Cry
Wolf but do not ignore Tomorrow's Tigers |
| Heiner
Flassbeck |
|
| Most
commentators treat Greece's domestic problems
and those of other southern members of the
European Monetary Union (EMU) as if they
were totally unrelated to external trade
within and outside EMU. But, if Europe cannot
agree on a concerted action with explicit
decisions about wage adjustment paths to
rebalance its trade, these external imbalances
could lead to dissolution of the EMU. |
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| FDI
and the Balance of Payments in the 2000s |
| C.P.
Chandrasekhar & Jayati Ghosh |
|
The
most quoted indicator of the success of
economic reform is the noticeable rise
in the inflow of foreign direct investment
during the last decade and a half. However,
the available Indian evidence on the performance
of foreign direct investment companies
suggests that their balance of payments
consequences are adverse. |
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| Financial
Euphoria and Aftershock |
| Jayati
Ghosh |
|
John
Kenneth Galbraith's analysis of the capitalist
economy in the delightfully written tract
''A Short History of Financial Euphoria''
remains as relevant today as it was then.
However, unlike what Galbraith offers,
the solution to capitalism's proneness
to recurrent bouts of speculation has
to go beyond capitalist markets and profit
motivation. |
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| Speculation
against the Euro |
| Luiz
Carlos Bresser-Pereira |
|
The
latest speculative attack against Greece,
one
of the fragile countries in the eurozone,
is another evidence of the need to strictly
regulate banks and hedge funds. It also
brings home the point that money is a
powerful and dangerous public good that
democratic societies must have control
over. |
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| The
Crisis and Employment in Asia |
| C.P.
Chandrasekhar & Jayati Ghosh |
|
Despite
scepticism about its sustainability, evidence
shows that the crisis of 2008-09 has bottomed
out and a recovery is likely, driven by
the fiscal stimulus offered by governments
across the world. But figures from the
ILO indicate that the impact of the stimulus
on employment appears uneven, with export
dependent economies in Asia too adversely
affected. |
|
|
| Euroland
is Being Crucified Upon Its Own Cross of
Gold |
| Thomas
I. Palley |
|
The
neoliberal doctrine followed by the European
monetary union (EMU) is the main reason
for the current economic woes being faced
by Euroland countries in the context of
the financial crisis. To break out of
the current scenario, it is necessary
to forsake the dogmatic monetary policies
still being followed. |
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| K.N.
Raj: Outstanding economist, institution
builder, beacon for young people |
| C.
Rammanohar Reddy |
|
The
years after independence saw a number
of outstanding young men and women throw
their hearts and bodies into building
a new India. K.N. Raj was a giant of that
generation. Professor Raj was many things:
an outstanding economist, an excellent
teacher, a builder of institutions, a
beacon for young people and, not least,
someone who could think well ahead of
his time. |
|
|
| Can
the Euro Survive? |
| Jayati
Ghosh |
|
The
focus of financial market attention in
the past week has been on the fiscal problems
in some developed countries within the
European Union, in particular Greece,
Portugal etc. The fiscal problems in Greece
are currently the most pronounced, but
the problem posed by the sovereign debt
issues of the country is deeper and potentially
more significant. In fact, it is not just
about the current problem of Greece or
any other country, but the larger issue
of stability and viability of the eurozone
itself. |
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| |
|
|
| Are
we Heading for Another Global Primary Commodity
Price Surge? |
| C.P.
Chandrasekhar & Jayati Ghosh |
|
Following
the unprecedented volatility of global
commodity prices in 2007-08, it was widely
predicted that the global economic crisis
would generate a dampening effect on such
prices. But the recent revival of prices
especially in some commodities suggests
that this perception may be premature.
Examining recent trends in global commodity
prices and the reasons behind them, the
article assesses the prospects for prices
in the immediate future. |
|
|
| Cloud
over Islamic Banking |
| C.P.
Chandrasekhar & Jayati Ghosh |
|
The
large surpluses which accumulated with
West Asian oil exporters after the 1970s
generated a demand for financial products
that were sharia-compliant. The Islamic
financial industry, which grew as a result,
was seen as a different and safer component
of the global financial sector. But the
Dubai World debacle and much else suggests
that these judgments were not warranted.
|
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| |
|
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| The
Decade of Living Dangerously: CEOs and Capitalism
|
| Jayati
Ghosh |
|
The
policy-created bubble in the US housing
and financial sectors during 2002-2007
was only a repeat of the earlier 1990s
process, albeit on an even larger scale.
While the current crisis has once again
brought to the fore the crucial role played
by fraud and deceit in the accumulation
of capital in a capitalist system, global
capitalism may still manage to reinvent
itself. But this time round, it would
require a major change of course. |
|
|
| Sovereign
Default in the Core? |
| C.P.
Chandrasekhar |
|
The
possibility of sovereign default flagged
in by Dubai World together with the changed
distribution of sovereign debt globally
has created a new context: it is not governments
of poor developing countries that are
now the principal source of danger, but
the metropolitan centres of capitalism. |
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| |
|
|
| Bye-Bye
Dubai? |
| C.P.
Chandrasekhar & Jayati Ghosh |
|
The
near default of the biggest state conglomerate
of Dubai has sent shock waves across global
markets. Analysing the factors behind
Dubai's recent growth and the causes of
the current crisis, the authors argue
that the collapse of the Dubai dream is
not a sui generis event without any implications
for wider markets. Rather, it may be a
straw in the wind indicating that the
travails of finance capitalism in the
current period are far from over. |
|
|
| Recovery
or Bubble? |
| C.P.
Chandrasekhar |
|
Although
the US's policy of easy money triggered
a recovery in some economies, it has generated
a bubble similar to the one that preceded
the 2008 downturn. Thus the emerging story
of a new speculative boom and a fresh
bubble driven by finance capital has led
to growing fears of a second downturn
or double dip recession. |
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