Bottom Line: The European Central Bank's (ECB) recent asset-quality review (AQR) and stress test of eurozone banks was an important step. But restarting growth requires stronger macro policies if Eur…

Steven A. Tananbaum Senior Fellow for International Economics Robert Kahn argues that the concerns driven by China's economic problems are modest compared to the 1997 Asian financial crisis or the Great Recession. However, there are reasons for concern: large financial imbalances, weak global growth, inadequate official resources, and political pressures. While a severe global financial crisis remains a tail risk, policymakers need to be prepared to respond.

Steven A. Tananbaum Senior Fellow for International Economics Robert Kahn argues that the decisions the Greek government will now face over who to pay will change the course of its crisis.

Bottom Line: Recognizing that the recent debt restructuring was insufficient to restore Greece's creditworthiness, the IMF will likely toughen conditions for lending to countries with unsustainable d…