Daily Archives: January 16, 2014

Can Hollande get the French economy back on track?
By an unfortunate coincidence, President François Hollande’s efforts to relaunch his presidency with an announcement of bold economic reforms have coincided with the revelation that he appears to be having an affair with an actress. Meanwhile, the economy continues to struggle, and the government is engaged in an effort to block performances by the controversial comic Dieudonné. Gideon Rachman is joined by Hugh Carnegy, Paris Bureau chief, and Ben Hall, world news editor, to discuss whether France is in crisis, or whether it’s business as usual

  • Forget the “Fragile Five”: the list of countries exposed as central banks tighten monetary policy is longer than the moniker suggests.
  • A German man, estranged from his father, may still face a €9,000 bill for the father’s care costs in a legal case that has sparked debate across a nation obsessed with its ageing population and how to pay for its welfare.
  • Businesses in Germany worry about the impact of introducing a minimum wage.
  • In Sudan, economic problems and fears for South Sudan are destabilising Omar al-Bashir’s rule.
  • Sébastien Valiela discusses how he managed to get the infamous photographs of François Hollande .
  • The New York Times documents how a young woman was lured to North Dakota from the west coast by a job in the oil industry, only to find a land dominated by men, lower pay than expected and a high cost of living.

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TOSHIFUMI KITAMURA/AFP/Getty Images

By Jonathan Soble

Sermons from the IMF tend to make Japanese leaders fidget nervously in their pews – all fire and brimstone about budget deficits and the need for austerity. But Christine Lagarde’s warning about the evils of deflation is more likely to elicit a full-throated “amen”.

Successive Japanese administrations have promised to end deflation – the “ogre”, in Ms Lagarde’s description, that has menaced the country’s economy since the late 1990s. But under Shinzo Abe, prime minister since December 2012, and his central bank governor, Haruhiko Kuroda, deflation-fighting has become the overriding priority.

They have been getting results so far: prices of consumer goods excluding fresh food are rising nearly 1 per cent year-on-year, thanks to the Bank of Japan’s ultra-accommodative monetary policy and the related plunge in the value of the yen, which has pushed up the cost of imports. Read more