The debt crisis that has hammered southern Europe since 2010 will have long-lived economic effects, despite the moderation in Spanish and Italian government borrowing costs since the European Central Bank's "Outright Monetary Transactions" initiative last September.
George Papandreou interviewed by Christopher Alessi
The EU and IMF should loosen the austerity requirements of Greece's bailout package to allow the indebted country to implement needed growth-enhancing policies, says former prime minister George Papandreou.
Micah Zenko argues, "The tolerance for threat inflation in the absence of plausible threats should be questioned and challenged by anyone interested in, or holding a stake in, the future of U.S. foreign policy."
Asked by Fagner Dantas, from Universidade Federal da Bahia
Globalization refers to the increasing ease with which goods, services, capital and people can move across the world, which has been accelerated by advances in technology and government policies to reduce barriers. In terms of reducing poverty in as many countries as possible, there is no question that globalizationcontinues to be beneficial, even after the 2008 financial crisis. Poverty continues to fall worldwide at a rapid rate, and countries most integrated into the world economy have seen the biggest reductions in poverty. But it is also true that even before the crisis, the gains from globalization were not spread evenly. Though millions have been lifted out of poverty and everyone benefits from cheaper consumer goods and the opening of new export markets, there are still winners and losers.
Former co-chairs of the President's bipartisan National Commission on Fiscal Responsibility and Reform Erskine Bowles and Alan Simpson proposed a new deficit reduction plan on February 19, 2013, through their organization Moment of Truth. Their plan projects reductions by $2.4 trillion over the next decade, with cuts to Medicare, Medicaid, Social Security, and discretionary spending, and ending or curbing deductions and tax breaks.
Contrary to those who see a future of "globalization on steroids," Joshua Kurlantzick says the reality of today's economic slowdown is that it will leave as its legacy the worst degloblization in modern history.
"Nowhere is this more heartfelt than in Italy. The euro is more than a currency: It is the strongest symbol of belonging to Europe, a relationship that many Italians hope can teach them better governance."
Timothy F. Geithner, the 75th Secretary of the U.S. Department of the Treasury, will join the Council on Foreign Relations (CFR) as a distinguished fellow. Geithner, who was previously a senior fellow at CFR in 2001, will be based at the organization's headquarters in New York.
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.
Because a financial crisis can inflict lasting damage to productivity growth, Peter Orszag argues that the failure of U.S. policymakers to enact a "barbell" fiscal policy now could yield more economic troubles down the road.
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.