Peterson Institute Update

Peterson Perspectives Interview: Challenges for the American Workforce

Howard Rosen explains why traditional approaches to helping the unemployed need to be overhauled in light of recent trends in globalization, technology, and business management.

US and Canadian Climate Legislation by State and Province

Both the Canadian and the US federal government are currently pushing climate-change laws through their respective legislatures, but legislation in both countries is neither comprehensive nor certain to pass. In the absence of adequate federal programs, states and provinces are stepping in with their own initiatives. Not surprisingly, federal, state, and provincial governments hold different views about the specifics of greenhouse gas (GHG) control measures, even when they agree on the broad objective. Many jurisdictions, such as California and British Columbia, prefer stricter targets than those currently laid out in federal regulation. Moreover, while federal legislation has so far favored cap-and-trade strategies focused on overall emissions, provincial and state legislation tends to supplement these market strategies with industry performance standards and programs targeted to local circumstances. For these reasons, provincial and state governments have quickly become distinct players in the climate-policy debate.

Accompanying table provides summary of climate legislation in Canada, the United States, and Mexico by state and province.

The Economic Outlook and Options for Stimulus

Today, it is abundantly clear that not only the United States but much of the world is sliding rapidly into recession. While the Treasury Department, Federal Reserve, and Congress have taken multiple steps to ensure the stability of the financial system, the next question is how to protect the real economy from a severe, prolonged recession and construct a basis for long-term growth and prosperity in the future.

Testimony by Simon Johnson.

Event: The Euro: A Stable Currency Without a State

Otmar Issing, former chief economist of the European Central Bank, spoke about the euro at the Institute's sixth Whitman Lecture on November 18, 2008.

G-20 Summit: Did It Make Things Worse?

The G-20 summit on Saturday has received favorable press reviews. Countercyclical fiscal policy was mentioned in favorable terms, more resources for the International Monetary Fund (IMF) were discussed, and an extensive work plan for regulators was specified in some detail.

Op-ed by Simon Johnson.

Peterson Perspectives Interview: G-20 Summit: Neither a Disappointment nor a Triumph

Morris Goldstein says the most positive contribution of the G-20 summit meeting is that it sets in motion a process of reform, with details to be filled in later.

Event: Korean Perspective on the G-20 Summit

Dr. Il SaKong, special economic advisor to South Korean President Lee Myung-bak, spoke at an Institute meeting on November 17, 2008. Dr. SaKong, who accompanied President Lee to the G-20 summit held in Washington on November 14-15, provided an insider's view on the outcome of the summit from the emerging market perspective. He also discussed future plans of the G-20, the impact of the current financial crisis on Korea, and the results of its policy responses to date. Audio of SaKong's speech is available online.

Peterson Perspectives Interview: Is a Trade Deal in the Offing in Congress?

I. M. Destler says it is unlikely that there will be a quick congressional approval of the Colombia free trade agreement as part of an economic stimulus package.

Peterson Institute Special Update on the G-20 Summit

View our latest newsletter for a handy digest to the most recent commentary by PIIE senior fellows on the upcoming G-20 meeting.

Bergsten on the NewsHour with Jim Lehrer: China's Stimulus Package

Director C. Fred Bergsten appeared on the NewsHour with Jim Lehrer to discuss the likely impact of China's stimulus package of $586 billion. His interview with Margaret Warner is available online.

India and Bretton Woods II

The circumstances are odd: a lame duck administration, reflexively reticent about multilateralism, convening the mother-of-all multilateral initiatives, with the aim of reframing the rules of international capitalism. The original motives were a tad cynical: European leaders seeking to grandstand globally to boost their domestic political standing. The participants' predispositions are varied: from the regulatory zeal of France to the likely minimalism of the United States to Chinese—well, who really knows, what are Chinese predispositions?

Op-ed by Arvind Subramanian.

Imbalances and Undervalued Exchange Rates: Rehabilitating Keynes

Getting countries with persistent current account surpluses to adjust obsessed Keynes because he was acutely aware of the limited leverage that could be exerted against such countries. Sixty years later, that problem continues to haunt the international financial system. The ongoing global crisis originated predominantly in poor national policies and regulation. But large current account surpluses, stemming in part from undervalued exchange rates, and the resulting liquidity surfeit was a facilitating factor.

Op-ed by Arvind Subramanian.

Bergsten on China's Economic Stimulus Package and The World Economy

C. Fred Bergsten discussed on the Diane Rehm show with Eswar Prasad (Brookings Institution) and Yashen Huang (MIT) China's economic stimulus plan, whether it can stave off a recession at home, and how it might affect the global economy. Bergsten is coauthor of the Institute's recent book China's Rise: Challenges and Opportunities.

Hardball at Bretton Woods II

The rising powers must hold Western feet to the fire. Their motives may be in part a mixture of the expedient (Europe) and the desperate (the lame duck US administration). But there is no denying that the existing powers—Europe and the United States—are the instigators of the Bretton Woods II process that aims to rewrite the rules of the international economic system. How should the new powers, the emerging-market countries, respond?

Op-ed by Arvind Subramanian.