The U.S. helped establish the International Monetary Fund (IMF) and the World Bank to help economies recover after World War II, to prevent a reversion to protectionist policies that contributed to the Great Depression’s depth and duration, and to help spur economic growth and development in poor or newly independent countries. With the expiration of fixed exchange rates in the early 1970s, the IMF’s original mission ceased; it assumed such new missions as bailing out developing countries in financial crises. Yet it lacks the authority and resources to address threats to today’s international financial system; it should downsize and be fundamentally reformed.
Abstract: In Argentina, the rule of law and free-market principles have been weakened dramatically over the past decade. Under the leadership of Nestor and Cristina Kirchner, economic freedom in Argentina has been in a virtual freefall, corruption has… Read more
Abstract: The number of Americans who pay taxes continues to shrink—and the United States is close to the point at which half of the population will not pay taxes for government benefits… Read more
Revised and updated July 06, 2011. Washington’s reckless spending spree of the past several years and unwillingness to confront the mountains of debt coming soon from unreformed federal entitlement programs threaten the economic and social… Read more
Abstract: Multilateralism is not an end in itself. It is one of many foreign policy tools, admittedly a very important one, in the diplomatic kit. For the United States, multilateralism faces its greatest challenge at the United Nations, where the all-too-frequent clash of worldviews… Read more
This year, the U.S. public debt is projected to reach 62 percent of the economy—up from 40 percent in 2008 and nearly double the historical average, according to recent Congressional Budget Office (CBO) estimates. The financial crisis and recession drove much of this debt swing, yet larger problems loom in… Read more
Abstract: Year after year, The Heritage Foundation’s Index of Dependence on Government documents the ever-growing number of federal aid programs and the ever-growing number of Americans who rely on government subsidies for their existence. The number… Read more
Abstract: Long-run federal spending is wildly unsustainable, as almost everyone from right to left agrees. Under President Obama, this long-run problem has been married to an almost equally unsustainable short-run problem of deficit spending. Thus, to watch developments… Read more
This weekend, the Eurozone members and the International Monetary Fund (IMF) proposed a €110 billion ($140 billion) rescue package for the struggling Greek economy. In exchange for imposing tough austerity measures—including a three-year public sector pay freeze, an increase in taxes, and a liberalization of labor laws—Eurozone countries will provide… Read more
Testimony before theU.S.-China Economic and Security Review CommissionFebruary 25, 2009 The debate over the nature and implications of Chinese investment around the globe suffers badly from too much speculation and too few facts. It is in the PRC's… Read more
Abstract: Is there a role for government in the economy? Yes, says Heritage analyst Karen Campbell--but the government must focus on maintaining economic stability. Fiscal responsibility is an important part of that stability. Government debt can quickly become a burden on the economy and weaken its foundations. Sound macroeconomic policies enhance the credibility of the government… Read more
When President Obama leads the U.S. delegation to the April 17-19 Summit of the Americas in Trinidad and Tobago, the whole neighborhood will be watching. The summit will be Obama's first multilateral meeting with all 34 democratically elected Latin American heads of state (excluding Cuba). Confronted by serious economic problems domestically and unprecedented… Read more
The G-20 Summit in London promised to bring together the heads of the world's leading nations to address the global financial crisis. Instead, the summit agreed on measures that are by turn weak, vague, and sinister. When the summit dealt with the current crisis, it failed to move beyond platitudes or to acknowledge the failure… Read more
The G-20 convenes again this week, once more generating high hopes that progress can be made in addressing the economic crisis. Due to its size and diversity, the G-20 is an unwieldy body. Hence much of the media spotlight has shone on smaller groups, such as the U.S. and Western Europe.… Read more
On July 7, Presidents Barack Obama and Dmitry Medvedev will meet for their first full-fledged summit in Moscow. The two countries may have a window of opportunity to re-launch their relationship, which has been set back by Russia's intransigent positions and its litany of demands. While some in the U.S. believe that rhetoric alone can… Read more
The Senate canceled next week's recess to address the country's debt crisis. It's an issue in the headlines every day...… Read more
A dire prediction hit the news yesterday: A date has been set for the end of the "Age of America," — i.e., when China's...… Read more
The Washington Post reported today that the International Monetary Fund and various world governments warned U.S....… Read more
When Britain’s new Chief Secretary to the Treasury, David Laws, walked into his office last week, he found a letter...… Read more
The tragic events unfolding in Greece, where at least three people have died in political rioting protesting austerity...… Read more
The European Union (EU) has gone hat in hand to the International Monetary Fund (IMF) for assistance in bailing out one...… Read more
The proposed €110 billion ($140 billion) Greek rescue package announced on Sunday may well not survive the week....… Read more
The International Monetary Fund (IMF) is attempting to do what couldn’t be done at the international climate change...… Read more
Yesterday President Barack Obama asked his cabinet to make a total of $100 million in cuts among their departments. That...… Read more
Unraveling the meaning of the G-20 summit will be the work of months, if not years. Many of the announced measures are...… Read more
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