Is Capitalism Doomed?
Roubini, Nouriel. The massive volatility and sharp equity-price correction now hitting global financial markets signal that most advanced economies are on the brink of a double-dip recession. A financial and economic crisis caused by too much private-sector debt and leverage led to a massive re-leveraging of the public sector in order to prevent Great Depression […]
Current-account imbalances: Can structural policies make a difference in Germany?
Bornhorst, Fabian & Ivanova, Anna. The German current-account surplus peaked at 7½% of GDP in 2007, coinciding with the emergence of imbalances elsewhere. This column argues that these large imbalances in large part reflected a booming world economy rather than structural factors. It adds that any sustainable rebalancing would require an ambitious reform agenda aimed at […]