Why Germany Cannot Save the Euro

As Charles Wyplosz has recently written, the euro zone’s rescue strategy adopted in May 2010 has failed. Like his column, this column argues that it was folly for the euro zone to believe the bailout approach would succeed because the problems in the euro zone run much deeper than just Greece. Further, this column argues […]

More on the Debt Crisis in Europe and the US

I was on the Alyona Show panel these past two Mondays talking to Alyona and Reason’s Anthony Randazzo about the debt crises in the US and Europe. As much as we tried to find something we could disagree on, we ended up agreeing a lot in both cases. As to the root causes of both […]

Full Text: Moody’s Downgrades Spain’s Government Bond Rating to Baa3 from A3, on Review for Further Downgrade

Editor’s note: The following is the press release issued by Moody’s after the ratings agency downgraded Spanish sovereign debt. Global Credit Research – 13 Jun 2012 London, 13 June 2012 — Moody’s Investors Service has today downgraded Spain’s government bond rating to Baa3 from A3, and has also placed it on review for possible further […]

Full Text: Janet Yellen – Perspectives on Monetary Policy

Editor’s note: The following is the text of a much anticipated speech Fed Vice Chair Janet Yellen gave at the Boston Economic Club Dinner, in Boston, Massachusetts on monetary policy last night. Yellen emphasized the need for the Fed to remain accommodative. As the speech is long, we have underlined the most important parts of […]

Full Text: George Soros on Reflexivity and a Potential Eurozone Breakup

Editor’s Note: The following is the text of recent remarks on the European sovereign debt crisis made by legendary investor George Soros at the Festival of Economics in Trento, Italy. Ever since the Crash of 2008 there has been a widespread recognition, both among economists and the general public, that economic theory has failed. But […]

Why Can’t People Understand National Accounting?

I was on RT’s Capital Account last night talking to Lauren Lyster about the euro zone debt crisis. At the end of the show, we came up against the deficit problem and the question about how it should be solved. I get frustrated by this topic because the whole framing of the problem presented in […]