How Dangerous Is U.S. Government Debt?

The dollar’s status as the world’s reserve currency has become a facet of U.S. power, allowing the United States to borrow effortlessly and sustain an assertive foreign policy. But the capital inflows associated with the dollar’s reserve-currency status have created a vulnerability, too, opening the door to a foreign sell-off of U.S. securities that could drive up U.S. interest rates. In this Center for Geoeconomic Studies Capital Flows Quarterly, Francis E. Warnock argues that a sell-off came close to happening in 2009. How the United States uses this reprieve will affect the nation’s ability to borrow for years to come, with broad implications for the sustainability of an active U.S. foreign policy. Read the complete paper here.

Sen on Smith

Harvard Professor and Nobel Laureate Amartya Sen speaks on "The Uses and Abuses of Adam Smith" at Duke University as part of a celebration weekend of the 40th anniversary of the History of Political Economy Journal. Watch the complete lecture at Duke University on Youtube here.

Opel als kantelmoment

Jan Denys is het niet eens met het plan van de federale minister van Werk om de brugpensioenregeling nog te versoepelen: 'Milquet doet net het omgekeerde van wat ze zou moeten doen.' Jan Denys is arbeidsmarktdeskundige bij Randstad. Lees zijn volledige opiniestuk in De Morgen hier.

Fiscal Fibs and Follies

Across the globe, the debate over fiscal consolidation has the distinct sound of two sides talking past one another. Whereas severely distressed southern European states may well benefit from cutting their budget deficits, those arguing for fiscal consolidation in the major G-20 economies are playing a dangerous game. Read Barry Eichengreen's column on Project Syndicate here.

On the consequences of an EU patent for inventors and patent offices

For more than 40 years, many governments and professional associations have acted, voted, or lobbied against the implementation of the EU patent. This column argues that the EU patent would drastically reduce patenting costs for applicants and generate more income for both the European Patent Office as well as most national offices, all the while saving €120 million in legal fees. Read the column of Jérôme Danguy and Bruno van Pottelsberghe de la Potterie on VOX here.

A cure that could do more harm than good

Pursuit of regulatory perfection will transfer risks from banks to customer, writes Masayuki Oku, chairman of the Japanese Bankers Association. Read the article in FT here.

Federale plannen schaden Vlaamse wetenschappers

Lees het opiniestuk van de Vlaamse rectoren in De Standaard hier.