Are we talking our way to a Greek exit from the euro? As more and more pundits and politicians and economists start to talk about how it might be done, and the Greeks themselves struggle to form a viable coalition government (it looks like there will have to be another general election next month), perhaps it is time to think the un-thinkable and start to draft policy for a post-exit world. Read More
Spain's crisis is one of private, not public debt, and arguably has its roots far more in the inappropriate monetary policy applied from Frankfurt during the key 2002 to 2006 period than in any failure in the application of the EU Stability and Growth Pact. Read More
Most economists expect catastrophic consequences if any country exits the euro. Like most conventional wisdom, such a view will be contradicted not by opposing ideas but by the march of events. Read More
We've turned the corner. When I say “we,” I of course mean the world. And once again the economy that will have the greatest influence on world recovery is that of the United States. The unsubtle sign of US recovery is jobs growth, which we referred to last week and which has exceeded expectations. Read More
The UK government has so far placed the strongest emphasis on what is inaccurately termed “austerity” rather than on “spending,” in order to get the economy back on track. Read More