Thursday, October 23, 2014
  1. Europe’s Brush with Debt

    Hans-Werner Sinn

    Europe’s Brush with Debt

    6

     suggests that the eurozone emulate the US approach to maintaining stability in a monetary union.

    eurobonds building graffiti Karin Viva/Flickr

    French Prime Minister Manuel Valls and his Italian counterpart, Matteo Renzi, refuse to comply with the eurozone's 2012 fiscal compact; instead, they intend to run up fresh debts. Their stance highlights a fundamental flaw in the European Monetary Union’s structure – one that Europe’s leaders must address before it is too late. READ MORE

  2. The Moral Economy of Debt

    Robert Skidelsky

    The Moral Economy of Debt

    4

     on the need to limit credit supply and demand to what the economy is capable of producing.

    Newsart for The Moral Economy of Debt JuanG89/Flickr

    The creditor-debtor relationship embodies no iron law of morality; rather, it is a social relationship that always must be negotiated. When quantitative precision and an unyielding approach to debt obligations are the rule, conflict and penury soon follow. READ MORE

  3. Inheritance and Inequality

    Edward N. Wolff

    Inheritance and Inequality

    8

     refutes Thomas Piketty's argument that wealth transfers exacerbate inequality.

    Newsart for Inheritance and Inequality Ian Wood/Flickr

    In his book Capital in the Twenty-First Century, Thomas Piketty emphasizes the rising share of inheritances and gifts in household wealth over time. This seems like a shocking revelation, implying ever-rising wealth inequality, but is it correct? READ MORE

  4. America, the Balanced

    Jeffrey Frankel

    America, the Balanced

    3

     suggests that the true US current-account balance could be a surplus.

    Pile of money Nicke Ares/Flickr

    It may be time to stop worrying about the US current-account deficit – and not only because of adjustment at home and in China. It is possible that, properly measured, America's true deficits were smaller than has been reported, and even that, in some years, they were not there at all. READ MORE

  5. The Inequality Trifecta

    Mohamed A. El-Erian

    The Inequality Trifecta

    24

     outlines a strategy to stem the rise in inequality of income, wealth, and opportunity.

    income inequality shoe shiner M. Jeremy Goldman/Flickr

    Perhaps the most striking disconnect at the annual IMF/World Bank meetings was the disparity between participants’ interest in discussions of inequality and the ongoing lack of a formal action plan for governments to address it. This represents a profound failure of policy imagination – one that must urgently be addressed. READ MORE

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