How the Brexit Killed Britain’s ‘Pay as You Go’ Policy
There go George Osborne’s dreams. Whatever the other consequences of the June 23 Brexit vote may prove to be, Britain’s ever-embattled chancellor of the exchequer just lost his long war for deep spending cuts, reduced social services, and annual surpluses…
Here’s the Bad News for America If Britain Leaves the EU
In a little more than a month, Britons will decide whether to remain in or leave the European Union—a choice that could shift alliances, economies and trade agreements throughout the developed world. Americans have a big stake in whether the…
If Consumers Don’t Open Their Wallets, We’re In for Another Recession
Apple, the totemic icon of high-tech’s promise of eternal growth, reports its first revenue decline in 13 years. The Eurozone is back from the brink. The U.S. economy may not be. All this in the same week. And let’s not…
The Biggest Cause of the Next Recession? Wary Consumers
The big question at the International Monetary Fund’s annual gabfest last week was why global economic growth is chronically slow and what can be done to shift into a higher gear. I.M.F. and World Bank economists have many ways to…
China Is Buying Up US Companies — Does Anyone Care?
During the late 1980’s, Americans were in a tizzy during the wave of Japanese corporate and real estate acquisitions. Well, here come the Chinese and, in all likelihood, here comes the tizzy. When Americans think of China, here’s what comes…
Draghi and the ECB Are Pumping Up Europe’s Economy—Will it Work?
Mario Draghi and the European Central Bank president’s announcement of new monetary measureslate last week is a shrewd contribution to the fight against sluggish growth and the now-chronic threat of deflation. The markets had figured for weeks that Mr. “Whatever…
Here’s Why China’s Not the Global Economy’s Problem
China’s new annual economic report, which Premier Li Keqiang unveiled to the National People’s Congress over the weekend, recognizes the problems associated with China’s fundamental transformation—notably the danger of unmanageable debt spread through the system—but lands on the side of optimism….
Misreading China Leads to Another Foolish Market Rout
As the global rout in stocks last week reminds us, markets are always reliable. We can count on investors to overreact to events they don’t understand, including a plump scapegoat like China. By the S & P Global Broad Market Index,…
Why China’s Slowdown Will Lead to Sustainable Growth
In less than a week China’s modest, by-the-book devaluation of its currency appears to have escalated into a full-scale political crisis, complete with reports of a Mao-style purge of top leaders and tanks in Tiananmen Square. Suddenly, the world’s highest-flying…
Europe’s Deal with Greece Nearly Splits the Eurozone
Leaders of the eurozone nations put Greeks and other Europeans on urgent notice at a hastily called summit in Brussels late Sunday evening: The group worked through the night and agreed to a new $100 billion bailout with serious reforms…
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