Quantitative easing and austerity have done little to stop the EZ's periphery economies sliding towards depression. Policy Insight No. 62 argues that new money creation can finance deficits without increasing public debt.
Richard Wood, Friday, August 31, 2012 - 00:00
Barry Eichengreen, Thursday, September 30, 2010 - 00:00
The "international currency war" mentioned by Brazil's finance minister poses massive dangers for the world trade and financial systems. This column by one of the world's most respected international economists argues that there is a better way. The G3 should engage in quantitative easing so they all can export more to each other. For the emerging markets, the danger lies in inflation, asset bubbles, and trade retaliation. To shield their key manufacturing sectors, they should encourage the domestic demand for manufactures.