Money, Markets, and Sovereignty
CFR's Roger Kubarych says a new plan could boost banks' confidence about reserve requirements, but adds that other problems loom.
Listen to Benn Steil, senior fellow and director of international economics at CFR, discuss his new book, Money, Markets, and Sovereignty, which he coauthored with Manuel Hinds, former finance mininster of El Salvador.
Benn Steilís new Forbes op-ed examines Paul Krugman's data analysis purporting to document definitively that "austerity," defined by declines in real government purchases, damaged growth between 2010 and 2013. He shows that this finding collapses entirely when he excludes countries without independent monetary policies, such as those in the Eurozone. For countries with independent monetary policies, changes in real government purchases had no effect on growth.