Op-Eds

Congress Shouldn't Cut Military Research on Climate Change

Author: Varun Sivaram
The Hill

The new House budget sets a deadline of October 1 to “cut waste, eliminate redundancies and end the abuse or misuse of taxpayer dollars,” and it specifically targets the Department of Defense (DOD) for spending “part of their budget studying climate change.” Varun Sivaram highlights how the military’s broad portfolio of climate change adaptation efforts should not be considered redundant or wasteful because it bolsters American national security interests.

See more in United States; Climate Change; Budget, Debt, and Deficits

The Austerity Wars: Debunking Paul Krugman

Author: Benn Steil
Forbes Online

Benn Steil’s 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.

See more in Global; Monetary Policy

Why the Oil Price Drop Matters

Author: Michael A. Levi
World Economic Forum

After three years of unusual stability around $100 a barrel, oil prices fell steeply in the second half of 2014, dropping from $115 a barrel in June to around $60 by December. With oil critical to national economies, international security and climate change, what does the apparent new world of oil mean?

See more in Global; Oil

Why Saudis Are Holding Strong on Oil

Author: Meghan L. O'Sullivan
Bloomberg View

While the death of King Abdullah of Saudi Arabia may not change the course of Saudi oil policy, Meghan O'Sullivan writes that interesting changes to the Kingdom's cabinet roster and other energy policies could be closer than most realize.

See more in Saudi Arabia; Oil

How the Fed Flubbed It

Author: Sebastian Mallaby
The Atlantic

CFR Senior Fellow Sebastian Mallaby reviews economic historian Barry Eichengreen's newest book Hall of Mirrors, which argues that history should have guided U.S. and European central bankers toward better decisions during the 2008 financial crisis.

See more in United States; Financial Crises

Europe’s Dodgy Bank Stress Tests

Authors: Benn Steil and Dinah Walker
Wall Street Journal

Benn Steil and Dinah Walker analyze the market reaction to the publication of the European Central Bank's long-awaited bank stress test results. The ECB's coddling of stress-tested banks — through the use of inflated inflation estimates and generous treatment of tax offsets against future profits which may never arise — precipitated a sell-off of bank stocks in a period when broad European indexes were up significantly. Unlike with the successful 2009 U.S. stress tests, there is no credible backstop of public funds available for Eurozone bank recapitalization, which would account for the ECB's reluctance to draw attention to the sector's undercapitalization.

 

See more in Europe; Banks and Banking

Why the World Missed the Oil Price Crash

Author: Michael A. Levi
The Washington Post

The recent oil price crash came as a surprise to many observers due to several critical misconceptions about oil markets, writes Michael Levi. As for prices going forward, “only the reckless would bet with any confidence on one particular outcome.”

See more in Global; Oil

Should the U.S. Take Unilateral Action on Climate Policy?

Authors: Michael A. Levi and Andrew P. Morriss
Wall Street Journal

The Wall Street Journal asks Michael Levi and Andrew P. Morriss whether the U.S. should act unilaterally to reduce greenhouse gas emissions. Levi answers “yes,” arguing that cutting greenhouse gas emissions now would enhance public health and the international credibility of the United States, and that reasonable action now would reduce long-term costs.

See more in United States; Environmental Policy

What the 2014 Oil Crash Means

Author: Michael A. Levi
Politico Magazine

As oil prices continue to drop, Michael Levi argues that the benefit to American consumers will outweigh any damage to the U.S. economy. However, how you view this plunge in oil prices "depends a lot on where you live and what work you do."

See more in Global; Oil; Financial Markets

Europe's Bargain

Author: A. Michael Spence
Project Syndicate

A. Michael Spence argues that the eurozone has an opportunity to jumpstart economic recovery by relaxing fiscal constraints on the condition that member states use the reprieve to initiate public sector investment and structural reforms.

See more in Europe; Monetary Policy; Budget, Debt, and Deficits