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While almost every economy in the Middle East and North Africa region is projected to accelerate in 2011-2012, significant downside risks to this forecast remain.
As fears rise over currency clashes, policy makers must confront the challenges of a two-speed global economy where China and other emerging markets are surging ahead while Europe, the United States, and Japan face a number of serious economic concerns.
Policy makers around the world who are pushing China to revalue its exchange rate should note that an appreciation of the renminbi—unless accompanied by an acceleration of China’s domestic demand—will be of little benefit to most economies.
An examination of past episodes of currency tension suggests that competitive devaluations are not likely today. But the forces behind past collapses remain highly relevant and policy makers cannot afford to be complacent.
In light of North Korea's recent attack on Yeonpyeong Island and rising tensions on the peninsula, the need for ratification of the Korea-U.S. Free Trade Agreement is stronger than ever.
European economic adjustment will be both economically and politically painful, but Europe's financial crises will continue to recur until real fundamental rebalancing occurs.
The rise of new powers in the developing world has already begun to reshape international relations, but the characteristics of any potential new international order remain unclear.
In spite of China’s high growth rates, the country still faces a number of economic challenges, from trade tensions with the West to reducing income inequality domestically.
In its efforts to rebalance the Chinese economy away from overinvestment and toward increased household consumption, Beijing can draw lessons from Japan’s experience with a similar transition.
Policy makers should heed the lessons of the Great Recession and enact the structural and regulatory reforms needed to protect the world against the next crisis.
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