The rescue offers Greece the opportunity for an extended struggle to settle for slow economic growth for an extended period. This debt crisis is not over...

Legislation to raise the debt ceiling will give the government headroom to operate until 2013. But a temporary ceasefire in this fiscal war will not address the country's longer-run problems. The rating agencies are therefore justified in reconsidering America's triple-A credit rating.

En los últimos diez años, las autoridades de política en distintos países emergentes han optado por limitar las fluctuaciones del valor de sus monedas respecto al dólar americano. En este documento se utiliza una relación de paridad de tasas de interés para identificar las fuentes potenciales de presiones alcistas en el valor del tipo de cambio y para explicar las opciones de política orientadas a contener dichas presiones.

Japan will need to move quickly and sell its stock of foreign reserves if its going to facilitate recovery.

Sudden stops and reversals in capital flows are the stuff of policymakers’ nightmares. The last 20 years of research shows that the capital-inflow dilemma is not an external problem–it is an eternal one.

Vincent and Carmen Reinhart present evidence that the view that modest alterations to monetary policy have vast consequences is inconsistent with theory and not supported by evidence.

The hard job of addressing the unresolved problems in the mortgage market remains unaddressed and financial authorities have to end the charade that the problematic loans made as the real-estate bubble inflated will be repaid.

Reinhart and Reinhart find that economic growth is slower in the decade following a macroeconomic disruption, and extend their results to show that a faltering of economic recovery is not uncommon after a severe financial shock-although this can often be ascribed to exogenous events.