This note reviews monetary and fiscal policies adopted by Japan, the United States and Eurozone periphery countries during the global financial crisis and subsequently. These countries all experienced similar economic problems; high public debt burdens, the deflation tendency, credit traps, inadequate aggregate demand and high unemployment. It is argued below that policymakers anchored their strategic [...]
With the decisive support of Beijing’s leadership, China’s economic reforms are spreading to one of the most critical sectors of employment – the small-and-medium size enterprises (SMEs). China is not known for its resilient small-and-medium-size enterprises (SMEs), as of yet. And still, in August, the SMEs’ PMI figure, which serves as an important indicator of [...]
The euro zone crisis is not back — at least not yet. Recent movements in global markets following concerns about Portugal’s Banco Espirito Santo really had as much to do with market nerves after a long spell of repressed volatility as it did with the state of the bank’s balance sheet. Despite the current calm, [...]
Iraq, Ukraine and other geostrategic hotspots.
NEW YORK – The escalating conflict in Ukraine between the Western-backed government and Russian-backed separatists has focused attention on a fundamental question: What are the Kremlin’s long-term objectives? Though Russian President Vladimir Putin’s immediate goal may have been limited to regaining control of Crimea and retaining some influence in Ukrainian affairs, his longer-term ambition is [...]
Because of rapidly approaching debt constraints, China cannot continue what I characterize as 'investment overshooting' economic polices for much longer (perhaps three or four years at most)...The longer this kind of growth continues, the greater the risk that China reaches debt capacity constraints, in which case the country faces a chaotic economic adjustment.