Tuesday, September 30, 2014
  1. Europe’s Austerity Zombies

    Joseph E. Stiglitz
  2. Xi Jinping’s Pure Party

    George Magnus

    Xi Jinping’s Pure Party

    5

     argues that rooting out corruption is not enough to ensure China's long-term economic growth.

    Xi Jinping IMF/Flickr

    While the Chinese authorities' efforts to root out corruption within the Communist Party are a welcome development, the Party itself is part of the problem. The true test of change will be whether the Party is prepared to subordinate itself to new, inclusive institutional arrangements that are conducive to comprehensive economic reform. READ MORE

  3. Germany’s Economic Mirage

    Philippe Legrain

    Germany’s Economic Mirage

    42

     pokes large holes in the myth of German success.

    Germany Bundestag Blogomentary/Flickr

    For 60 years, successive German governments sought a more European Germany; but now, Chancellor Angela Merkel’s administration wants to reshape Europe's economies in Germany’s image. This would be a disaster: Far from being Europe’s most successful economy – as German officials boast – Germany’s economy is dysfunctional. READ MORE

  4. Europe’s Bargain

    Michael Spence

    Europe’s Bargain

    21

     calls for eurozone members to cut public-sector liabilities while hiking public-sector investment.

    EU Parliament Strasbourg EU Parliament/Flickr

    Eurozone member countries should implement fiscal and structural reforms in exchange for short-run relaxation of fiscal constraints – not to increase liabilities, but to focus on growth-oriented investments to jump-start sustained recovery. If they do, private investors would take note, accelerating the recovery process. READ MORE

  5. Piketty’s Missing Rentiers

    Jeffrey Frankel

    Piketty’s Missing Rentiers

    35

     says that inequality is rising, but not for the reason Thomas Piketty has given.

    Rich and poor on street Ice Man/Flickr

    Thomas Piketty predicts that interest rates will rise substantially above the growth rate, capital will accumulate, and the rich will get richer through inheritance and capital income, rather than through outlandish salaries and stock options. But unearned income is not what is driving the current rise in inequality. READ MORE

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