The Great Debate

from Anatole Kaletsky:

Stock markets set to take off as Europe, Asia abandon austerity

By Anatole Kaletsky
November 28, 2014

A pedestrian walks past an electronic board showing Japan's Nikkei average outside a brokerage in Tokyo

The Great Divergence is a term coined by economic historians to explain the sudden acceleration of growth and technology in Europe from the 16th century onward, while other civilizations such as China, India, Japan and Persia remained in their pre-modern state. This phrase has recently acquired a very different meaning, however,  more relevant to global economic and financial conditions today.

Are too-big-to-fail banks being cut down to size?

By Charles R. Morris
August 7, 2014

Financial institution representatives are sworn in before testifying at the Financial Crisis Inquiry Commission hearing on Capitol Hill in Washington

The massive $16-billion mortgage fraud settlement agreement just reached by Bank of America and federal authorities — only the latest in a string of such settlements — makes it easy to lose sight of what good shape banks are in.

Fed tightening will help stem inequality

By Alexander Friedman
May 12, 2014

The Federal Reserve Building is reflected on a car in Washington September 16, 2008. REUTERS/Jim Young

from The Great Debate UK:

Swift action needed to curb tapering impact on emerging markets

By Guest Contributor
September 18, 2013

--Shaukat Aziz is the former prime minister of Pakistan. The opinions expressed are his own.--

It’s too soon to taper

By Michael Maiello
September 16, 2013

The chatter has it this week that the U.S. Federal Reserve Bank will allow its $85 billion a month bond buying program to wane, with the eventual death of quantitative easing and a return to economic normalcy. Not only is it too soon for the Fed to back off, it’s too soon to even be discussing it. The global economy is extraordinarily fragile. We need solutions that are more radical than QE, not a retreat into orthodoxy.

Stubborn national politics drag down the global economy

By Gordon Brown
January 18, 2013

Four years ago world leaders, meeting in the G20 crisis session, agreed they would all work to move from recession to growth and prosperity.  They agreed to a global growth compact to be delivered by combining national growth targets with coordinated global interventions. It didn’t happen. After the $1 trillion stimulus of 2009, fiscal consolidation became the established order of the day, and so year after year millions have continued to endure unemployment and lower living standards.

from James Saft:

Waiting for Europe’s QE to sail

By J Saft
December 2, 2010

The good news is that the European Central Bank will probably start a massive additional round of quantitative easing to fight the break-up of the euro zone.

Fed is split but QE2 looks a done deal

November 1, 2010

- The opinions expressed are the author’s own-

FOMC meetings are usually a strange combination of formality and easy-going familiarity but levity may be in short supply this week. The Fed’s institutional credibility is on the line, and the normal decorum that characterizes relations among committee members has become increasingly strained over the summer.

Quantitative easing and the commodity markets

October 29, 2010

-The views expressed are the author’s own-

A warning by an International Energy Agency (IEA) analyst this week that quantitative easing (QE) risked inflating nominal commodity prices and derailing the recovery drew a withering response from Nobel Economics Laureate Paul Krugman, who labelled the unfortunate analyst the “worst economist in the world”.

Euro zone faces QE2 pain test

October 14, 2010

QE2 — a second round of quantitative easing — means that soon the U.S., Japan and Britain will all be busily exporting their deflation, raising the question: Just how much pain can the euro zone take?