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.
"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."
It has been a generation since our country last had a robust conversation about combatting poverty. Now is the time to reinvigorate that conversation, not cut needed benefits, write Robert E. Rubin, Roger C. Altman, and Melissa Kearney.
Peter Orszag and Cass Sunstein write that governments should use "nudges"—policies that harness economics and psychology to encourage certain behaviors—to deliver major benefits without imposing big costs on the public or private sector.
The scorecard infographic and accompanying progress report, "Trading Up: U.S. Trade and Investment Policy," analyzes the overall health of the U.S. economy by focusing on shifts in global trade and foreign direct investment in the United States.
The Obama administration has embraced the most ambitious agenda on trade and investment liberalization in the past two decades, but more must be done to remove trade barriers in services, which is where the United States is most competitive, according to Ted Alden.
Despite impressive changes over the past three years, Myanmar (or Burma) now faces growing insecurity and rising disappointment among citizens that reform has not brought higher standards of living. Interethnic and interreligious unrest now threaten to halt reforms altogether, depress much-needed investment, and could even lead to broader regional tensions.
"If the eurozone adopts the program outlined above, there should be no need for Germany to pick up any tab. But under the perverse policies that Europe has adopted, one debt restructuring has been followed by another. If Germany and the other northern European countries continue to insist on pursuing current policies, they, together with their southern neighbors, will wind up paying a high price."
Charles Kupchan and Robert Kahn examine the economic and political crisis in the European Union and discuss ways to restore financial stability, economic growth and political legitimacy to the project of European integration.
"Unlike his predecessors, Xi is making foreign policy with the mindset of a great power, increasingly probing U.S. commitments to its allies in the region and exploiting opportunities to change the status quo."
The Council on Foreign Relations' David Rockefeller Studies Program—CFR's "think tank"—is home to more than seventy full-time, adjunct, and visiting scholars and practitioners (called "fellows"). Their expertise covers the world's major regions as well as the critical issues shaping today's global agenda. Download the printable CFR Experts Guide.
The author examines Pakistan's complex role in U.S. foreign policy and advocates for a two-pronged approach that works to quarantine threats while integrating Pakistan into the broader U.S. agenda in Asia.