Standpoint
26.12.09
A Way to Share in a Nation’s Growth

Borrowing a concept from corporate finance, governments could sell a new type of security that commits them to paying shares in national “profit,” as measured by gross domestic product. >>

The idea of imposing a tax on financial transactions, also called the Tobin tax after the economist who first proposed it, is back in vogue. It has strong political appeal, catering to demands to punish banks for the crisis they have bestowed. It satisfies the political need to do something to avoid a repeat of the crisis. >>
14.12.09
Too Big to Reform?

In this new world, the dollar has shifted from being almost the sole “reserve currency” of many countries to being the primary “investment currency”, a role that it will continue to play far into the future. >>

The near global financial meltdown and ensuing downturns left the Anglo-Saxon nations pondering what they should do both to set their economies on a path toward recovery and to avoid a similar crisis in the future. >>

We don’t need to reinvent the wheel; we just need to follow up on the commitments made ten years ago. Dealing with the short-run challenges of the current crisis should not distract us from the objective of preventing future meltdowns. >>