Greek myths: A sixth myth is that if Greece defaults, it would have to create a new currency and so leave the eurozone.

The Greek epic continues. It will not end well if the people involved do not recognise they are clinging on to myths. Here are six, each of which pose(...)

A shopper is seen through large lantern decorations at a shopping mall in Beijing. Capital growth is falling after a huge investment boom in the 2000s, particularly in China. Photograph: Kim Kyung-Hoon/Reuters

It seems at first a puzzling scenario, and you might wonder whether it is possible at all: output can be at potential but still not be sustainable.(...)

A street vendor selling Greek shadow-puppet theatre figures  in Athens: Greece remains internationally uncompetitive, as shown by the sluggishness of its exports. Photograph: Kostas Tsironis/Reuters

Since the election of Greece’s Syriza-led government, negotiations over its place in Europe have gone terribly, with posturing on one side and anno(...)

‘In early 2011, the European Central Bank raised its intervention rate from 1 to 1.5 per cent. This was wildly inappropriate, and in the end it had to cut rates again and embark on QE.’ Photograph: Daniel Roland/AFP/Getty Images

Why are interest rates so low? The best answer is that the advanced countries are still in a “managed depression”. This malady is deep. It will not(...)

Shoppers walk through Mangaldas Market in Mumbai. Speculation that prime minister Narendra Modi’s policies will boost economic growth has propelled India’s Sensex to the world’s third-biggest gain among major markets during the past 12 months. Photograph: Dhiraj Singh/Bloomberg

The most significant economic story of the past 3½ decades has been the rise of China. The second most significant story has been the rise of India. A(...)

The primary driver of the rise in global output is expected to be a 75 per cent jump in global average real output per head, as the prosperity of emerging economies catches up with that of high-income countries

Our ancestors lived in eras we call the Stone Age, the Bronze Age and the Iron Age. Ours is the “fossil-fuel age”. The energy we have extracted from t(...)

China saw a rise of 70 percentage points in the ratio of corporate and household debt to GDP between 2007 and last year. Photograph: Johannes Eisele/AFP/Getty

Balance sheets matter. This is the biggest lesson of the financial crises that have rolled across the world economy. Changes in balance sheets shape t(...)

At the very least US spenders will, once again, have to pull not only their own economy, but much of the rest of the world. Photograph: Michael McCloskey

Why is the dollar so strong? It has soared 25 per cent on a real trade-weighted basis in the past four years, evoking memories of ascents in the early(...)

An elderly woman reacts as her acquaintances board a bus to flee due to a military conflict in Debaltseve, Ukraine. The IMF is seeking to negotiate a new multiyear extended fund facility with the troubled country. Photograph: Sergey Polezhaka /Reuters

The West does not like to think it is at war with Russia. Yet the Russian government seems to think it is at war with the West. For President Vladimir(...)

Yanis Varoufakis, Greece’s finance minister (left), with George Osborne, the UK chancellor of the exchequer, in London on Monday. Photograph: Matt Dunham/Pool/Bloomberg

Maximum austerity and minimum reform have been the outcome of the Greek crisis so far. The fiscal and external adjustments have been painful. But the (...)