Fiscal and Structural Reform

Do deficits matter? Japan shows they do.

By Hung Tran

Japan is often a misleading example for those who downplay the problems of debt. Tokyo has run budget deficits throughout the past three decades, creating one of the world’s highest public debt to GDP ratios, without any adverse effect on inflation and interest rates. But this comes at the cost of high savings by the household and corporate sectors, which has hampered Japanese growth.

South Asia midyear pause: Taking stock of 2020

By South Asia Center

The specific events of the year’s first six months might have taken us by surprise but the political-economic dynamics that have shaped South Asia’s response to these new challenges did not. Across the region democracy and freedom of expression are challenged, and protectionist impulses are indulged in flailing response to calamitous economic strife. And the United States continues its slide into strategic irrelevance, exercising little leadership or interest in building stronger ties to this vital region.

The Sudan Partnership Conference: A turning point for Sudan?

The world came to Berlin yesterday (at least virtually) as part of a United Nations, European Union, and German government-sponsored “Partners Forum for Sudan.” By all accounts, it was a triumph, and potentially a turning point, for the fragile transitional civilian government of Prime Minister Abdalla Hamdok, pulling in an announced $1.8 billion in assistance to Sudan.

Expert panel briefs Congressional staffers on Sudan

By Africa Center

On Tuesday, May 26, the Africa Center hosted a closed Sudan briefing for Congressional staffers who are currently at work on several important pieces of Sudan-related legislation. The private briefing featured remarks from Sudanese Minister of Finance H.E. Dr. Ibrahim Elbadawi and Sudanese Minister of Justice H.E. Nasredeen Abdulbari, followed by an expert panel of DC-based Sudan experts.

Critical ruling for European Central Bank to turn spotlight back to policymakers

By Bart Oosterveld

So far, the ECB has committed to asset purchases roughly in accordance with each member state’s contribution to the European economy. This has led to market speculation that suggests the German court will add that as a restriction on the Bundesbank’s participation, though there is no precedent for such a restriction in prior rulings.

Europe needs a quick economic coronavirus response: The ESM can provide it

By Bart Oosterveld

A rapid and flexible deployment of the €410 billion lending capacity of the European Stability Mechanism (ESM) is urgently needed to support the policy initiatives launched to combat the coronavirus crisis throughout Europe. The sooner the Eurogroup of finance ministers can return to something akin to this sensible compromise position suggested by its President Mario Centeno last week, the better.

Europe’s economic emergency is also a geopolitical one

By Benjamin Haddad and Josh Lipsky

European leaders are deciding the future of European power on the world stage. If Europeans can’t ensure solidarity with each other after so much pain and sacrifice, it will not only be a devastating loss for Europe. It will also be a blow to a world looking for the political shape of a post-coronavirus world.