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Cuts in fuel subsidies to reduce the current account deficit has less impact with a depreciating rupee. The emerging markets crisis in 2014 focusses attention on the current account deficits of emerging market countries. A decline in foreign investment adds to India's difficulties.
Linked Articles
India Grapples With Soaring Energy Costs
Wall Street Journal 04/11/2012
Rupee Throws Oil on India's Subsidy ProblemWall Street Journal 08/21/2013
The need for stimulus to keep jobs for migrant workers and maintain social stability does not exist in 2012 the way it appeared in 2008, when about 20% of migrant workers lost their jobs and wages for migrant workers fell by 10%, according to estimates by the Chinese Academy of Sciences and Stanford University. In 2012 there is excess demand for labor and reports show the efforts to reduce the 60 hour work week in some factories is running into problems with a shortage of labor. This means less need for stimulus that would aggravate problems in the housing bubble and inflation.
Linked Articles
China's Workers in No Need of Stimulation
Wall Street Journal 06/04/2012
China's Wage Hikes Ripple Across AsiaWall Street Journal 03/14/2012
The bond swap of new bonds with long maturities reflecting a writedown of 53.5% for the old bonds with short maturities was finally achieved on March 9, 2012. By this time Greece's economy was shrinking badly and the new bonds were trading at levels that reflected the need for further writedowns only days after the deal. Prof. Cochrane at the University of Chicago and Prof. John Taylor at Stanford say French and German banks exaggerated the effects of contagion from the beginning to delay writedowns for as long as possible. The effects on the eurozone of the delays in tackling the problem early and decisively are negative or slowing growth and is likely to hurt the banks operating in that environment, raising questions about the wisdom of that strategy.
Linked Articles
Wall Street Journal 03/09/2012
Greece Passes Key Debt TestWall Street Journal 03/09/2012
Linked Articles
Tokyo Set to Raise Levy on Wealthiest
Wall Street Journal 01/11/2013
Prime Minister Noda says tax hike essential for Japan's sustainability - The Washington PostWashington Post 03/04/2012
Linked Articles
Policy âTroikaâ for Europe Financial Woes at Odds
New York Times 06/07/2013
The Tragic Greek SideshowWall Street Journal 02/22/2012
Surprisingly the Syriza government in 6 months in office did not come up with a plan to implement for tax evasion. This was a major issue for the IMF and in Greece's interest, even though it was going contrary to long standing practice in Greece as it was in Italy. Estimates of lost revenue are about $11 billion each year for tax evasion. By comparison the IMF payment due was less than $2 billion on June 30, 2015. Sustainable long term finances make this a major issue in Greece's own interest. Greece has an aging population and the number of retirees are growing in relation to young working people making this an important issue for stable finances under any administration, and regardless of the euro.
Linked Articles
How Greek tax evasion sunk the global economy
Washington Post 07/10/2012
A Hollow Target for Greek DebtWall Street Journal 02/18/2012
The RBI made a rate cut of 0.5 percentage point in April 2012, following a series of rate increases in 2010-2011 to control inflationary pressures. The RBI governor Devi Subbarao's view is that the government which faces a lack of political leadership and state elections needs to do more to increase growth.
Linked Articles
Wall Street Journal 04/18/2012
Indian Central Banker Hits His Government's SpendingWall Street Journal 02/14/2012
France's Socialist presidential candidate Hollande considers the EU-IMF programs a failure of governance in Europe. He predicts larger public contributions to Greece's debt after the elections in Greece and France.
Linked Articles
Watch Athens, Not Paris, This Weekend
Wall Street Journal 05/04/2012
French Candidate Hollande Assails European Policy on GreeceNew York Times 02/13/2012
Linked Articles
Move Over Mao: Beloved ‘Papa Xi’ Awes China
New York Times 03/07/2015
Heartland Return for Chinese LeaderWall Street Journal 01/31/2012
Under Spain's decentralized system of government regions prove education, healthcare and other services. The 2011 deficit target in Spain was exceeded largely because of spending by local governments. The new government of Mariano Rajoy has announced moves to control regional spending.
Linked Articles
Madrid to Curb Spending by Powerful Regions
Wall Street Journal 01/18/2012
Spanish Regional Governments to Get AidNew York Times 01/19/2012
Linked Articles
Chinese Car Makers Struggle to Lure Buyers
Wall Street Journal 04/21/2014
Car Makers Gauge Shift In China's Auto PolicyWall Street Journal 01/06/2012
Linked Articles
Tokyo Set to Raise Levy on Wealthiest
Wall Street Journal 01/11/2013
Tokyo's Move to Raise Tax Hits SnagWall Street Journal 12/27/2011
Linked Articles
Italy Leader, Monti, Tells Germany Austerity Isn't Enough
New York Times 01/11/2012
Leaders Grow Further Apart on SolutionsWall Street Journal 12/15/2011
Lower utility bills from lower natural gas prices and the offset from higher fuel efficiency of newer automobiles help push consumer spending slightly higher in the face of gasoline at average $3.92 per gallon in April 2012. Yet the cushion for American consumers remains weak say researchers at Stanford and the U.S. Federal Reserve.
Linked Articles
Wall Street Journal 04/16/2012
How to Build Buzz for Bud: More Alcohol, Lime-a-RitaWall Street Journal 03/29/2012
Linked Articles
Khairat Al Shater: The Brother Who Would Run Egypt
Wall Street Journal 06/22/2012
Muslim Brotherhood Leader Rises as Egypt's Decisive VoiceNew York Times 03/12/2012
Sales volumes high enough to make tablets surpass PC's by 2015, according to some estimates.
Linked Articles
Apple’s iPad price hits a sweet spot between popularity and profits - The Washington Post
Washington Post 03/06/2012
Apple Updates iPad With Some RefinementsNew York Times 03/07/2012
John Taylor and the Ifo Institue's Sinn say the recapitalization of Greece's banks and the lower interest rates negotiated after the March 2012 bailout make exiting the euro and achieving economic growth doable. The Papdemos government's need for time till 2015 to complete the program of changes, and the elections in April 2012 in which opposition parties outpolled Pasok and New Democrachy lays the political groundwork for the exit.
Linked Articles
Greece at new risk of being pushed off euro - The Washington Post
Washington Post 05/08/2012
A Better Grecian BailoutWall Street Journal 02/22/2012
Linked Articles
Obama Adviser's Strategy Is High Risk, High Reward
Wall Street Journal 10/31/2012
Plouffe, Obama Aide, Lends Firm Hand to CampaignNew York Times 02/20/2012
Efforts to revive the economy with aid from the IMF. IMF head, Christine Lagarde, will visit Cairo in August 2012 for discussions with the Morsi government.
Linked Articles
Egypt, IMF Chief to Discuss Loan
Wall Street Journal 08/16/2012
Muslim Brotherhood Looks West in Bid to Revive Egyptian EconomyWall Street Journal 02/17/2012
In response to the policy of the Reseve Bank of India (RBI), India's central bank, to hold off on interest rate changes till the government takes action in reducing the deficit, the Indian government lays out a plan to bring the deficit down to 3% by 2017, and 5.3% in the fiscal year ending March 2013. The government is under pressure to come up with an economic strategy to deal with the slowing economy with growth forecasts lowered to 5-6.5% for 2012. The risk of India's credit rating being being lowered to junk status and drastic slowdown in foreign investment is creating a crisis atmosphere after a period of indecison.
Linked Articles
India Lays Out Deficit Targets
Wall Street Journal 10/30/2012
Indian Central Banker Hits His Government's SpendingWall Street Journal 02/14/2012
Linked Articles
France Pins Hopes on Youth Jobs Plan
Wall Street Journal 12/25/2012
Spain Approves Changes to Labor PolicyNew York Times 02/10/2012
Linked Articles
In New High, Spain's Jobless Rate Nears 23%
Wall Street Journal 01/28/2012
Spain Approves Changes to Labor PolicyNew York Times 02/10/2012
Linked Articles
An interview with Viktor Orban, prime minister of Hungary - The Washington Post
Washington Post 04/07/2012
Hungary, Once a Star, Loses Its ShineNew York Times 01/16/2012
Linked Articles
Wall Street Journal 01/16/2013
China Shifts Foreign-Investment FocusWall Street Journal 12/31/2011
Linked Articles
Honda CEO Rethinks Car Maker’s Priorities
Wall Street Journal 12/05/2014
Honda Revs Up Outside JapanWall Street Journal 12/21/2011
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