New York Times (December 6)
The latest Merkozy solution demanding Euro nations work to balance budgets or face sanctions is “the wrong fix…. The Franco-German recipe will exacerbate Europe’s fundamental problem: lack of growth.”
Wall Street Journal (November 30)
Germany is unfairly getting blamed for the Eurozone crisis. “The reality is that the Germans—along with the Dutch and the Finns—are the rare Europeans who understand that saving the euro requires more than a blank check. It requires a new political commitment to better economic policy…. Money alone won’t solve Europe’s more fundamental debt and growth problem.”
Germany is unfairly getting blamed for the Eurozone crisis. “The reality is that the Germans—along with the Dutch and the Finns—are the rare Europeans who understand that saving the euro requires more than a blank check. It requires a new political commitment to better economic policy…. Money alone won’t solve Europe’s more fundamental debt and growth problem.”
The Economist (November 19)The Economist (November 19)
Japan’s lost decades are not so bad when seen in light of a decreasing population. “In aggregate, Japan’s economy grew at half the pace of America’s between 2001 and 2010. Yet if judged by growth in GDP per person over the same period, then Japan has outperformed America and the euro zone.”
Japan’s lost decades are not so bad when seen in light of a decreasing population. “In aggregate, Japan’s economy grew at half the pace of America’s between 2001 and 2010. Yet if judged by growth in GDP per person over the same period, then Japan has outperformed America and the euro zone.”
Tags: GDP, Growth, Japan, Lost decades, Population, U.S.
Institutional Investor (November 1)
Iceland has bounced back faster than expected. Its top three banks collapsed in 2008, leaving the country in shambles. “But Iceland fought back—and won.” While its economy remains fragile, the Organization for Economic Cooperation and Development (OECD) now predicts Iceland will grow by 3% in 2012. “If there’s a lesson, it’s …that Iceland is in better shape than Ireland partly because it let its banks go bust.”
The Economist (October 21)
By the end of October, the world’s population will reach 7 billion, just 12 years after hitting 6 billion in 1999. Would policies supporting slower population growth help solve pressing environmental problems? Probably not. “The populations that are rising fastest contribute very little to climate change. The poorest half of the world produces 7% of carbon emissions. The richest 7% produces half the carbon. So the problem lies in countries like China, America and Europe, which all have stable populations. Moderating fertility in Africa might boost the economy or help stressed local environments. But it would not solve global problems.”
Tags: 7 billion, Emissions, Environment, Growth, Population
New York Times (September 28)
“The world has barely dug out of recession and the global economy is again slowing dangerously. Most leaders seem eager to make things even worse.” China should let its currency rise. The U.S., Germany, Britain and other rich countries should be spending to spur growth. Instead, everyone seems to be doing exactly the wrong thing, which “is what caused the Great Depression.”
“The world has barely dug out of recession and the global economy is again slowing dangerously. Most leaders seem eager to make things even worse.” China should let its currency rise. The U.S., Germany, Britain and other rich countries should be spending to spur growth. Instead, everyone seems to be doing exactly the wrong thing, which “is what caused the Great Depression.”
Tags: Currency, Economy, Great Depression, Growth, Spending
Wall Street Journal (November 24)Wall Street Journal (November 24, 2010)
Greece, Ireland, Portugal…who knows which country is next. The EU’s stabilization fund for euro-zone members was established with the hope that the €750 billion life preserver would reassure markets and never need to be used. Now, Ireland alone will cost up to €100 billion. Unless the EU helps “its member countries return to growth,” the fund may get used up very quickly.
Greece, Ireland, Portugal…who knows which country is next. The EU’s stabilization fund for euro-zone members was established with the hope that the €750 billion life preserver would reassure markets and never need to be used. Now, Ireland alone will cost up to €100 billion. Unless the EU helps “its member countries return to growth,” the fund may get used up very quickly.
Tags: Euro crisis, Growth, Ireland, Stabilization fund
Institutional Investor (October)
U.S. companies are playing it safe and wasting “growth opportunities in an innovation-hungry international marketplace.” They should be investing in new technologies and growth. The impact will be felt across the economy. “Risk aversion is squandering what could be the last great opportunity for a U.S. innovation revolution – an era that could build shareholder value and insulate us from future financial crises.”
Tags: Growth, Innovation, Risk aversion, Shareholder value
New York Times (August 11)
Tuesday’s Federal Reserve statement “sparked a global sell-off in stocks on Wednesday.” Growth is now expected to be less than 2%. The Fed has indicated that it will do what it can, namely by keeping interest rates near zero and buying treasuries. This isn’t enough, but the government is unlikely to increase stimulus spending. The New York Times laments “the economy needs more and better help than it is getting.”