10th November 2011
Paul Krugman compares Italy's debt crisis to the concept of original sin. "By joining the euro, Italy took a bite of the apple – it converted its advanced-country status, as a nation issuing debt in its own currency, into original sin, with debts in someone else's currency." New York Times
In this Economic Brief, Juan Carlos Hatchondo and Jonathan Tompkins shed light on why the US recovery from the 2007-09 recession is an outlier in historical terms. Richmond Fed
Vuk Vukovic explains why the UK's attempt to stimulate growth by buying corporate bonds from small and medium-sized businesses won't work. "This will create an artificial demand for business loans which could lead to an even more dangerous bubble than the mortgage loan bubble." Adam Smith
"Nearly all economic forecasts agree that high unemployment in much of the developed world will most likely persist for years to come." But could even this dire projection underestimate future unemployment rates? Project-Syndicate
This interactive guide to reducing government debt shows current IMF forecasts but also allows you to input some basic economic assumptions to see where general government debt as a percentage of GDP might head. The Economist
Got any other suggestions for what we should be reading? Tell us below?
To receive our free email newsletter sign up here.