MILAN – The growth map of the global economy is relatively clear. The U.S. is in a partial recovery, with growth at 1.5 to 2 percent and lagging employment. Europe as a whole is barely above zero growth, with large variations among countries, though with some evidence of painful re-convergence, at least in terms of nominal unit labor costs. China’s growth, meanwhile, is leveling off at 7 percent, with other developing countries preparing for higher interest rates.
Economics & Finance
At its meeting on 7 November, the Governing Council took a number of decisions on key ECB interest rates, forward guidance and liquidity provision.
There is a lot of fear in Fawzia Koofi’s life.
The opponents: Anyone looking to pass economic judgment on the euro crisis cannot ignore the heads of the two leading German think tanks. Sinn, 65, has led the Ifo Institute for Economic Research in Munich for almost 15 years. He appeared in front of Germany's Federal Constitutional Court to support the complaint against the European Stability Mechanism permanent bailout fund. Fellow economist Fratzscher, 42, worked at the ECB until 2012. He has been the president of the DIW economic research institute since the beginning of the year; a few weeks ago, he was part of an appeal for closer political union in Europe.
A number of assumptions have been adopted for the projections presented in the World Economic Outlook(WEO).
More than 10,000 people demonstrated in Bangkok against a controversial amnesty bill passed by the lower house of parliament. The bill, which has also to pass the senate, would pardon almost anyone facing charges arising from Thailand’s political turmoil between 2004 and 2010. Critics say its aim is to grant amnesty to Thaksin Shinawatra, who was overthrown as prime minister in 2006 and lives in exile. He is the brother of Thailand’s present prime minister, Yingluck Shinawatra.
In the early 1990’s, most Arab countries, in order to foster growth and create sufficient employment opportunities, looked to transition from economies dominated by a bloated public sector to ones in which the private sector is the main driver of growth; from closed economies to competitive ones integrated in the global economy; and from oil- and gas-based economies to greater economic diversity.
AT THE beginning of the 1980s capital was flooding into the American oil and gas industry. Apache Corporation, an erstwhile conglomerate spanning steel, dude-ranching and car sales, sought to tap into the flow in a novel way. It wrapped a bunch of private oil and gas assets into a new ownership structure that was akin to a partnership but was publicly listed. It was a useful idea—until steep declines in tax rates and energy prices put the Apache Petroleum Company to rest in 1987.
MUNICH – Last June, the European Commission announced its about-face on bank restructuring. The money for recapitalizing distressed banks would now come primarily from creditors, not European taxpayers, with a pecking order to specify which lenders would be repaid first. All of this is welcome, at least in principle. In practice, however, the scheme leaves much to be desired.
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