Economy Archive

Free exchange: Fluid dynamics

  AT FIRST glance, the labour markets in America and Europe could not be more different: in the former unemployment has fallen steadily since 2010, while in the euro zone, it is still close to an all-time

Japan’s bond market: Quantitative freezing

  AS PART of its quest to end Japan’s 15-year-old deflationary torpor, the Bank of Japan is buying around 70% of all newly issued Japanese government bonds (JGBs). Whether this will boost inflation to the central bank’s

Polish banks: Lucky lenders

  JUST as Poland’s economy and foreign-policy clout have grown quietly but significantly, so its banking system has become one of Europe’s little-known star performers. Poland’s young, technophile and internationalised elite have worked out how to make

Free exchange: Revisiting Ricardo

  DEFENDERS of globalisation often say that, whatever distress it may cause for rich-world workers, it has been good for poor countries. Between 1988 and 2008, global inequality, as measured by the distribution of income between rich

Free exchange: Aid to the rescue

  FIFTY years ago the first United Nations Conference on Trade and Development launched a debate about how much money rich countries should give to poor ones to reduce poverty and bolster growth. In the end, the

South African banks: Payday mayday

PERHAPS because they had no access to banking during apartheid, poor South Africans have been gorging themselves on credit ever since. A glut of consumers impatient to enjoy a middle-class lifestyle has made the fortunes of payday

Banco Espírito Santo: Sharing the pain

  THE Espírito Santos are a banking dynasty whose name is as resonant in Portugal as the Rockefellers in America. But their reign ended abruptly on August 3rd as Banco Espírito Santo (BES), a big Portuguese bank

European banking tests: Exam nerves

THE collapse of Banco Espírito Santo is a salutary reminder that Europe’s banking woes have not gone away. This year’s supervisory campaign to end the lingering European banking crisis looks even more essential than before. The initiative

Free exchange: Tilted marine

THERE is no better symbol of the benefits of globalisation than the container ship. More than 9 billion tonnes of goods and materials were transported by sea in 2012, with trade helping to lift global growth rates.

Fund managers: Assets or liabilities?

  FINANCIAL crises may seem a familiar part of the economic cycle, but they rarely repeat themselves exactly. In the 1980s the locus was Latin America; in the late 1990s, Russia and South-East Asia; in 2007-08, American