The legitimacy of governments and of economic policies

The outlook for Canada’s economy is becoming increasingly tentative, and that is putting key reforms— from erasing government deficits to heftier pension payments — out of reach for now. Finance ministers across the country share the same roadblocks to growth as their federal counterparts. Attempts to clear those away have been set back by economic problems beyond their control.

Submitted by Lance Roberts of Street Talk Live,

Jasper Blom, Geoffrey R D Underhill, 19 March 2013David Cameron’s promise of a referendum on British participation in the EU has re-ignited the debate about the EU’s democratic legitimacy, just as the struggle to overcome the crisis continues. This column argues that in order to both successfully resolve the crisis and maintain states’ ability to sustain liberal finance, a substantial shift in policy is required. Enhancing the democratic legitimacy of crisis resolution measures and wider financial reforms is essential.

There is one common theme between the Bush administration, Hugo Chavez and the new UK Government. They all seem to have constructed the implementation and not the goals of their economic policies on political dogmas.

European leaders are gathered in Brussels for another summit, facing new concerns that their austerity policies are adding to the continent's unemployment problem and weakening the chances for an economic recovery. Thousands of workers gathered outside the summit meeting place Thursday to protest the austerity policies that European governments have embarked on to cut their deficits and long-term debts. The European Union leaders were faced with a new report that the number of people ...

Alberto Alesina, 30 November 2012Should debt-ridden and economically struggling Western governments be doing everything possible to reduce their deficits? Should we cut spending or hike taxes to reduce our debt-to-GDP ratios? This column argues that the answer is obvious: the cheapest, most effective and confidence-inspiring route is to cut spending.

Last night's election in Italy is resulting in remarkable market gyrations all around the world.