Global Economy, Competitiveness, Government Policy, Economic Environment, Regional Economic Integration, Money & Finance, Currency
This report surveys four types of proposals aimed at solving the EMU’s various crises. Only one of the four stands a realistic chance of being implemented in the next decade. What the EMU needs is an immediate implementation of a set of minimal conditions for the survival of the common currency. The paper delves into individual policy planks and assesses their chances of adoption in the next decade. The common currency faces long odds of survival beyond the next few years.
The European Central Bank is making another attempt at stability through dramatic measures. Europe's falling prices, currency, punitive rates on bank profits, and convoluted politics all complicate the effects of policymaking. Recent data on industrial production and GDP have been promising, however.
Risk aversion, high unemployment, growth slowdowns, recessions, and geopolitical crises in key global economies are just a few of the factors holding back global growth. Overall, tighter financial conditions are leading to stock market corrections and a loss of confidence.
In an era full of “unthinkable” events, the world is now confronted with what might become the largest change in the global economic order since the end of the Cold War. Stemming from a close and angry UK election, we all woke up last Friday morning to find that the world’s fifth-largest economy