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Selfishness Underlies the Shutdown, At Home and Abroad
Americans aren’t the only ones talking about government shutdown this week. Former Italian Prime Minister Silvio Berlusconi almost collapsed Italy’s government on Wednesday by threatening…
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Europe’s Continued Stagnation Is Not Surprising, Given Lack of Reform
The Guardian reports that Italy’s record-long economic slump has continued for another quarter. This isn’t much of a surprise given Prime Minister Enrico Letta’s…
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The HuffPo’s Sloppy Austerity Analysis
Mark Gongloff, a writer for the Huffington Post, claims to show “The Complete Failure of Austerity, In 1 Chart.” Wow! Either he has found…
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Are Markets Rational When It Comes to Economic Fundamentals?
We hear frequently that financial markets thrive on irrational fears. That they are wrong to be wary of unreformed economies and that central banks are…
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Austerity Means Cuts, Not More Spending
Despite its frequent use through the media and in political debate, few journalists and politicians actually use the term “austerity” correctly. But Cypriot Finance Minister…
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New Study Dispels Myths of European Austerity
Cries throughout the media of “savage austerity” notwithstanding, only a handful of European countries have actually implemented austerity in the true sense of the term:…
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France Needs a “Power-Up” When It Comes to Labor Reform
In its annual country report released on Monday, the IMF turned up the heat on France for labor reform. The Washington-based lender called for…
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European Skepticism of Minimum Wage Falls on Deaf Ears in America
Spain’s central bank—operating within the European country with the highest rate of unemployment—just recommended to the government in Madrid a suspension of the minimum…
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Does Austerity Really “Kill”?
Does austerity kill? In a recent New York Times op-ed, David Stuckler and Sanjay Basu claim that fiscal austerity leads to a worsening of health…
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The Doctor Is In, America: Get With the Estonian Program
Don’t let the optimism surrounding last month’s job numbers fool you. The unemployment rate’s decline from 7.6 percent in March to 7.5 percent in…
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Bitcoin: An Escape From Currency Debasement?
Although gold traditionally has been the alternative asset for those wary of fiat currency debasement, there is an emerging newcomer: virtual currency. Bitcoin, created in…
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Cyprus Is A Lesson For U.S. Policy Makers: Too Big To Fail Is Not Inevitable
American financial regulators could take a lesson from their European counterparts. The recent EU bail-in/bailout of Cyprus, despite its dangers, shows that reducing moral hazard…
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A Quick Investigation Of Central Bank Redistribution
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Austerity Is Worth The Cost
In a January National Review article, I explained how Baltic countries such as Estonia that had undertaken short-lived but severe cuts to government spending…
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Europe’s Latest Wake-Up Call: Italian Elections
Europe, which has been enjoying a recent respite from financial chaos, is about to get a rude awakening: Italian elections. Voters will go to the…
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Baltic Success Reveals The Folly Of Obama’s Doublespeak
This week’s State of the Union address was full of plans for government action and spending to combat U.S. economic malaise. At the same…
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Magician Economists Like Bernanke Can’t Pull Prosperity Out Of A Hat
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More Evidence For Austerity’s Success
Third-quarter unemployment data from Eurostat, Europe’s statistical agency, provides still more proof actual cuts in teh size of government — what I call “real austerity”…
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Europe’s Green Building Boondoggle: Benefits By 2064
A report released yesterday by the European Court of Auditors exposed the European Union’s €5 billion boondoggle into increasing “energy efficiency” in public buildings.
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Europe 2013: A Primer
As the New Year approaches, many challenges loom for Europe. Here’s a quick list of the toughest hurdles for 2013: 1. Implementing the Single…
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France’s Anti-Business Orthodoxy
In France, running a productive business is not important. Simply creating jobs -- not wealth or innovation -- is the sole purpose of enterprise. At…
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Stuck in Time: Italy’s Politics
Things have a way of repeating themselves. This is especially true in Italy, where politics have been stuck in a time loop for the…
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Obama’s Dangerous Italian Labor Rhetoric
[caption id="" align="alignleft" width="260"] President Obama spoke in Detroit on Monday[/caption] President Obama condemned yesterday Michigan’s forthcoming transition to a right-to-work state. He claimed,…
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American Capitalism Is More Compassionate Than European Socialism
America has not yet become Europe. And that’s a good thing. In Investor’s Business Daily, I empirically show that the American model of greater…
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The Bank Of England Breaks With Tradition, Only To Continue It
U.K. Chancellor of the Exchequer George Osborne’s selection for the new governor of the Bank of England (BOE) is a strong break with tradition.
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The Estonian Solution To America’s Fiscal Cliff: Cut Spending
Real austerity brings real growth. That’s the story of Estonia, which broke the common European mold of tax increase-based economic retrenchment by taking an axe…
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Italy Shoots The Messenger… And Its Legal System In The Foot
Italy’s legal system, already deeply unfriendly to business, has sunk to a new low this week. In the town of Trani, prosecutors requested to charge five…
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Austerity For Europeans, But Not For Europe
Some economists and political leaders demonize European austerity as “savage.” They say it will only deepen and prolong recession. They are right, but for the…
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“Status-Quo-ism” Of Italian Politicians Is Economically Perilous
Italian media report all sides of Italy’s political spectrum are calling for early elections. Unfortunately, that means a return of the unreformed Italian political class…
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On Halloween, Euro Politics Fit Right In
All the usual characters are present this Halloween night across the Atlantic. But European leaders doing the trick-or-treating aren’t getting the sweet sugar fix they…
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Italy’s Greatest Economic Threat: Italian Politicians
Italian ex-Prime Minister Silvio Berlusconi told news sources last week that his party -- Popolo della Libertà -- would soon decide whether or not to…
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Southern European Bailouts Must Focus On Reform
As European leaders meet in Brussels this week for a summit on the future of European integration, bailouts for the south will be heavy on…
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Jobless Youth: Southern Europe’s Ticking Time Bomb
Forget austerity and bailouts. Southern Europe has an even bigger problem: a glut of unemployed young people. If this trend continues, workforces will regress in…
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Printing Money Is Not A Main Street Policy
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The Real Spanish Bank Bailout Cost: 113 Billion Euro
Don’t be fooled by the optimism overflowing from the stress test of Spain’s banking system released on Friday. American Consultancy Oliver Wyman, which performed the…
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State Capitalism Or Corporatism? Italy’s Carmaker Conundrum
Italy’s iconic car manufacturer, Fiat, announced Saturday its plans to keep its production base in Italy after months of threatening to leave for more…
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The European Central Bank’s Losing Game Of Chicken
European Central Bank (ECB) President Mario Draghi is losing a game of chicken with the Euro Area’s distressed peripheral countries. Earlier this month, Draghi announced…
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Europe’s Central Bankers Are Running Out Of Road
Fed Chairman Ben Bernanke said yesterday in his testimony to the House Financial Services Committee that Europe is a long way off from having a…
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Italy Kicks the Can on Labor Reform
Italy continues to put off addressing its most fundamental economic problem: impossibly rigid labor regulation. In this letter to The Wall Street Journal, I explain why…
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Bailouts Won’t Save Europe, Only Reform Will
As European leaders panic over bailouts for Southern Europe, they miss an important reality. Comprehensive structural reform is the only long-term solution for recovery. Perversely, bailouts…
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Central Bankers are Playing a Losing Game
The supposed economic “recovery” is faltering. The sugar high of freshly printed money from the world’s central banks is beginning to wear off. In…
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Super Mario Hasn’t Saved Italy’s Entrepreneurs
Italian Prime Minister Mario Monti is full of optimism these days. He has claimed to achieve “historic” reform in Italy’s labor market and to beat…
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School Choice Can Temper Climate Curriculum Dogma
John Stuart Mill once wrote, “There is the greatest difference between presuming an opinion to be true, because, with every opportunity for contesting it, it…
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More Phony Comparisons by American Europhiles
American Europhiles love to make comparisons between the entire United States and the rich Nordic countries in order to advocate America's "Europeanization." But comparing these…
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Fed’s Plan to De-Mystify Interest Rate Intentions Won’t Induce Recovery
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Boom and Bust Madness: An Empirical Look at the Fed’s Dollar Binge
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Bernanke’s Dollar Swap Euro “Stimulus”
Here’s a letter I sent to The Wall Street Journal: In “Central Banks Take Coordinated Action” (Nov. 30), Mr. Sparshott and Mr. Hilsenrath rightly…
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Ben Bernanke: Most Powerful Man in America?
Don’t let his short stature and friendly grandpa beard fool you. Federal Reserve Chairman Ben Bernanke has the power to control the money in your…
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What the Super Committee Could Have Learned From Italy
Entitlement reform. Those words alone make politicians’ ears bleed. Or in the case of Italy, it makes their fists literally fly at one another. I…
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