Cucumber Crisis - A Setback for the European Integration Project

Spain and Germany, already at loggerheads with each other over the Euro-zone debt crisis, are facing a new challenge to bilateral relations - the Cucumber Crisis.
http://www.bbc.co.uk/news/world-europe-13605910

Update: German beansprouts may actually be the culprits
http://www.guardian.co.uk/world/2011/jun/05/ecoli-beansprouts-identified-likely-source

Global Economic Developments

Australia – The Long Economic Boom Continues

http://www.economist.com/node/18719530

India in Africa – Chasing China

http://www.economist.com/node/18745335

Euro-zone Crisis Updates

At some point in time, there has to be a restructuring of Greek (and possibly Irish) debt. Are the consequences of a haircut to creditors likely to be catastrophic?

Probably not; in fact, a debt restructuring may be the least-worst option to resolving the crisis.

Here are a few interesting articles related to the Sovereign Debt Crisis:

Impact on Germany if Greek debt is restructured:

http://www.spiegel.de/international/europe/0,1518,druck-765318,00.html

Options available to Greece

http://www.economist.com/node/18744305

Profile of Economist Tyler Cowen

http://www.businessweek.com/print/magazine/content/11_23/b4231066695798.htm

The Truth About the Strong Dollar Policy

Christina Romer notes the obvious – strong dollar policy is just empty rhetoric.

http://www.nytimes.com/2011/05/22/business/economy/22view.html

South Asia - Interesting Links

http://www.economist.com/node/18712274

http://yaleglobal.yale.edu/content/post-bin-laden-pakistans-hour-choice

http://yaleglobal.yale.edu/content/pakistans-not-so-sleight-hand

China – A Major Destabilizing Force in South Asia

http://www.nytimes.com/2011/05/20/world/asia/20pakistan.html

IMF Chief Post - More of the Same?

The bizzare logic behind Europe’s push to continue the antiquated practice of always choosing a European to head the IMF:

Some European leaders have said in recent days that the next leader should be from Europe because they best understand the euro-zone debt crisis.

"That's interesting logic," said Arvind Virmani, an IMF board member from India. "That means whenever there's an Asian crisis, there should be an Asian managing director? Whenever there's an African crisis, there should be an African managing director?"

                                                                          - From the WSJ

Simon Johnson, the former IMF Chief Economist, has an interesting piece on possible successors:

http://www.bloomberg.com/news/2011-05-17/emerging-markets-might-name-strauss-kahn-heir-simon-johnson.html

Comment:

If the US wants the world to see that its rhetoric regarding democracy and openness is not just empty talk, then it should not cut a deal with the Europeans.

The Lure of Cheap Credit

In recent days, MIT and Norfolk Southern have issued 100 year bonds (with very reasonable spreads over 30 year US Treasury Bonds). There appears to be a rush to take advantage of this once in a lifetime opportunity to not just borrow but also to lock in extraordinarily low rates.
http://www.bloomberg.com/news/print/2011-05-18/norfolk-southern-follows-mit-with-400-million-offering-of-100-year-bonds.html

Religion, Education and Income Levels

David Leonhardt of the NYTIMES has a rather interesting article on religious affiliation, educational attainments and income levels in the US:
http://economix.blogs.nytimes.com/2011/05/13/faith-education-and-income/?pagemode=print
http://www.nytimes.com/2011/05/15/magazine/is-your-religion-your-financial-destiny.html


A neat graphic:
http://www.nytimes.com/imagepages/2011/05/15/magazine/15-Leonhardt.html

Declining Quality of US Undergraduate Education

Professor Arum and Professor Roksa make some excellent points in their NYTIMES op-ed:

"While some colleges are starved for resources, for many others it’s not for lack of money. Even at those colleges where for the past several decades tuition has far outpaced the rate of inflation, students are taught by fewer full-time tenured faculty members while being looked after by a greatly expanded number of counselors who serve an array of social and personal needs. At the same time, many schools are investing in deluxe dormitory rooms, elaborate student centers and expensive gyms. Simply put: academic investments are a lower priority."


"Too many institutions, for instance, rely primarily on student course evaluations to assess teaching. This creates perverse incentives for professors to demand little and give out good grades. (Indeed, the 36 percent of students in our study who reported spending five or fewer hours per week studying alone still had an average G.P.A. of 3.16.) On those commendable occasions when professors and academic departments do maintain rigor, they risk declines in student enrollments. And since resources are typically distributed based on enrollments, rigorous classes are likely to be canceled and rigorous programs shrunk."

International Affairs

A brilliant analysis of America's policies in S. Asia:
http://www.newyorker.com/reporting/2011/05/16/110516fa_fact_wright

Kissinger on China:
http://online.wsj.com/article/SB10001424052748703864204576315223305697158.html

Iceland - Post Crisis Recovery Update

An interesting look at Iceland's recovery:
http://www.nytimes.com/2011/05/15/magazine/icelands-big-economic-thaw.html