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.)

Good news from Italy

Paradoxically, the current crisis may turn out to be the best thing that has happened to the country in years.

Why this US recession is going to be long and ugly

No two recessions are alike. The worst type of recessions are those that are accompanied by a financial crisis, such as this one. This is why the US recession will not respond well to interest rate cuts.

Not merely a subprime crisis

If the credit default swap market hits problems it could produce global financial meltdown if the US recession turns out to be long and hard.

Hold tight, the central banks have no plan

This has been the year when many deeply held beliefs have been challenged. One such belief was that central banks have the toolkit to sort out any conceivable economic or financial crisis.