Several reasons have been given for Brazil’s economic slowdown: a self-inflicted sudden stop caused by capital controls; currency appreciation, making exports more expensive; and falling demand for commodities, especially from China.
But if Brazil really wants to hold onto its position as a leading emerging market, it must address structural problems, starting with infrastructure and education. And as Chart of the Week shows, it has a lot of ground to make up. Continue reading »
By Bernd Braasch of the Bundesbank
The financial crisis has clearly revealed a growing emphasis on short-termism in international finance, just when the global economy needs a new financial architecture in which long-term finance and sustainability play a central role. Continue reading »
Wednesday’s opening panel at the World Economic Forum’s annual India meeting was entitled “Rebooting India” – a rather ominous slogan as many of the participants noted.
And while India’s law minister, two local business chiefs, and the CEO of Nestle all took their turn in analysing the country’s economic woes, it was Harvard economics professor Gita Gopinath who found the most convincing argument. Continue reading »
Istanbul has been swarming this week with delegates from the World Economic Forum, gathered at an event that underlines Turkey’s aspirations to play a bigger role in the world. The meeting is officially addressing the Middle East, North Africa and Eurasia, mirroring Turkey’s view of itself as a power with growing influence in all three regions.
But the real agenda is the effect on Turkey of the eurozone crisis – and any Greek exit. Continue reading »