Category Full Posts

Inflation: Slowly Rising Prices Can Be a Bad Thing

It is important that prices don’t rise too fast when times are good or too slow when times are bad. The latter is the current situation in some key advanced economies, with low and falling inflation emerging as the most serious obstacle for a return to full employment and a durable economic recovery. Weak demand […]

Is China Serious About Liberalizing the Renminbi?

**This article originally appears here in the Financial Times online blog ‘Beyondbrics’ and refers to the interactive China Currency Tracker.  Both are featured in the Financial Times Special Report: The Future of the Renminbi.** By Eswar Prasad, Karim Foda, and Abhinav Rangarajan September 30, 2014 China is making steady progress on its path to making the renminbi an […]

China Is Not On Top, Yet

For the first time in history, the largest economy in the world will be poor.  Last week, the World Bank revealed that prices in developing countries are much lower than we previously thought, implying that the purchasing power of citizens in those countries is stronger.  Taking this into account, new estimates of GDP at purchasing […]

Of Global Interest

The persistent decline of global real interest rates since the 1980’s has been puzzling.  Public debt in advanced economies is approaching record highs, yet borrowing costs have continued to decline.  The good news is that a low interest rate improves fiscal sustainability for governments trying to improve their fiscal positions. The bad news is that […]

(un)Employment in the U.S.

The unemployment rate in the U.S. has been steadily declining since it hit 10 percent in October 2009.  Four and a half years of steady and consistent improvement in the unemployment rate, however, has convinced neither policymakers nor the public that the American labor market is on track for a comeback.  At the end of […]

Driving Growth to Catch Up

Any casual observer of the world’s state of affairs knows that advanced economies have been in trouble and emerging markets and China in particular have been important drivers of global economic growth.  Despite concerns of “emerging market turmoil” over the last couple months, there has been a sense of unease and fear in advanced economies […]

Say What?

The right to express oneself freely and without judgment or fear is at the core of a prosperous and stable society.  No other right occupies this absolute core than the right to free speech and expression – the core of the core, if you will.  The right to freedom of religion, thought, movement, assembly, and […]