Financial Markets

Must Read

Project Syndicate: Death by Finance

Author: Dani Rodrik

"This is not the first time that developing countries have been hit hard by abrupt mood swings in global financial markets. The surprise is that we are surprised. Economists, in particular, should have learned a few fundamental lessons long ago."

See more in Global; Financial Markets

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

Foreign Affairs Article

Capitalism and Inequality

Author: Jerry Muller

Inequality is rising across the post-industrial capitalist world. The problem is not caused by politics and politics will never be able to eliminate it. But simply ignoring it could generate a populist backlash. Governments must accept that today as ever, inequality and insecurity are the inevitable results of market operations. Their challenge is to find ways of shielding citizens from capitalism's adverse consequences -- even as they preserve the dynamism that produces capitalism's vast economic and cultural benefits in the first place.

See more in Financial Markets; Poverty

Op-Ed

The BoE Is Getting "Libored"

Authors: Benn Steil and Dinah Walker
Wall Street Journal Europe

Benn Steil's Wall Street Journal Europe op-ed, co-authored with Dinah Walker, argues that the Bank of England is getting "Libored"—that is, misled and manipulated—by the banks benefiting from its Funding for Lending Scheme. The Fed, which has shown interest in the scheme, should beware.

See more in United Kingdom; Financial Crises; Financial Markets