Inflation in the euro area is too low, and the European Central Bank (ECB) is at risk of missing its price stability mandate. With the market forecasting average inflation in the euro area over the next five years in the 1.25 to 1.5 percent range, the ECB must prepare to act forcefully to push...

Economists have long decried the efforts of large, advanced economies to manipulate their currencies to boost net exports at their trading partners' expense. But the International Monetary Fund appears to have ignored the beggar-thy-neighbor exchange rate policies of countries with developed,...

Currency manipulation—governments of foreign countries intervening to suppress the value of their currencies to lower the prices of their exports and increase the prices of their imports—has vexed the United States for many years. Because most of the intervention takes place in US dollars,...

The renminbi (RMB) is not yet an international currency that could challenge the position of the dollar or the euro, but it is heading in that direction. Chinese officials support the limited goal of increasing usage of the RMB in international transactions, but they do not publicly advocate...

Ukraine has experienced a year of unprecedented political, economic, and military turmoil. The combination of Russian military aggression in the east and a legacy of destructive policies leading to pervasive corruption has plunged the country into an existential crisis. The West, meanwhile, has...

The North American Free Trade Agreement (NAFTA) between the United States, Mexico, and Canada, which took effect 20 years ago, continues to face divided public opinion. Opponents of free trade agreements (FTAs) cite NAFTA as a job-killing precedent, while proponents argue that the economic gains...

Despite a lack of consensus among Koreans, Korean officials recognize that—sooner or later—Korea will need to be part of the Trans-Pacific Partnership (TPP). Jeffrey J. Schott and Cathleen Cimino conclude that Korea should seek to join the TPP as soon as possible if it can manage its...

The global economic crisis in 2008 produced pledges from countries around the world to avoid new barriers to trade and investment. These commitments were largely honored when it came to tariffs and quotas, but not when it came to nontraditional forms of protection, including behind-the-border,...

Horizontal drilling and fracking are transforming global energy production, consumption, and trade leading to a surge of domestic production in the United States. Free exports of liquefied natural gas, crude oil, and other energy products are an essential complement of US international economic...

Most forecasts for emerging and developing economies reflect excessive optimism that is both statistically significant and economically relevant, according to a study of forecasts for horizons of up to 20 years in more than 100 countries. This Policy Brief argues that for rapidly growing...