How United Is the European Union?

How United Is the European Union?

photo: Theophilos Papadopoulos The European Union is not very united today. The refugee crisis that has brought about restrictions on the movement of people among members is the immediate threat to unity. The Greek debt crisis and other issues related to the use of the Euro are a second fundamental economic threat to unity. The forthcoming UK […]

What Can the U.S. Learn from Big Government in Sweden and Denmark?

What Can the U.S. Learn from Big Government in Sweden and Denmark?

photo: Artiom P Leaders of the Democratic Party in the United States have moved to the left of the political spectrum (Wall Street Journal). Bernie Sanders, who describes himself as a democratic socialist, has mounted a successful campaign against Hillary Clinton. He has identified Denmark and Sweden as examples of countries with larger government sectors that […]

Fiscal Federalism: The Eurozone Is Not the USA

Fiscal Federalism: The Eurozone Is Not the USA

photo: Stephen Little The current crisis in the European Monetary Union (EMU) has led to comparisons between the EMU and the United States as currency unions. There are similarities and differences, but one similarity is that they are both federations in the sense of a higher level government interacting with a lower level government. They both […]

On China as a Currency Manipulator

On China as a Currency Manipulator

photo: Steve Passlow Allegations Of Currency Manipulation Accusing trading partners of currency manipulation has become fashionable among American politicians. Donald Trump has accused China of manipulating the Renminbi to the disadvantage of Americans. Hillary Clinton recently announced her opposition to the TransPacific Partnership  trade agreement because it lacks sufficient protection against currency manipulation. In this age […]

An Important Step for China and the World

An Important Step for China and the World

photo: David Dennis On 30 November the Board of the IMF decided to include the Chinese RMB in the Special Drawing Rights (SDR) basket from 1 October 2016. SDR is the unit used in transactions between IMF member states and the Fund. RMB will thus become the fifth currency in this basket of global reserve currencies, […]

Government Debt in Japan and Euro Area: Actions Speak Louder than Words

Government Debt in Japan and Euro Area: Actions Speak Louder than Words

photo: flickr Fiscal Rules in Japan  Fiscal rules, such as a quantitative debt limit, have been proposed to restrain the size of government debt. However, experience has shown that passing laws or issuing rules has little economic effect, unless they are enforced systematically and without delay. This point was illustrated last week by Kenichi Ueda […]

Germany Is Not Volkswagen, but the Wake up Call Should Not Be Ignored

Germany Is Not Volkswagen, but the Wake up Call Should Not Be Ignored

photo by: Adam Clarke Dalia Marin recently published a Project Syndicate column titled “Germany is not Volkswagen”, which basically tries to portray the fraud by Volkswagen that was recently uncovered by the US authorities as an isolated case and stress the strength of the German manufacturing culture. Germany is not Volkswagen, indeed. BMW, for example, passed […]

"Video Killed the Radio Star": Why Hasn’t Technology Destroyed All Jobs?

Destruction of jobs by machines is an old issue that has appeared several times in history beginning with the famous Luddite resistance to the introduction of textile machinery in England early in the Industrial Revolution. It arose again during the 1960s when President Lyndon Johnson appointed the Bowen Commission to study the technology/job loss nexus […]