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.
Peter Orszag and Cass Sunstein write that governments should use "nudges"—policies that harness economics and psychology to encourage certain behaviors—to deliver major benefits without imposing big costs on the public or private sector.
The Obama administration has embraced the most ambitious agenda on trade and investment liberalization in the past two decades, but more must be done to remove trade barriers in services, which is where the United States is most competitive, according to Ted Alden.
Charles Kupchan and Robert Kahn examine the economic and political crisis in the European Union and discuss ways to restore financial stability, economic growth and political legitimacy to the project of European integration.
Peter Orszag writes that the Reserve Bank of New Zealand's limits on high loan-to-value mortgages are a model for the kind of actions the U.S. Federal Reserve could have taken to manage the U.S. mortgage market and reduce the risks that the housing bubble posed to the financial system.
Peter Orszag and John Bridgeland argue that the federal government needs to do a better job of figuring out what programs work, giving more funding to the programs that are effective, and cutting funding from that programs that are not.
Michael Spence argues that continued U.S. debt ceiling brinkmanship will reinforce perceptions that American politics are helplessly parochial, encourage other nations to diversify away from holding U.S. sovereign debt, and accelerate the decline of America's global economic influence.
Because a binding U.S. debt ceiling creates constitutional contradictions that cannot be resolved in a non-destructive way, Martin Wolf writes that the debt ceiling is too dangerous a law to remain on the books.
Peter Orszag writes that new research finds hospitals with better heart attack patient survival rates are rewarded with greater market share, which suggests competitive forces are allocating patients to the most productive hospitals.
In Money, Markets, and Sovereignty, the authors present a fascinating intellectual history of monetary nationalism from the ancient world to the present and explore why, in its modern incarnation, it represents the single greatest threat to globalization. More
In The Closing of the American Border, Edward Alden goes behind the scenes to tell the story of the Bush administrationís struggle to balance security and openness in the wake of the September 11, 2001, terrorist attacks. More
In this report, Benn Steil shows that the financial crisis is the inevitable bust of a classic credit boom, and explains how monetary, taxation, and home ownership promotion policy combined with other features of the financial system to fuel an unsustainable buildup in debt. He recommends significant reforms to reverse the debt financing bias and make the system more resilient to falls in asset prices. More
In order for policymakers to tackle todayís global economic crisis, this report argues, they must go beyond bailouts and stimulus packages and focus on one of the crisis's root causes: imbalances between savings and investment in major countries. More