Why the Fed should not prevent a US recession

By: Paul de Grauwe, K. U. Leuven

The US needs a higher savings rate. There is no way around it.

Is US inflation at 8%?

By: Wolfgang Münchau

Some estimates suggest that we are consistently underestimating the rate of US inflation. While I am largely agnostic on this particular issue, I strongly believe that we need a debate about how we measure prices. (Note to readers: The guestbook entries are working again.)

Serbia's big step towards EU membership

Arrest of Radovan Karadzic a big step towards pre-accession treaty entering into force; IMF says global imbalances are there to stay; Greece might be forced to revise its fiscal goals; housing crisis might wipe out most of US financial sector capital; the latest constitutional changes in France, meanwhile, still make a referendum on Turkish EU membership highly likely.

Central banks must care about asset prices

By: Wolfgang Münchau

The IMF is right to say that asset price matter for monetary policy. But the IMF is wrong to claim that this would be consistent with inflation targeting.

Why the euro will soon replace the dollar as the world's reserve currency

By: Wolfgang Münchau

The predominance of the dollar as the global reserve currency is bound to end in any case. The credit crisis will greatly accelerate that process.

Ten reasons to leave the euro-dollar exchange rate alone

By: Eurointelligence ECB Watch

We have been hearing a lot of anguished comment about the euro-dollar exchange rate. Here are ten reasons why we should leave the euro/dollar exchange rate alone.

Ben's depression

By: Wolfgang Münchau

A return to a monetary policy to stabilise prices ended the Great Depression in the 1930s. This time it will work the other way round. Once the Fed is forced back onto a path of price stability, our depression will begin.