Economics

Article

Political Parties at War: A Study of American War Finance, 1789–2010

Authors: Sarah Kreps and Gustavo A. Flores-Macias
The American Political Science Review

Sarah Kreps and Gustavo Flores-Macias study the history of war finance in the United States and show that politics does not stop at the water's edge and that instead, partisan politics is a key determinant for whether the United States has financed wars through taxes or alternatives such as borrowing.

See more in United States; Wars and Warfare; Economics

Op-Ed

How Fed Policy Roils Emerging Markets

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, shows that developing countries running large current account deficits have seen their economies whipsawed by volatile capital flows triggered by unconventional monetary policy at the Fed and elsewhere in the developed world. The clear lesson for such countries is that they should pursue policies which constitute "currency manipulation" in Washington, thereby setting the stage for rising global trade tensions.

See more in United States; Financial Markets; International Finance

Must Read

FT: The Scandal at the Vatican Bank

Author: Rachel Sanderson

"After a decade of paedophilia scandals, the allegations of financial impropriety seemed set to unleash another storm of criticism and had to be addressed. Outside auditors as well as financial risk consultants were already coming into the Vatican but the arrest of Scarano made the case for reform unavoidable. "We cannot have any more scandal. It is so shameful," a senior member of the Vatican's financial administration said."

See more in Holy See/Vatican; Banks and Banking