French Banks Play Russian Roulette

In the fourth quarter of last year, with tensions rising between Russia and the West over Ukraine, U.S., German, UK, and Swedish banks aggressively dialed down their credit exposures in Russia.  But as the graphic above shows, French banks, which have by far the highest exposures to Russia, barely touched theirs.  At $50 billion, this […]

Skill Mismatches in the U.S. Labor Market

The slow recovery in the United States from the Great Recession has been characterized by an unusually high unemployment rate. Observers have disagreed about the relative importance of skill mismatch and insufficient aggregate demand as causes of high unemployment. The two explanations are not mutually exclusive, but Paul Krugman (2014) has taken a strong position […]

Reducing Risks in Asia With Macroprudential Policies

By Edda Zoli: Booming real estate markets, rapid credit growth and—at least before the Fed’s tapering announcement last year—sustained capital inflows have raised financial stability challenges across many parts of Asia. To address them, policymakers have increasingly made use of macroprudential policies that address the stability of the financial system as a whole rather than that […]

Global Ground Zero in Asia

The biggest geopolitical risk of our times is not a conflict between Israel and Iran over nuclear proliferation. Nor is it the risk of chronic disorder in an arc of instability that now runs from the Maghreb all the way to the Hindu Kush. It is not even the risk of Cold War II between […]

Great Graphic: GDP Per Employed Person

This Great Graphic is part of an interactive chart posted on Bruegel by Michele Peruzzi, Marco Antonielli, Silvia Carrieri and Carlos De Sousa.  It depicts the output per employed person, which is a similar, but different than GDP per capita.  It is a purer measure of productivity. The graph is not that surprising.  We know US output is higher now […]

Central, Eastern, and South-Eastern Europe: Safeguarding the Recovery as the Global Liquidity Tide Recedes

By Reza Moghadam, Aasim M. Husain, and Anna Ilyina (Version in Türk) Growth is gathering momentum in most of Central, Eastern, and South-Eastern Europe (CESEE) in the wake of the recovery in the euro area. Excluding the largest economies—Russia and Turkey—the IMF’s latest Regional Economic Issues reportprojects the region to grow 2.3 percent in 2014, almost twice last year’s pace. […]

America as a Tale of Two Neighborhoods

Welcome to what Arianna Huffington has aptly called Third World America — we’d expect riots and revolution in any foreign city with NYC’s level of economic and racial segregation. Both the affluent and the impoverished in NYC can ride the same mass transit system (AKA the subway) and might work in the same office buildings. But at […]

Why Is Paul Krugman Frustrated With Heterodoxy?

The blog-O-sphere has been lit up in recent days with Krugman’s announcement that he’s frustrated by the gloating of Heterodox Economists. He claims that with good hindsight, all the mainstream economists who “never saw the crisis coming” can use their flawed textbook approach to explain what happened. Gee, that makes me feel a lot better! […]

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