BERLIN – The harsh reality of the past year has created unprecedented challenges for Germany and its foreign policy. The crisis in Ukraine spiraled out of control, with Russia’s annexation of Crimea, followed by military escalation in the eastern Donbas region, calling into question the post-1945 European order.
MILAN – The world is facing the prospect of an extended period of weak economic growth. But risk is not fate: The best way to avoid such an outcome is to figure out how to channel large pools of savings into productivity-enhancing public-sector investment.
The world needs to stop looking backward. Since the 2008 financial crisis, we have wasted far too much energy trying to return to the days of rapid economic expansion. The flawed assumption that the post-crisis world's challenges were only temporary has underpinned policies that have yielded only lackluster recoveries, while failing to address key problems like high unemployment and rising inequality.
NEW YORK – Financial markets serve two crucial purposes: to channel savings toward productive investments, and to enable individuals and businesses to manage risks through diversification and insurance. As a result, the sector is essential to sustainable development, which represents unprecedented global-scale investment opportunities and risk-management challenges.
WASHINGTON, DC – When the Millennium Development Goals (MDGs) expire at the end of this year, the world will have made significant progress on poverty reduction, the provision of safe drinking water and sanitation, and other important objectives.
BEIJING – All low-income countries have the potential for dynamic economic growth. We know this because we have seen it happen repeatedly: a poor, agrarian economy transforms itself into a middle- or even high-income urban economy in one or two generations.
Over the last five years, the eurozone has, without explicit popular consent, maintained a strict policy focus on fiscal austerity and structural reforms – despite serious social repercussions, not only in the Mediterranean periphery and Ireland, but even in a “core" European Union country like France.
Yemen is no stranger to crisis. Exposed to a regional proxy war between Iran and Saudi Arabia, plagued by an entrenched Al Qaeda affiliate, and divided by tribal disputes and a secession movement, the country has become a poster child for everything that can go wrong in the Arab world.
MUNICH – Around the world, central banks' balance sheets are becoming an increasingly serious concern – most notably for monetary policymakers themselves. When the Swiss National Bank (SNB) abandoned its exchange-rate peg last month, causing the franc to soar by a nosebleed-inducing 20%, it seemed to be acting out of fear that it would suffer balance-sheet losses if it kept purchasing euros and other foreign currencies.
LAGUNA BEACH – Six and a half years after the global financial crisis, central banks in emerging and developed economies alike are continuing to pursue unprecedentedly activist – and unpredictable – monetary policy. How much road remains in this extraordinary journey?