Backgrounder posted July 24, 2012 by Salim Furth, Ph.D.
What Debt Crisis? A Default Primer for Governments
Abstract:
A government that systematically finances spending through unsustainable levels of borrowing eventually finds itself in a crisis. The crisis is often triggered when economic growth slows or interest rates rise, leading to a vicious cycle of larger and larger interest payments. Often, such crises result in default on government…
Issue Brief posted May 9, 2012 by J.D. Foster, Ph.D.
Germany’s Economy Is Badly Exposed
As the European economic crisis once again comes to a boil, many wonder how the Europeans put themselves in such hot water. This is a political crisis on top of an unemployment crisis, which bubbles on top of a fiscal crisis, underneath which is the critical element of an unsustainable imbalance in trade flows. While the trade imbalances within Europe have many causes,…
WebMemo posted May 20, 2011 by Theodore R. Bromund, Ph.D., J.D. Foster, Ph.D.
President Obama Visits the Irish Financial Crisis
When President Obama visits Ireland on May 23–24, he is expected to visit Moneygall in County Offaly, the ancestral home of his mother’s family. While finding Irish ancestors is a favorite electoral sport of American leaders, the President would be better advised to spend his time studying the Irish financial crisis, which has important lessons for America.
If this…
Special Report posted July 15, 2010 by Robin Harris, D. Phil.
Europe: What Future?
Abstract: The pretense that the European Union is successful and stable—and that the euro is a successful and stable currency—has been exploded by events surrounding the financial bailout of Greece. No one knows where the contagion will spread or how it may end. The world’s financial markets have occasionally teetered on the edge of panic. But the full implications of…
Backgrounder posted June 22, 2010 by J.D. Foster, Ph.D.
What the EU Bailout Means for the U.S.
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 in Europe today is to peer through a clear window into America’s own future. As the nation runs…
WebMemo posted May 6, 2010 by Sally McNamara, J.D. Foster, Ph.D.
Five Reasons Not to Support a Bailout of Greece
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 €80 billion in…