Economics

News Release

New CFR Scorecard Shows U.S. Corporate Tax System Keeps Foreign Profits Abroad

Nearly three decades after the last major tax overhaul, both Democratic and Republican parties and President Barack Obama agree that cutting the corporate tax rate and taxing foreign profits differently would move the tax system in the right direction. The outdated corporate tax system does not raise as much revenue as the systems of most other rich countries, even as U.S. corporate profits have reached record highs, according to a new progress report and scorecard from the Council on Foreign Relations' Renewing America initiative.

See more in United States; Tax Policy

Video

Globalizing World Requires Transatlantic Partnership and Leadership

Speaker: Wolfgang Schäuble
Presider: Robert M. Kimmitt

With the economic structural reforms enacted in many southern European countries now beginning to show results, German finance minister Wolfgang Schäuble joins Robert Kimmitt of the American Council of Germany to discuss the current state of the European economic recovery.

See more in Germany; Economics; EU

Audio

Globalizing World Requires Transatlantic Partnership and Leadership

Speaker: Wolfgang Schäuble
Presider: Robert M. Kimmitt

With the economic structural reforms enacted in many southern European countries now beginning to show results, German finance minister Wolfgang Schäuble joins Robert Kimmitt of the American Council of Germany to discuss the current state of the European economic recovery.

See more in Germany; Economics; EU

Other Report

The U.S. system for taxing corporate profits is outdated, ineffective at raising revenue, and creates perverse incentives for companies to shelter profits overseas. It is also, for most U.S. companies most of the time, a pretty good deal, which is one of the big reasons why any serious overhaul will be so difficult to achieve.

See more in United States; Tax Policy

Foreign Affairs Article

Putin's Lehman Moment

Author: Robert Kahn

Robert Kahn argues that the West should be ready to impose more robust economic sanctions against Russia, in order to deter it from further infiltrating or destabilizing Ukraine. Russia's economic complexity means sanctions would meaningfully reduce Russian wealth and growth, since Russian oligarchs and business leaders have significant financial stakes in the West.

See more in Russia and Central Asia; Sanctions

Transcript

Media Call with Benn Steil on European Central Bank Meeting

Speaker: Benn Steil
Presider: Neil Irwin

Ahead of the April 3, 2014, meeting of the European Central Bank (ECB)'s rate-setting Governing Council, CFR Director of International Economics Benn Steil discussed why the expected shift toward more aggressive monetary stimulus will fail to revive private-sector credit without a more compelling bank recapitalization plan.

See more in Europe; Economics

Op-Ed

How to Reform Ukraine's Economy

Authors: Heidi Crebo-Rediker and Douglas A. Rediker
Fortune.com

Heidi Crebo-Rediker and Douglas A. Rediker examine the role of the European Bank for Reconstruction and Development (EBRD) in Ukraine, arguing that the EBRD should shift its resources away from Russia and, in accordance with its mandate, support Ukraine's transition toward democracy and market-oriented economics.

See more in Ukraine; Economics

Audio

Media Call with Benn Steil on European Central Bank Meeting

Ahead of the April 3, 2014, meeting of the European Central Bank (ECB)'s rate-setting Governing Council, CFR Director of International Economics Benn Steil discussed why the expected shift toward more aggressive monetary stimulus will fail to revive private-sector credit without a more compelling bank recapitalization plan.

See more in Europe; Economics

Primary Sources

IMF World Economic Outlook

The World Economic Outlook (WEO) presents the IMF staff's analysis and projections of economic developments at the global level, in major country groups (classified by region, stage of development, etc.), and in many individual countries. It focuses on major economic policy issues as well as on the analysis of economic developments and prospects. It is usually prepared twice a year, as documentation for meetings of the International Monetary and Financial Committee, and forms the main instrument of the IMF's global surveillance activities.

See more in International Finance; Global Future Trends; Global

Must Read

NYT: The Wolf Hunters of Wall Street

Author: Michael Lewis

"Katsuyama and his team did measure how much more cheaply they bought stock when they removed the ability of some other unknown trader to front-run them. For instance, they bought 10 million shares of Citigroup, then trading at roughly $4 per share, and saved $29,000 — or less than 0.1 percent of the total price… It sounded small until you realized that the average daily volume in the U.S. stock market was $225 billion. The same tax rate applied to that sum came to nearly $160 million a day."

See more in North America; Banks and Banking

Op-Ed

What Europe Can Learn From the U.S. Bank Crisis

Authors: Benn Steil and Dinah Walker
Wall Street Journal

Benn Steil's latest op-ed in the Wall Street Journal, co-authored with Dinah Walker, explains why the ECB's anticipated foray into more aggressive monetary stimulus next week won't have any significant effect on the availability and cost of private-sector credit. The ECB believes that its ongoing bank stress tests will help revive the eurozone's moribund banking industry, but we argue that the tests are counterproductive without a mechanism in place to assure sufficient recapitalization of banks that fall short—as there was in the United States in 2009.

See more in Europe; Banks and Banking

Transcript

On the Road to Recovery, or Creating the “Mother of All Bubbles”?

Speakers: Joyce Chang, Nouriel Roubini, and Sebastian Mallaby

With the tapering of the Federal Reserve's bond buying program well underway, and the possibility of future interest rate hikes under discussion, J.P. Morgan's Joyce Chang and Nouriel Roubini of Roubini Global Economics assess the risks that exist in the current global financial system in a discussion with CFR's Sebastian Mallaby.

See more in Global; Politics and Strategy; Monetary Policy

Audio

On the Road to Recovery, or Creating the “Mother of All Bubbles”?

Speakers: Joyce Chang and Nouriel Roubini
Presider: Sebastian Mallaby

With the tapering of the Federal Reserve's bond buying program well underway, and the possibility of future interest rate hikes under discussion, J.P. Morgan's Joyce Chang and Nouriel Roubini of Roubini Global Economics assess the risks that exist in the current global financial system in a discussion with CFR's Sebastian Mallaby.

See more in Global; Politics and Strategy; Monetary Policy

Video

On the Road to Recovery, or Creating the “Mother of All Bubbles”?

Speakers: Joyce Chang and Nouriel Roubini
Presider: Sebastian Mallaby

With the tapering of the Federal Reserve's bond buying program well underway, and the possibility of future interest rate hikes under discussion, J.P. Morgan's Joyce Chang and Nouriel Roubini of Roubini Global Economics assess the risks that exist in the current global financial system in a discussion with CFR's Sebastian Mallaby.

See more in Global; Politics and Strategy; Monetary Policy