Comment, analysis and other offerings from Friday’s FT,
What is needed for a lasting recovery
Olivier Blanchard, chief economist of the IMF writes: sustained recovery requires decreased domestic US spending and increased domestic spending in China and much of the rest of the world, together with adjustments in exchange rates. Global co-operation played a crucial role in the past year in avoiding a worse crisis.
Think small to tackle the world’s problems
Never say never. Because of the economic crisis, habits that seemed unalterable are suddenly being altered. Americans are now saving more and consuming less.
Editorial comment: King seeks empire
The UK’s future financial regulatory structure is still being moulded and Mr King is setting out the case for putting his institution in charge. The government is resistant, preferring to work with the current distribution of powers. But it should give the governor what he wants. Mr King, in return, should show some contrition for the Bank’s mistakes.
Lex on Glencore
For all its Swiss mystique, Glencore, the world’s largest commodity trader, is not so shy after all. Although it is well known in debt markets, its openness to considering an initial public offering marks a paradigm shift for a partnership wholly owned by its senior management for 30 years.
Martin Wolf: Honesty is the best fiscal policy
As I have argued in two recent columns, the fiscal position has become a huge medium-term challenge. It is also an obvious symptom of gross policy failure: structural public sector net borrowing is estimated by the Treasury at 9.8 per cent of gross domestic product this financial year.
Markets Insight: When it comes to global banks, size matters
Gillian Tett asks: Do the big global banks need to be cut down to size? That question has been hovering, half-stated, over the financial system ever since Bear Stearns blew up.
Lombard: Sir Fred’s RBS pension compromise comes too late
In a few cultures, showing remorse is sufficient to win redemption. When it comes to discredited chief executives, an additional middle step is clearly required: reimbursement.