Daily Archives: October 27, 2008

By Michael Spence

The accelerating asset deflation globally is going to cause a deep global recession. The deleveraging process is driving emergency sales of assets, capital hoarding and asset prices (including exchange rates) to overshoot any reasonable estimate of intrinsic values. Read more

By Jeffrey Sachs

Before our political leaders get too fancy remaking capitalism next month at the Bretton Woods II summit in Washington, they should attend to urgent business. Since the closure of Lehman Brothers triggered a global banking panic, political leaders in the US and Europe have successfully thrown a cordon round their banks to prevent financial meltdown. What they have not done yet is to co-ordinate macroeconomic policies to stop a steep global downturn. This is the urgent agenda. Read more