Austerity measures in Europe have been the topic of a heated and mostly confused debate in the economic world. During the May summit of the leading industrial nations at Camp David, German chancellor Angela Merkel and other European leaders pushed for continued European austerity. Keynesian critics argue that these policies destroy economic growth.

When the G8 major economies convened at Camp David last weekend, the continuing crisis of the euro, common currency of 17 European Union (EU) members, dominated the economic discussions. The agonies of Greece, badly divided in recent parliamentary elections, and forced to vote again on 17 June, were at the forefront.

The United States and its allies and partners must not only understand Iran’s regional strategy and influence but also develop a coherent strategy of their own with which to confront them. Considering the relative economic, political, and diplomatic power of the two sides, it is unacceptable for the United States and its allies to allow Iran even such progress as it has made in these realms.

A new report by the American Enterprise Institute (AEI) and the Institute for the Study of War (ISW) argues that one of the greatest mistakes the United States can make is to imagine that Iranian activities in a given arena--the nuclear program, for example--are isolated from Iranian undertakings in another. The report examines those other areas

How have wage-setting, high tax rates, and business tax policies affected businesses in Sweden?

Corporations built up an extraordinary level of cash reserves during the current expansion. Firms have only recently started to draw down their substantial cash holdings through accelerated shareholder payouts, cash-financed mergers and acquisitions, and increased investment. These developments highlight the strong interest that economists and policymakers have in the interaction...

Predictable future variation in returns does not reflect priced risk factors, but is related to trading costs.