Daily Archives: September 17, 2012

One of the few issues on which Barack Obama and Mitt Romney agree is the need for tax reform. Since the last overhaul in 1986, loophole after loophole has been added, producing a tax system that is complex, unfair, inefficient and detrimental to growth. Today, tax reform must also address three major challenges: escalating federal debt, rising income inequality and intensifying global competition. Continue reading »

Eurozone leaders have decided to create a banking union to help break the vicious circle between banking fragility and state insolvency. This is a bold response to the growing financial fragmentation of the single currency area. Discussions on concrete proposals for a single supervisory mechanism will start soon. They are bound to be highly complex, technical and controversial, because mistrust prevails and participant countries hold different views. However, it is important they succeed. Continue reading »