Attempts at austerity and deleveraging in Europe have converted an economic problem into a political dilemma, with leftist governments rising against Germany's austerity-laced rescue packages. Germany now faces a tough economic decision that will involve choosing between a breakup of the current euro system and a movement toward a common fiscal policy in Europe.

The Reserve Bank would do well to review China, Korea, and Taiwan's exchange rate management policies and to take a leaf out of their books to pave the way for export led growth.

In his April Economic Outlook, American Enterprise Institute (AEI) economist John Makin assesses the risks the world faces as a result of China’s slowing economy. With the coming transition in Chinese leadership, it is unlikely that the world's second largest economy will alter its policies to stimulate growth. As a result, the whole world may feel China's pain.

If financial stability was at the top of the central banks' agenda by 1999, one can reasonably wonder what they were doing about it from 1999 to 2007.

Could the Renminbi replace the dollar as an international medium of exchange? In his latest Economic Outlook, John Makin explains why such fears are premature and unwarranted.

There should not be an Americas currency bloc

Do the outlooks for the Japanese and European economies provide the basis for either the Japanese yen or the euro to replace the US dollar any time soon as the world's leading international reserve currency?

"Engineering a successful transition out of deflation is one of the most challenging aspects of monetary policy, but the Bank of Japan just might be able to do it this time."