Each country for itself – My Monday column

Growth has made a comeback but each country already wants to take its own path. Unity is no longer on the cards and the world economy is fast going down a very different road.

During the recovery in 2016 and 2017, the worldwide situation was relatively stable, with no major imbalances, and the central banks cut some slack when required to make it through any bumpy patches. This approach worked fairly well as the pace across the various areas of the world became more uniform, driving growth and trade momentum, and economists were constantly forced to upgrade their forecasts.

But those days are gone, and this cooperative and coordinated dimension has disappeared. Continue reading

Larry Summers will not be next Fed’s President

Larry Summers has declined the opportunity to be appointed Chairman of the Federal Reserve to replace Ben Bernanke whose term will end on January 31. (The letter is available in pdf format here Summers’ Letter )
This reopens the debate on the successor to Ben Bernanke. Janet Yellen could become a favorite. However if she has a strong support by economists (see the petition here) she does not seem to have a strong support of the White House. Continue reading