A Dialogue with the President of Italy’s Anti-Corruption Authority. Italy’s sluggish growth is at the center of the political debate, as well a key concern for international authorities, given its implications for public debt sustainability. A number of factors can explain Italy’s low growth potential. Most of them refer to the obsolescence of large portions [...]
By imposing new sanctions on Russia, the U.S. has declared “financial warfare” on Russia’s already fragile economy. The U.S. has denied access to the U.S. economy and the U.S. financial system to two major Russian banks and energy companies. (For an explanation of the new and very complex sanctions, click here) It is by no [...]
There is a rush by U.S. Corporations to flee the country for more business friendly locations in Europe. One of the latest is Walgreens, but they were preceded recently by Medtronic, Mylan, AbbVie, Salix and an attempted takeover of AstraZeneca by Pfizer (Wall Street Journal 2014). The process is not new, but it has accelerated [...]
Iraq, Ukraine and other geostrategic hotspots.
Must ReadNouriel Roubini's Global EconoMonitor
In the immediate aftermath of the 2008 global financial crisis, policymakers’ success in preventing the Great Recession from turning into Great Depression II held in check demands for protectionist and inward-looking measures. But now the backlash against globalization – and the freer movement of goods, services, capital, labor, and technology that came with it – [...]
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.