Russia and the West have fundamentally different views on Russia's legimitate interest in Ukraine. The resulting escalating sanctions are now threatening economic growth for all of Europe.
On India's Independence Day, Narendra Modi, the country's prime minister, delivered a forceful extemporaneous speech, calling for national unity in fighting poverty, improving sanitation, and protecting women from sexual violence. There was one area in which the speech fell short, though: economics. Contrary to Modi's campaign promises, his address included barely any pro-market content.
If European policymakers do not move quickly on issues of fiscal policy and a European banking union, the world should brace itself for another round of the European sovereign debt crisis once interest rates begin to rise.
In the game of telephone, a word or sentence becomes unrecognizable if enough people repeat it, especially when people are not trying hard to get it right. Jared Bernstein, Kenneth Austin, and Paul Krugman are playing telephone and misrepresenting the relationship between balance of trade accounts, GDP, and jobs.
The Export-Import Bank plays a useful role in sustaining a truly global marketplace in which firms compete based on productivity and service, without being subject to the frills of fussy governments. It deserves to be reauthorized.
Although supporting the Ukrainian economy may be a worthwhile geopolitical goal, relying on the IMF to provide funding for Ukraine risks undermining the IMF's credibility as a conditions-based lender and exacerbating the moral hazard problem for private creditors.
Washington and Beijing are ostensibly having serious discussions of a bilateral investment treaty to improve transparency and other aspects of the trans-Pacific investment environment. One hopes it's not really true, that the American side is just humoring the Chinese, because it's impossible at present to see such an agreement benefiting the US.
We welcome you to join us as a panel of economists discuss US wage and price prospects in the coming months and the implications for the Federal Reserve’s current unorthodox monetary policy.