Don’t Close Taxpayers Wallets too Fast

News of ongoing economic uncertainty surrounds us.  In delivering his semiannual monetary policy report to Congress recently in Washington, U.S. Chairman Ben Bernanke urged drastic reduction in the government’s long-term deficit. "The United States is on an unsustainable fiscal path looking out over the next couple of decades."  The same day, 25 European leaders signed a new fiscal path to promote spending discipline.  Spain has announced that deepening recession meant it would abandon deficit-reduction targets for the year. The European Central Bank has injected €1 trillion ($1.3 trillion) into banks in recent months. This has been alongside a provisional agreement on a second package of loans for Greece worth €130 billion ($172 billion).

Keep reading Show less

Is 2012 Africa’s Year of the Dragon?

At the 2012 World Economic Forum’s Annual Meeting in Davos last week, a record 2,600 global leaders discussed a frenetic mix of economic and social issues facing the global community. A number of panels (some of which were overlooked with all the talk of the unfolding Eurocrisis) focused on the important transition Africa is making from an underdeveloped continent to one characterized by sustained growth -- backed by strong trade and investment flows. 

Keep reading Show less