Comment, analysis and other offerings from Wednesday’s FT,
Martin Wolf: Why G20 leaders will fail to deal with the big challenge
What is needed is a large increase both in aggregate demand and a shift in its distribution, away from chronic deficit countries, towards surplus ones. On both points, progress will be far too limited.
John Kay on when all is not normal
“Fat tails” proved the downfall of fat cats. Extreme events, especially extreme adverse events, happen much more often than they are supposed to in the world of classical statistics.
Britain is not a regulatory island
Callum McCarthy, former chairman of the Financial Services Authority, writes: The UK’s traditional approach has been to resist processes that would impinge on its sovereignty or independence. It is far from clear that this is in the UK’s interest.
Asia is the victim if the bond bubble bursts
Yu Qiao, professor of economics in the School of Public Policy and Management, Tsinghua University, writes: No other international monetary system offers a viable alternative. However, we can make the main reserve currency power more accountable by creating an instrument to help manage the global crisis.
Editorial comment on energy games
Just when it seemed as if the European Union was finally getting its act together on a common energy policy, along comes a member state and throws a bucket of sand into the machine.
Lex on debt in Japan
As the rich world’s most indebted nation, Japan also faces the biggest challenge footing the bill – a salutary lesson for other big spenders. Pump priming in the 1990s has left Japan with a public debt burden nearing 180 per cent of GDP.
FT video interview: Nestlé chair Peter Brabeck
Discussing the outlook for global consumption.
Maverecon: Willem Buiter asks you to torch his car
The former Bank of England MPC member asks if he is the only one to think that tax incentives for new car purchases - “cash for clunkers”, in the words of Alan Blinder - are a daft idea.
