Although the eurozone is better equipped than it was in the past, it is still a highly imperfect monetary union. In fact, if Greece exits, new vulnerabilities will emerge, and there is no certainty other weak southern periphery economies will actually be protected. This may add to the many reasons for the two parties to reach an agreement this week, allowing Greece to remain in the eurozone. The alternative could be the beginning of the end of the euro.
DUBLIN -- The decisive nature of the No vote should persuade European leaders to set aside their hopes of forcing regime change and to focus their minds on the practical implications of a Grexit. They need to acknowledge something that is widely accepted: that Greece cannot pay back all of the money loaned by Europe. Pushing Greece towards a euro exit is probably the strategy that will ultimately minimize the return of money to the creditors.
Unlike many letters from Congress that are ignored by the executive branch, this one might be taken more seriously by the IMF and the U.S. Treasury department -- which is the IMF's most powerful overseer. One reason is that the IMF has been trying for five years to enact reforms in its governance structure that are very important to the Fund and Treasury -- reforms that can't be enacted unless they are approved by Congress.
Defaults are difficult. But even more so is austerity. The good news for Greece is that, as Argentina showed, there may be life after debt and default.
Americans, in their attempts to invigorate the dying art of birthing and breastfeeding, seem almost to police new mothers with each decision they make.
European leaders are finally beginning to reveal the true nature of the ongoing debt dispute, and the answer is not pleasant: it is about power and democracy much more than money and economics.
Given the EU's fundamental interconnectedness -- in economic, financial, geopolitical and social terms -- the disruptive impact of each shock would amplify the others, overwhelming the region's circuit breakers, leading to recession, reviving financial instability and creating pockets of social tension. This would increase already high unemployment, expose excessive financial risk-taking, embolden Russia and strengthen populist movements further, thereby impeding comprehensive policy responses.
ATHENS -- It seems extraordinary how averse we have become to democracy. How alien an honest leader, who is unwilling to sell the country out in exchange for continuing power, appears. Tsipras is what all leaders should actually be like. We have simply become so accustomed to seeing things through the warped prism of political expedience, that democracy as it should be appears twisted.
BUENOS AIRES -- Athens in 2015 will become like Buenos Aires in 2001. Greeks now face the prospect of prolonged capital controls, severe political unrest and eventually a confiscation of ordinary citizens' savings to finance a government's withdrawal from the world.
Economies are computers, and the capacity of an economy to generate income is a side effect of that economy's computational capacity. This helps explain international differences in income, as it implies that economies that embody vast computational capacities, such as the economies of South Korea, Taiwan or Silicon Valley, should be richer than those that struggle to compute, like the economies of many Latin American and Sub-Saharan countries.
HONG KONG -- If 18 years were not enough time for Beijing to get "one country, two systems" right, then whose problem is it now? Senior officials in Beijing, the "one country" capital, are left with a lot of problems to study and fix.
BEIJING -- "A person with Barack Obama's pre-presidential professional experience would not even be the manager of a small county in China's system."
God knows when you are doing something that you shouldn't be doing and whether you are playing according to god's rules.
ROME -- The Italian government is proposing a new form of "risk sharing" in the eurozone. A European Unemployment Insurance scheme is an innovative form of "risk sharing" that can be supported by both progressive liberals and pro-market conservatives throughout Europe.
ROME -- When Pope Francis travels to Paraguay in July, it is most possible he will recall the way women took charge of this country's future in 1870 after the war. He has mentioned this historical moment before to point out the great risks women are ready to take. Whether he will risk going any further remains to be seen.
California's state of mind, as much as its magnificent landscape, has always loomed large in the global imagination. And just when many were beginning to believe that the future of the Golden State had passed it by, California is breaking new ground again on many fronts.