Roads to Deeper European Integration

by Henrik Braconier and Mauro Pisu, Voxeu.org Despite substantial integration, national borders still provide a large obstacle to trade in Europe. This column shows that much of these ‘iceberg costs’ can be attributed to underdeveloped infrastructure, namely roads. Improving international roadways to the level of national ones could substantially raise gains to trade.

Clarifying the Debate about Deflation Concerns

by Mickey Levy, Voxeu.org A popular view among economic commentators is that rich countries face a serious risk of deflation, and should adopt aggressive macroeconomic stimulus policies to ward it off. This column argues that despite similar headline inflation rates, the US, Europe, and Japan in fact face very different macroeconomic conditions. In the US, …

Hedgehogs and Foxes

Age of Wisdom, Age of Foolishness (14) Written by Adam Whitehead, KeySignals.com The fox knows many things, but the hedgehog knows one big thing. (Archilocus: Greek mercenary and poet) Going into Davos, Policy Maker Speak and market price action conspired to create the global perspective that the global economic recovery was losing momentum. Observers had …

Why Hasn’t Japan’s Massive Government Debt Wreaked Havoc (Yet)?

by Charles Yuji Horioka, Takaaki Nomoto and Akiko Terada-Hagiwara Originally posted in Voxeu.org 21 January 2014 Japan’s sovereign debt-to-GDP ratio is higher than any country in Europe and more than twice the OECD average. This column explains why Japan’s massive government debt did not wreak havoc in the past. Robust domestic saving and a temporary …

Stratfor: More Assertive German Foreign Policy

By George Friedman, Founder and Chairman, Stratfor with Marc Lanthemann The Ukrainian crisis is important in itself, but the behavior it has elicited from Germany is perhaps more important. Berlin directly challenged Ukraine’s elected president for refusing to tighten relations with the European Union and for mistreating Ukrainians who protested his decision. In challenging President …