Can the IMF Save the World?

By: Barry Eichengreen, University of California, Berkeley

Only if the IMF comes up with some new ideas.

The case against a Grand Coalition in 2009

By: Wolfgang Münchau

Forget all this hogwash about the responsibility of the cenrtre. Grand coalitions are undemocratic.

Why the European Debate on Competitiveness is going nowhere

Raising competitiveness has been the prime goal of economic policy in Europe. But is it a sensible goal? Those who favour a competitiveness-based approach often make false analogies between enterprises and countries. Countries do not compete in the way companies do. Trade among countries is not about profit but about the division of labour. It can benefit all by raising productivity. A more meaningful concept of competitiveness at the national level defines a competitive country as one that can maintain high rates of growth and employment in the medium term. This concept focuses on the country’s ability to provide its citizens with high and rising standards of living in the medium and long run.

Debunking the Paulson plan

The Paulson plan raises more questions than it provides answers. This is not just about whether it works, but about its long-term economic effects, the impact on growth, and the future solvency of the US.

Sarkozy's economics is not working

Sarkozy has miscalculated the budget deficit issue. Politically France is losing influence, and economically, he has now insufficient room for manoeuvre to confront the economic downturn.

Two scenarios for the financial crisis

There are two ways this crisis can development. The financial system will experience a systemic hit, or inflation might rebound. There are circumstances where both can happen.

How to deal with Spain and Ireland?

This is possibly the worst time to bash the ECB. The biggest risk to the euro area aera economy is a meltdown of the Spanish economy, something which the ECB can do nothing about. We need to consider a quid-pro-quo IMF style liquidity injection into the Spanish economy in exchange for assurances on policy changes.