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Open Think Tank Articles

September 26, 2011 | Greece and Italy Must Abandon Their Old Ways

Clemens Wergin: Why should German taxpayers be forced to pay for a debt crisis caused by tax evasion and corruption in Greece and Italy? Solidarity is not a one-way street and the German public should expect the Greek and Italian governments to take the blame for the economic mess and initiate much-needed reforms.

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September 24, 2009 | The G20 Pittsburgh Summit - Symbolic Policies or Fundamental Reforms?

Johannes Klocke: In principal, the G20 process is right. Yet, the emphases of the G20 agenda remain questionable and problematic. It is becoming more and more likely, that even the deepest crisis since the Great Depression will not suffice to initiate fundamental reforms of the financial system.

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April 17, 2009 | Greening the Debt

Jakob von Weizsäcker: It is still possible to stop climate change in this current economic environment. Governments should “green the debt” from their fiscal stimulus packages by repaying it with proceeds from higher carbon taxes and cap and trade systems, improving both economic and environmental sustainability.

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February 9, 2009 | The Return of the N-beast

André Budick: Thinking the Unthinkable: What if private banks, who have to work to jumpstart the global economy once again, can’t be saved for the time being? What if only the wholesale nationalization of entire national banking systems is the chance for a fresh new start?

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Global Must Read Articles

May 16, 2012 | Berlin's Competitiveness Gains Perpetuate the Crisis

European leaders must pay close attention to the “austerity vs. growth” debate. ++ Although there is much condemnation of Europe’s austerity cure, critics are unsuccessful in finding solutions to fund growth. ++ Debtors must become more competitive in the global market. ++ Spain cut unit labor costs by 8.5%, compared to its European counterparts, between 2008 and 2011. ++

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November 1, 2011 | Europe Threatens Obama's Reelection

The biggest danger to Obama’s re-election bid is the possibility of the European crisis spilling over to the US. ++ While the US economy is starting to show signs of gradual recovery, mounting European debt could send the American economy in a downward spiral. ++ Republican presidential candidates will use this opportunity to chastize Obama as ‘too European’ for trying to bring the US closer to a

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October 27, 2011 | Eurozone Summit Fails to Address Unemployment

As Eurozone leaders agreed to continue with austerity and forced the banks to write off 50 percent of Greece’s debt, the effect of these measures will hardly be felt by Southern European countries plagued by unemployment. ++ Medium and small businesses are teetering on the edge of bankruptcy resulting in massive layoffs and a drastic drop in productivity. ++ Bailouts and austerity measures may

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September 1, 2011 | Smiles on Surface, but Distrust Between US and China

The US-China relationship suffers from a mutual lack of trust. ++ A zero-sum view of the world sees any Chinese economic or military gains as “expansionary” at the expense of the West, just as Beijing is suspicious of a dysfunctional and “trigger-happy” US. ++ Despite decades of interaction, “increased interdependence has not led to better understandings”

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August 24, 2011 | China Must Rethink Economic Growth Model

China has criticized the US for its debt problems, but Beijing’s own growth model is “fraught with difficulties”. ++ Since US and EU debt issues leave its export-driven economy vulnerable to market fluctuations, Beijing must bolster domestic demand. ++ It can do so by relocating industry to cheap-labor inland provinces and encouraging coastal regions to focus on service and

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June 9, 2011 | Greece: to Pay or not to Pay

Germany’s decision “to ask Greece to offer its debt holders a seven-year term extension” draws more attention to the deep economic, social and political deadlock of the heavily indebted state. ++ Against the background of ingrained wide-spread corruption, loss of export competitiveness, enormous price rise, which entailed Greece’s accession to the EU, and the

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January 13, 2011 | Portugal's Partial Reprieve

While the panic surrounding Portugal subsided a little yesterday, the reprieve may turn out to be a temporary one at best. ++ Investors continue to fear a default on Europe’s periphery. ++ Moreover, European policymakers’ insistence that struggling countries like Portugal cut their budgets undermines the economy’s recovery. ++ The Bank of Portugal cautions that GDP will decline in

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November 29, 2010 | Europe is Edging Towards the Unthinkable

“It is easy to criticise eurozone governments, but how about some constructive advice?” ++ The EU chose not to establish a contingency plan for the Euro during the past decade of prosperity. ++ Now, the longer you wait the more radical the solution needs to be. ++ National debt should be separated from financial debt and a common European treasury bond should be created but there is no political

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November 18, 2010 | The Price of German Leadership

The euro, the European Union’s boldest and most ambitious project, is under threat. ++ This has has damaged the EU’s reputation around the world. ++ However, the crisis has seen the emergence of a genuine EU leader in Angela Merkel. ++ This is not surprizing considering Germany’s current economic strength and recent trend of assertive diplomacy. ++ However, concerns have been expressed that

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January 23, 2009 | The US Bubble Will Not Be Helped More Debt

Obama spoke of sacrifice, but the only ones sacrificing are the Chinese, Japanese and Saudis who fund America’s debt. ++ These countries are the sole creditor nations able to buy bonds to finance the spending expected by Americans. ++ Once they have invested, these creditors will be trapped, as any attempt to rid themselves of the bonds will collapse their value. ++ America is bloated: 5% of

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April 12, 2007 | Kenneth Rogoff Asks What Keeps the Dollar so Strong

The dollar should be much weaker relative to America’s competitive position, according to Kenneth Rogoff of Harvard University. In 2006, interest payments for US debt amounted to 6.5% of GNP. US borrowing makes up more than two-thirds of combined excess savings of all surplus countries in the world. The former IMF chief economist reports that domestic consumption, Americans’ confidence in their

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