Part 4: QE Forever?

Part 4: QE Forever?

photo: 401(K) 2012 Compounding the problems of ineffectiveness and toxic side effects, current policies cannot be reversed easily, if at all. Withdrawing fiscal stimulus would lead to sharp slowdowns in economic activity. Reduction in government services and higher taxes accelerates contraction in disposable incomes, especially in an environment of stagnant incomes and uncertain employment. In turn, […]

Part 3: The Ineffectiveness of Economic Policy

Part 3: The Ineffectiveness of Economic Policy

photo: Nicolas Raymond While the central bank and government policies have stabilised conditions, they have not restored growth or created sufficient inflation to address the world’s debt problems. As Helmuth von Moltke, a 19th century head of the Prussian army, observed: “No battle plan ever survives first contact with the enemy”. Given that the bulk of […]

Learning to Love Stagnation

Learning to Love Stagnation

Growth Isn’t Everything— Just Ask Japan From Wall Street to K Street to Main Street, pessimism about the global economy has become commonplace. The world economy may have nally emerged from the nancial crisis of 2008, but according to conven- tional wisdom, it remains fragile and unsteady, just one disruption away from yet another perilous downturn. […]

Are Stars Aligning for Clean-Energy Financing?

Are Stars Aligning for Clean-Energy Financing?

photo: Maryland GovPics How sovereign and hybrid funds may help address climate change  One of the biggest bangs at the opening day of the Paris COP21 climate summit was without doubt the dual financing announcements by the Breakthrough Energy Coalition, led by Bill Gates and other high-net worth individuals, and the Mission Innovation, whose signatory governments have […]

Seven Questions About Climate Change

Seven Questions About Climate Change

Climate change is at the top of the agenda of policymakers as they gather in Paris for the United Nations Climate Change Conference, COP21. Climate change is a threat to the very survival of humanity. Notwithstanding the severity of the threat, actions to halt climate change have been scant and uneven across countries. This Q&A […]

APEC 2015: Change Is in the Air

APEC 2015: Change Is in the Air

Despite diplomatic missteps, APEC 2015 could pave way to regional peace and development. The triangular perspectives of Washington, Beijing and Manila tell the story. -Dan Steinbock Washington’s exclusive policies In Washington’s view, President Obama’s presence in the Asia Pacific Cooperation (APEC) Summit was vital to underscore America’s sustained commitment to the region. With its recovery, […]

Tackling Corporate Raiding in Ukraine

Tackling Corporate Raiding in Ukraine

photo: dmytrok Ukraine, together with Syria, are today’s geopolitical hotspots, where battles of influence between Russia and the West have been raging for years. Almost 2 years ago, Ukrainians opted for the Western path of development, following the‘Euromaidan’ protests that ousted the ruling Yanukovych government. Since turning away from Russia at this pivotal moment, Ukraine has […]

New Five-Year Plan to Promote Reforms, Consumption

New Five-Year Plan to Promote Reforms, Consumption

photo: Thomas Depenbusch As China’s growth is decelerating, Chinese purchasing power is accelerating. The next five-year plan will boost the change. Only a few years ago, China still enjoyed double-digit growth. According to third-quarter data, the Chinese economy grew 6.9 percent year-on-year. As a result, some observers have concluded that the Chinese economy is in trouble, Chinese […]

Even with IMF Aid, Risks Loom Large for Ukraine

Even with IMF Aid, Risks Loom Large for Ukraine

Finance Minister Jaresko sees debt restructuring and economic reforms as steps toward ‘return to growth in 2016’ In April, ratings agency Standard & Poor’s placed a negative outlook on Ukraine, citing a “deteriorating macroeconomic environment” and warning of a likely default on foreign-currency central government debt. The assessment was a tangible indicator of the risks […]