Will the Global Economy Tumble Off America’s Fiscal Cliff?
Forget all of the talk about the rise of China and the shift of economic power from West to East. The U.S. economy remains the largest and most important in the world, and what happens in America still determines what happens to the global economy. No wonder, then, that investors from Hong Kong to London have become fixated on the looming “fiscal cliff” facing the U.S. government. If re-elected President Barack Obama can’t reach a new deal with Republican Party Congressmen in the House of Representatives on closing the country’s trillion-dollar budget deficit, a slate of deep spending cuts and tax hikes will automatically come into effect next year that will in all likelihood derail the slow-moving U.S. recovery from the 2008 financial crisis. That would without doubt do some serious damage to growth globally. Rating agency Fitch proclaimed that “the U.S. fiscal cliff represents the single biggest near-term threat to a global economic recovery.” A U.S. plunge off the fiscal cliff ...
ECB's Draghi phoned Napolitano over resignation reports: press
ROME - European Central Bank President Mario Draghi phoned Italian President Giorgio Napolitano after media reports that the 87-year-old head of state was planning to resign early to clear the way for new elections, newspapers reported on Sunday.
Found 1 month ago on channel Reuters
Exclusive: Draghi lectures euro zone leaders about labor costs
BRUSSELS - European Central Bank President Mario Draghi gave EU leaders a crash course in macroeconomics late on Thursday, emphasizing his concerns about low productivity and high labor costs hurting the euro zone's prospects, officials said.
Found more than 1 month ago on channel Reuters
ECB Gives Little Hope of More Action
The European Central Bank cut its forecasts for the euro-zone economy this year and next, and President Mario Draghi played down the possibility of taking further steps to revive it.
Outside the Box: A funny thing happened on the way to a stable euro
The main euro-zone players, namely German Chancellor Angela Merkel and European Central Bank President Mario Draghi, have a “cunning plan” for the currency union. Except you know what they say about the best laid plans, writes commentator Kiron Sarkar.