In a post earlier this week, I explained why a majority of economists fear deflation. They argue that deflation disrupts the operation of financial markets and labor markets in a way that risks touching off a downward spiral. At the same time, they say, deflation weakens the power of monetary policy to reverse the downward [...]
The proposed Asian infrastructure bank could galvanize growth in emerging Asia and boost lingering global recovery. According to Western media, the Asian Infrastructure Investment Bank (AIIB) is to rival the World Bank and the Asian Development Bank (ADB). In reality, the idea of the AIIB was put forward more than a year ago; not to [...]
It is time for the 2014 Globie—a (somewhat fictitious) prize I award once a year to a book that deserves recognition for its treatment of the consequences of globalization. (Previous winners can be found here.) The financial turmoil of the last week makes this year’s award-winner particularly appropriate: Martin Wolf for The Shifts and the Shocks: What [...]
Europe's Flirtation With Deflation
A major threat to the global economy.
Must ReadThoughts From Across the Atlantic
Ukraine faces interdependent military, political, and economic problems of enormous magnitude. Its territory has been invaded and occupied by a powerful neighbor, and armed separatists and Russian forces control territory in eastern and southern Ukraine. Since April of this year, more than 3500 people have died from the violence according to UN human rights observers. [...]
For the next three weeks Neves will enjoy equal air time, almost tripling his exposure from before the first round. The domestic and international business communities have already thrown their support behind him, and many hope Silva will endorse him.