The Case for U.S. Leadership
By Jacob J. Lew When U.S. President Barack Obama joined other global leaders at the G-20 summit in Turkey in November 2015, the United States was in the final stages of a multiyear effort to secure the approval of a set of important reforms to the International Monetary Fund.
As we have been covering this week, the release of the Panama Papers has created a panic among world governments, by exposing some of their darkest secrets. In the leak, 11.5 million documents were stolen from Mossack Fonseca and were leaked to Suddeutsche Zeitung, who then turned to the International Consortium of Investigative Journalists to examine the documents. In the time since, media organizations have been scrambling to sift through a large number of documents, in hopes of finding stories that they can spin to fit their narrative.
The hosting of Mugabe reveals the duelling pressures that face Japan as it looks to engage more states in Africa, writes Miller [EPA]. Last week, Japanese Prime Minister Shinzo Abe hosted Zimbabwean President Robert Mugabe for an official five-day visit in Tokyo. Abe has now met Mugabe three times, despite Harare's isolation from the West - and, more acutely to Japan - especially the United States.
Project Syndicate, Adair Turner SHANGHAI – The Chinese economy faces an enormously challenging transition. To achieve its goal of joining the world’s high-income countries, the government has rightly urged a “decisive role for the market.” But, while market competition works well in many sectors, banking is different. Indeed, over the last seven years, China’s reliance on bank-based capital allocation has led to the same mistakes that caused the 2008 financial crisis in the advanced economies.
C J Polychroniou Panama has always been one of the best tax havens in the world - both during and after the reign of General Manuel Noriega - and Mossack Fonseca (run by a Swiss tax expert named Jurgen Mossack and his Panamanian partner, Ramon Fonseca) is one of the dominant players in the parallel world of tax havens.
Project Syndicate, Carmen Reinhart CAMBRIDGE – As Chinese policymakers attempt to address what ails their country’s economy, they are pursuing two goals that will almost certainly turn out to be incompatible. Very seldom have central banks been able to maintain a fixed exchange rate over an extended period of time while providing liquidity to troubled banks and an ailing economy.