Presidential guards parade before newly appointed ministers and deputy ministers at a swearing in ceremony outside the presidential palace in Athens on January 27th, 2015. Photograph: Marko Djurica/Reuters

Sometimes the right thing to do is the wise thing. That is the case now for Greece. Done correctly, debt reduction would benefit Greece and the rest o(...)

The SNB has embraced the risk of deflation from which the ECB wishes to escape. Photograph: Reuters

These are exciting times in European central banking. Last Thursday the Swiss National Bank suddenly terminated its successful peg to the euro. This w(...)

Political leaders walking in solidarity after the attacks in  Paris. Photograph: EPA

How are we to understand last week’s events in Paris? Why are people prepared to kill and die for their beliefs? How should liberal democracies respon(...)

“The only function of economic forecasting is to make astrology look respectable,” – John Kenneth Galbraith

As the late John Kenneth Galbraith remarked: “The only function of economic forecasting is to make astrology look respectable.” But that does not mean(...)

Out of the crooked timber of humanity, no straight thing was ever made. This famous remark of German philosopher Immanuel Kant is particularly relevan(...)

German Bundesbank president Jens Weidmann: argued “it is fanciful to believe that monetary policy tools can sustainably lift the growth potential of an economy”. Photograph: Krisztian Bocsi/Bloomberg

In 2014, we have commemorated the 100th anniversary of the start of first World War and the 25th anniversary of the fall of the Berlin Wall. The fo(...)

The decline in oil prices should be helpful to the world economy, albeit with caveats. Photograph: Getty/iStockphoto

What does the decline in oil prices mean for the world economy? The answer depends on why it has happened and how long it might last. But overall it s(...)

Shibuya Crossing in Tokyo. Demand deficiency syndrome has afflicted Japan since the early 1990s and the US, euro zone and UK since 2008 at the latest. Photograph: Getty Images/Flickr RM

The principal high-income economies – the US, the euro zone, Japan and the UK – have been suffering from “chronic demand deficiency syndrome”. More(...)

A man walks past a restaurant in the Dotonbori amusement district of Osaka,  Japan, yesterday. The difficulties caused by fiscal austerity have become particularly evident in Japan and the euro zone. Photograph: Reuters

David Cameron, the UK prime minister, states that “red warning lights are once again flashing on the dashboard of the global economy”. The lights are (...)

‘Atmospheric concentrations of greenhouse gases are at levels not seen in at least 800,000 years. In addition, human-caused emissions of such gases have risen consistently.’ Photograph: Getty Images/iStockphoto

The Republican victory in the US midterm elections was a triumph for its strategy of sustained vilification of the president and obstruction of his po(...)