Comment, analysis and other offerings from Wednesday’s FT,
Martin Wolf: Volcker’s axe is not big or sharp enough
“I admire Mr Volcker and strongly support his desire to develop a financial sector that supports the wider economy…”, writes the FT’s Wolf. Equally, I agree that part of the solution is indeed structural. But these proposals are, in important respects, unworkable, undesirable and irrelevant to the task at hand. The president may indeed be desperate. But much more work is needed.
Michael Pettis: Why a trade war is likely this year
For two years some commentators have argued that the contraction in global demand set off by the 2008 crisis would lead to a trade war, rather like the 1930s, writes Pettis, finance professor at Peking University and an associate with the Carnegie Endowment. With anger already being expressed over disordered currency markets by some leaders before next month’s G7 summit, 2010 is already looking like the year that proves them right.
Glenn Hubbard: A true Marshall plan for Haiti
The tragedy in Haiti has attracted an outpouring of aid from governments and NGOs in the developed world. That is only for the good, writes Hubbard, dean of Columbia Business School and chair of the Council of Economic Advisers under President George W. Bush. But what happens after, when the immediate crisis is past and Haiti moves from relief to recovery?
Lex on the UK economy
Break out the champagne: after an 18-month slump, the UK is now technically out of recession. But only just. The last big economy to limp out of the downturn did so at a slug-like 0.1 per cent pace. It could have been worse, given the outsize role of financial services in the UK economy and the housing bubble. For now, though, official statistics continue to quash any burgeoning sense of optimism.
Davos 2010: In-depth
See the FT’s news, comment and blogs from the gathering of business, political and economic leaders at this year’s World Economic Forum in Davos.
The Short View: Asia
The axis of worry has shifted to Asia, writes the FT’s John Authers. Just as the Pacific Rim led world markets out of their slump at the end of 2008, so they are now leading the first true correction since the relief rally took hold.
Money Supply: Phew! Japan’s recovery is intact
It’s still a long way back to 2007 export levels but Japan’s recovery trend is very much intact, writes the FT’s Robin Harding. This is a strong signal for the Q4 GDP numbers due in a few weeks, and for the Japanese economy’s momentum in the first quarter of 2010.
Letters to the Editor
- Pledge new money to climate finance
- Proprietary traders should invest in themselves
- Tackle Greece’s deficiencies directly