Comment, analysis and other offerings from Monday’s FT,
Wolfgang Munchau: Making the case for a weaker dollar
Imagine a world with a small current account deficit in the US, a somewhat larger deficit in the eurozone and a not too excessive Asian surplus. In such a world, economic commentators would no longer bang on about global imbalances and would have to find a different subject.
Clive Crook: It is too early to laud Obama — or to be disappointed
One might say a lot about the bizarre decision to give Barack Obama the Nobel Peace Prize, starting with a few things about the panel that awarded it. Something you cannot say is that it is good news for the president.
How to avoid greenback grief
Roger Altman, chairman of Evercore Partners and was deputy US Treasury secretary under President Bill Clinton, writes: more poor economic data have put Washington in a nearly impossible fiscal position. The US economy requires more stimulus than provided by the original package passed in March. But the dismal deficit outlook poses a huge longer-term threat. Indeed, it is just a matter of time before global financial markets reject this fiscal trajectory.
We need more responsible corporate ownership
Paul Myners, UK Treasury minister and a former fund manager, writes: Property rights are supposed to be at the centre of capitalist economies. Ownership encourages responsibility and initiative. But many of the most important capitalist entities, listed corporations, are bordering on the ownerless.
Editorial Comment: Wall Street has its attractive side too
Before the havoc created by last year’s global financial crisis, it was more or less unquestioned that for a country to have a financial centre with the global standing of the City of London or Wall Street was devoutly to be desired.
Lex on carrying on
Like “profit taking” for stocks, “carry trades” is the answer when clueless about foreign currency markets. A carry trader borrows in a low-yielding currency to buy in a higher yielding one. Trouble is, data is patchy. Monitoring the volumes going through some exchanges can give a glimpse of hedge fund activity, but the actions of banks, individuals and other investors remain a mystery.
Willem Buiter’s Maverecon: Who speaks for Europe in the G-whatever?
When reality changes, even international organisations eventually catch on and up. Germany, the UK, France and Italy are global bit players at best now. They only matter if they act jointly. The way to do this is through the EU – but with a twist.
FT Video interview with Bruce Greenwald
John Authers discusses the relevance of Benjamin Graham’s value investing theories with the Columbia Business School professor and manager of First Eagle Funds.