Speaker: Jean-Claude Trichet Presider: William J. McDonough
Listen to President of the European Central Bank Jean-Claude Trichet discuss the need for structural reforms in Europe, particularly those that increase labor productivity growth, establish well-functioning product markets, and create a competitive, entrepreneurial-friendly economic environment.
Two decades ago, the United States was the world's largest creditor; now it's the world's largest debtor. As Ben Bernanke assumes the post of Federal Reserve chairman, succeeding Alan Greenspan, opinion is split over how much America's profligacy actually matters.
The scale of financing needed to support the U.S. fiscal deficit—together with the Federal Reserve’s policy of keeping U.S. interest rates low to ward off deflation—has revived concerns about a sudden and sharp depreciation of the U.S. dollar. This Center for Preventive Action Contingency Planning Memorandum by Brad W. Setser examines potential triggers and indicators of such a crisis and posits concrete policy options to limit U.S. vulnerability to the possibility of a plummeting dollar.
The Federal Reserve's move to inject an added $600 billion into the banking system is bad policy, straining the international monetary order and U.S. credibility abroad, writes CFR's Sebastian Mallaby.
GOP election gains make it less likely Congress will enact needed deficit cuts and more fiscal stimulus, and the Fed's quantitative easing plan could create new bubbles, says CFR Distinguished Visiting Fellow Peter Orszag.
By ending the yuan's peg to the U.S. dollar, China will deflect pressure over its currency policy at the upcoming G20 meeting. But tensions will persist over the pace of reform, says CFR's Steven Dunaway.
"Europe's leaders were right about the pressure. Monetary union without banking union will not work, and a workable banking union requires at least some elements of fiscal and political union. But they were wrong about the irresistible part. There is no inevitability about what comes next."
The April 2012 Global Financial Stability Report from the International Monetary Fund states that although the global financial regulatory framework is being strengthened, no asset is truly risk-free. It highlights longevity risk as a pressing economic issue and analyzes its fiscal implications.
ProPublica tells the inside story of why the Federal Reserve agreed to allow banks to raise dividends in 2011, despite warnings that banks were not healthy enough and that the economy could implode again.
Published in Spiegel, this interview with German Finance Minister Schäuble provides insight into the relationship between Minister Schäuble and his American counterpart, Secretary Geithner, as well as the German position on the latest financial developments like the recent move towards quantitative easing.
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.