World economics are reeling. We put together a global roundtable to look at why, and what should be done.
No safe haven. That’s been the feeling lately as markets and economies around the world have tumbled and bounced and reeled.
No safe haven in the downgraded U.S., where politicians fight as growth stalls. No safe haven in Europe, where bigger and bigger countries teeter on default. No safe haven even in China, where inflation is speaking up and exporters depend, after all, on US and European markets.
Wall Street’s going like a yo-yo. Millions have no job.
This hour On Point: we tap a global roundtable –- US, Europe, China -– to ask where this goes.
Ken Rogoff, professor of public policy and economics at Harvard University.
Geoffrey Wood, professor of economics at the Cass Business School at London’s City University.
Tao Wang, head of the Chinese Economic Research for UBS in Beijing.
From Tom's Reading List
CNN: "All three major U.S. stock indexes sank between 5% and 7%, pushing the Dow below 11,000 for the first time since last November. U.S. stocks have fallen 15% during the past two weeks."
Financial Times: "Four years into the financial crisis, it is becoming increasingly clear that the biggest deficit is not in credit, but credibility. Markets can adjust to a downgrade of global growth, but they cannot cope with a spiralling loss of confidence in leadership and a growing sense that policymakers are disconnected from reality. What needs to be done to move away from the precipice?"
Bloomberg: "China’s inflation accelerated to the fastest pace in three years in July, limiting the scope for monetary easing to support growth as plunging stock markets signal the global recovery is weakening."
This program aired on August 10, 2011.