Global central banks were back in the spotlight on Thursday, as the Bank of Japan (BOJ) finally decided to emulate the U.S. approach to the economic crisis. By engaging in unprecedented aggressive monetary easing, Tokyo is throwing the kitchen sink at deflation. This time, neither the Federal Reserve (FED) nor the European… Read more >
In this latest commentary originally published by the Peterson Institute for International Economics, PIIE Senior Fellow and frequent AICGS contributor Jacob Kirkegaard examines the role of brinksmanship among politicians in both Europe and the United States, including an analysis on the effects of the adoption of such a policy. “Why Europeans and Americans… Read more >
The recent failure to reach a consensus on the EU budget in Brussels came as no surprise. The battle lines had been drawn well before the impasse was declared official by EU President Herman van Rompuy. Those lines run, not surprisingly, between the countries desiring budget cuts and those pushing for increases…. Read more >
The gathering of European leaders in Brussels is successfully meeting the very low expectations observers had at the onset. As we wrote at the beginning of the week, this summit was not meant to be the forum tasked with making any specific decisions. Instead, it merely sets the stage for the upcoming… Read more >
This report entitled Completing the Euro: A road map towards fiscal union in Europe, originally published by Notre Europe, explores the steps that lie ahead for Europe, specifically the euro zone area, to help get their fiscal house in order. From the introduction of a banking union to implementing the necessary measures for… Read more >
Throughout the year AICGS has the pleasure of hosting private lunch discussions with policymakers and advisors that play a role in strengthening the U.S.-German relationship. We are pleased to host a special guest, German Ambassador Peter Ammon, on October 30, 2012. Ambassador Ammon will discuss the current developments in Europe with a particular focus on the European strategy to address the debt crisis. He will also discuss the domestic debates in Germany surrounding these issues.
The struggle over sharing the burden of a weak economy in Europe has generated tension not only between countries, but also within them. Germany is no exception – the national debate about subsidies for the Länder is reflective of the larger European debate about fiscal reform.
Looming on the horizon, January 1, 2013 and the beginning of sequestration’s effects are approaching closer and closer. A consequence of the Budget Control Act of 2011, budget sequestration is a series of automatic cuts of $54.7 billion annually between 2013 and 2021 to both defense and non-defense spending. Although non-defense spending… Read more >
I was speaking with a German friend at a European think tank a few days ago. He was swamped with press inquiries. “Journalists only want to know one thing,” he told me: “What does Angela Merkel want?” I have often asked myself the same question. Of course, only the German Chancellor can… Read more >
Once again the uncertainty surrounding Greece has plunged Europe into crisis mode. The euro zone is fighting on three fronts: it is trying to keep Greece on course, save Spain from its banks, and define a middle-term strategy for growth. The crisis really is back with a vengeance.