Policymakers must now step up to the challenges of a new era characterized by low growth and high uncertainty. Yet despite these revisions, experts are directing their attention to longer-term economic prospects, rather than short-term uncertainties.
The rampant growth experienced by many emerging economies in previous decades has slowed down across the board. Some countries are managing the downturn well, while others seem to be skidding.
While comprehensive assessments of US banks helped America rebound from the financial crisis, Europe is hobbled by a less dynamic economic situation. What’s needed is an explicit commitment to pro-growth policies.
The G-20 must now coordinate policy actions to address its longer-term goals, rather than only responding to short-term emergencies and volatility. The legacy of the Australian G-20 presidency might be the revival of a more pragmatic, effective and forward-looking forum.
The ECB has been slow in responding to the financial crisis that has persisted for years. Its most recent policy package is an important step in accommodating the eventual economic recovery in the eurozone.
In recent years sovereign debt crises have posed a number of dilemmas. As a result, the IMF and various central banks have come up with an array of approaches to governing them.
The latest IMF ministerial meeting drew attention to various pitfalls in the current recovery. One of the more worrisome was persistently low inflation in developed economies and a slowdown in growth in the emerging countries.
A plan for continuing China’s balancing act between socialism and capitalism was laid out in November by Xi Jinping. If implemented correctly it has the potential to be as decisive as anything since Mao’s exit from the scene.
Europe’s leadership role in global economic governance is not commensurate with its economic size and significance. So the US will continue as leader until the eurozone begins to integrate politically as well as economically.
Washington is the hub for an array of international organizations, a place where ministers from all over the world come and try to give some direction to what would otherwise be political and economic chaos in a world buffeted by crises.
Canada’s banking system could be a good model for the eurozone as it gears up for a banking union. Certain features could be easily adapted, while others would require too much loss of sovereignty.
Looking back at the 2007-2008 global financial crisis, economists have tried to understand the factors that caused such a perfect storm and how to guide international regulatory reform in order to prevent another such crisis.
What works for one country may not work for other countries. Economists are now trying to accurately quantify why similar fiscal policies result in a more negative impact on struggling economies than on sounder ones.
With the choice of an old Washington hand to take the reins at Treasury, Obama looks to his trusted Chief of Staff, Jack Lew, to focus on domestic policy.
Grim near-term global economic forecasts present challenges for the burgeoning economies of Africa. Nevertheless, the growth that many of them have been experiencing will likely continue, and a broad range of possibilities lies ahead.
Now that his second term is confirmed, Obama faces some urgent challenges: namely, the “financial cliff,” the recession in Europe and relations with China. How he deals with these elements will effect the rest of the world.
Europe never wanted too much IMF involvement in its economic affairs. Now the ECB sees how IMF engagement in its OMTs can serve as a safeguard for its own independence. But in what capacity will the IMF get engaged? And what happens when countries falter?
As financial markets wait with bated breath to see what steps Europe will take, or refuse to take, in an effort to resolve its sovereign debt crisis, both US presidential candidates are laying out their strategies for the Old Continent.
So far India has been playing a supportive role in global fora and has not been a strong proponent of any particular position, with perhaps the exception of an International Monetary Fund reform.
Europe and the US, once the driving forces of the world economy, are now upsetting the balance. Europe is now hostage to the position of its strongest member, whose isolation has contributed to America’s decreased engagement.
The more a country invests in defense, particularly for export, the more leverage it has over countries that either buy the technology or need to join in a partnership. As such, the US will continue to have much influence over a large part of the world.
Will a new World Bank president mean a new role for the institution? Considering the steadily increasing number of players in the area of development funding, it will have no choice but to adapt.
As China’s economy comes to dominate global trade, its currency is on the way to becoming an international reserve. Yet many factors still stand in the way. What will it take for China to attract investors to the yuan?
The globalized economy is struggling through a systemic crisis. As one of the few institutions created to deal explicitly with such events, the International Monetary Fund is reasserting itself. At the same time, it must redefine its own purpose in a changing world.
European leaders have been scrambling to deal with the crisis, and some headway has been made. However, actions taken thus far may set the conditions for a long period of economic contraction.