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.)

Inflation up everywhere

US inflation reaches 5%, as Fed officially starts to worry; there are first signs that sovereign wealth funds are shifting out of dollars into euros; European car sales were over 7% down in June over last year; Spain has become the 23rd European country to ratify the Lisbon Treaty; in France, meanwhile, the vote over Sarkozy’s constitutional reform will be unfomfortably tight.

Is Sarkozy winning?

By: Wolfgang Münchau

Germany should come up with its own plans for policy coordination. Otherwise, Sarkozy is going to win this debate.

Mr Sarkozy and the euro

By: Jean Pisani-Ferry, Bruegel

By attending the eurogroup meeting this week, Nicolas Sarkozy was above all making a political statement. After a decade of conspicuous absence by the heads of state and government at these meetings, Nicolas Sarkozy clearly intended to start a new chapter. But he lacks credibility. France cannot at the same time plead for a strengthening of the euro area governance and ignore the agreements that have already been reached.

A primer on the EU's Reform Treaty

By: Andrew Duff, MEP

This is an update version of Andrew Duff's analysis of the agreement on the Reform Treaty, and the mandate for the IGC.

Sarkozy jeopardises the future of the euro area

By: Wolfgang Münchau

Germany is heading for a balanced budget by 2011. France is heading for a fiscal shock. An old conflict is re-emerging, and it could prove highly destabilising for the euro area in the medium term.