By Leonid Bershidsky – Despite all the talk of globalization and its harmful effects, money doesn’t wander the world looking for opportunities. Mainly, it stays at home. Even some of the recorded international flows are in fact domestic investment made through offshore havens for tax purposes.
Now, the world’s 140 or so currencies sometimes make cross-border flows dangerous.
If the world used the same currency, the problems inadvertently caused by the euro wouldn’t be replicated. German banks were too willing to lend to projects in the European periphery because they felt they could trust members of the same exclusive currency club and because the euro made investing in Europe almost frictionless, an advantage the rest of the world didn’t have.
The one world, one currency club would make friction disappear. more> http://tinyurl.com/ovfs2tx
Posted in Banking, Economic development, Economy, Education, Leadership, Regulations
Tagged Banking reform, Capital, Currency, Financial crisis, Regulations, Super regions
Princeton Plasma Physics Laboratory – Researchers at the U.S. Department of Energy’s (DOE) Princeton Plasma Physics Laboratory (PPPL) have developed a detailed model of the source of a puzzling limitation on fusion reactions.
At issue is a problem known as the “density limit” that keeps donut-shaped fusion facilities called tokamaks from operating at peak efficiency. This limit occurs when the superhot, charged plasma gas that fuels fusion reactions reaches a certain density and spirals apart in a flash of light, shutting down the reaction. Overcoming the limit could facilitate the development of fusion as a safe, clean and abundant source of energy for generating electricity. more> http://tinyurl.com/ohvu2wp
Posted in Economic development, Economy, Education, Energy, Nature, Science, Technology
Tagged Climate change, Industrial economy, Nuclear fusion, Physics, Technology, Test & measurement, Tokamak, United States
By Paul Krugman – Why are there so many economic disasters in Europe?
Actually, what’s striking at this point is how much the origin stories of European crises differ. Yes, the Greek government borrowed too much.
But the Spanish government didn’t — Spain’s story is all about private lending and a housing bubble.
And Finland’s story doesn’t involve debt at all. It is, instead, about weak demand for forest products, still a major national export, and the stumbles of Finnish manufacturing, in particular of its erstwhile national champion Nokia.
What all of these economies have in common, however, is that by joining the eurozone they put themselves into an economic straitjacket. more> http://tinyurl.com/ov3lgu4
- Hopeful Start to Greek Debt Negotiations Quickly Soured, Landon Thomas Jr., nytimes.com
- The ‘Demerging’ Greek Economy, Marc Champion, Bloomberg
- Greece’s Sorry Reckoning, Nikos Konstandaras, nytimes.com
- Europe Wants to Punish Greece With Exit, Clive Crook, Bloomberg
- How Iceland Emerged From Its Deep Freeze, Jenny Anderson, nytimes.com
Posted in Banking, Business, Economic development, Education, History, Leadership, Regulations
Tagged Banking reform, Capital, Currency, EU, Financial crisis, Government, Leadership, Monetary policy, Super regions