Part 1: Fiscal Failure

Part 1: Fiscal Failure

photo: Nicolas Raymond The stubborn refusal of the global economy to respond to policy initiatives is reminiscent of an obstreperous teenager. There is now renewed focus on using government spending on infrastructure to stimulate the global economy. It is not clear whether such a policy will work. Efficacy of stimulatory fiscal policy depends on a number […]

Whither Emerging Markets Foreign Exchange Reserves

Whither Emerging Markets Foreign Exchange Reserves

After a exponential rise in foreign exchange reserves accumulation by emerging markets from 2000 onwards, the tide seems to have turned south since mid-2014. Changes in capital flows and commodity prices have been major factors behind the inflection, with the new direction expected to remain, given the context of the global economy going forward. Although […]

US Fed: It Is Not “The When”, It Is How Long It Will Take to Normalize Policy

Key takeaway – On September 16-17, the US Federal Reserve (Fed) will take a difficult decision: to hike rates for the first time in nearly a decade – or wait. It is a close call: US domestic economic conditions could justify tighter policy but remain fragile. While the GDP is growing, inflation is below the […]

A Coordinated Fiscal Response to Revive the Euro Area Economy

The worsening of the economic situation in the euro area raises serious questions about the capacity of policymakers to get the situation under control.  Member States have limited room of manoeuvre to implement a counter-cyclical budgetary policy under the Stability and Growth Pact (SGP).  The European Central Bank (ECB) is confronted the zero bound interest […]

Renewing America Progress Report: Federal Debt and Deficits

The CFR Renewing America Federal Debt and Deficits Scorecard It’s not often that one hears the phrase “European steeliness.” But while the United States continues to punt its serious tax and spending problems ever farther down the field, Europe’s big economies have actually done something about fiscal challenges that were even bigger than those facing […]

Can Japan Afford to Cut Its Corporate Tax?

By Ruud de Mooij and Ikuo Saito: (Versions in 日本語) It is no surprise that, as part of its revised growth strategy presented in June, the Japanese government has announced it will reduce the corporate income tax rate. At more than 35 percent for most businesses, the Japanese rate is one of the highest among the industrialized countries of […]

Congress’s Job Training Overhaul: A Modest Step in the Right Direction

This is a guest post by Robert Maxim, research associate, competitiveness and foreign policy, for the Council on Foreign Relations studies program. Any bill that receives the support of both Ted Cruz and Harry Reid is notable in its own right. When that bill takes steps to streamline the complex web of U.S. worker training […]

Fixing International Corporate Taxation—Not Just a Problem for Advanced Economies

By Michael Keen: It’s hard to pick up a newspaper these days (or, more likely for readers of blogs, to skim one online) without finding another story about some multinational corporation managing, as if by magic, to pay little corporate tax. What lets them do this, of course, are the tax rules that countries themselves set. A […]

Momentous EU Summit

There are two big issues for the EU heads of state meeting at the end of this week: A review of the fiscal plans and structural reforms of member countries and the appointment of the EC President, following the recent EU parliamentary elections. To the chagrin of many observers, especially in Berlin, the attempt some countries, […]

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