove to be far too pessimistic about the human capacity to innovate.
Several developments should cause the U.S. Treasury to reverse itself in favor of a smaller International Monetary Fund.
The new head of the Federal Reserve is imprudently dismissive of concerns about recent international economic developments.
With European policymakers complacent, it is unlikely that progress will be made this year in reducing Europe’s record unemployment rate or in preventing a further fragmentation of its politics.
As Greece's political and economic conditions worsen, the conventional wisdom about Greece never abandoning the euro will be sorely tested.
Easy global liquidity from quantitative easing in the United States has masked deflation and public debt vulnerability in the European periphery, and the European Central Bank shows little sign of pursuing policies to address these threats.
Angela Merkel’s impressive reelection win indicates little will change in Germany’s Europe policy.
The president of the ECB should not believe his own hype: Europe’s economic crisis is far from over.
Without bold action from the European Central Bank, it is difficult to see how the European periphery can avoid sinking ever deeper into economic recession in the months ahead.
Here are the likely lessons future historians will draw from Cyprus’s sorry experience in the euro.
Any calm bought by the IMF-EU bailout package for Cyprus will be short-lived. Cyprus is all but certain to experience an economic collapse over the next two years, and the country will again question whether it should remain in the euro.
One can only hope global policymakers wake up to the risks of a strengthening euro before it is too late.
German Chancellor Merkel will want a quick resolution of the Cypriot economic and financial crisis so that a bailout does not become a domestic political issue ahead of her reelection bid.
Far from fading, it is all too probable that the European crisis will intensify over the course of the coming year.
A triumph of market forces rather than government planning.
Spain is the euro area’s fourth-largest economy. Bad government policy threatens the whole euro project and the global economy.