As public debt in advanced countries reaches levels not seen since the end of World War II, there is considerable debate about the urgency of taming deficits with the aim of stabilizing and ultimately reducing debt as a percentage of gross domestic product. Our empirical research on the history of financial crises and the relationship between growth and public liabilities supports the view that ...

Park Chung-hee It ain’t necessarily so. That’s what New York University economics professor William Easterly essentially says about crediting “benevolent autocrats” like South Korea’s Park Chung-hee for high growth rates. In “Benevolent Autocrats,” a provocative working paper posted in May, Easterly 1) argues that economists should be skeptical of the “benevolent autocrat” theory; (2) questions...

NEW YORK ― During the four decades since the Watergate affair engulfed U.S. President Richard Nixon, politicians have repeatedly ignored the scandal’s main lesson: the cover-up is worse than the crime. Like Nixon, they have paid a higher price for concealing their misdeeds than they would have for the misdeeds alone. Now, for once, comes a scandal that breaks that rule: the United Kingdom’s phon...

There was more bad news about the global economy last week. It looks as if the major developed economies are facing worsening problems that will not go away. This does not augur well for the developing world, as it is still dependent on the richer economies. An economic slowdown in the United States was indicated by last week’s data of a rise in unemployment to 9.2 percent and only 18,000 new n...

LONDON ― When the history of the 21st century is written, people will rightly ask why it was that Europe was found wanting during its most intractable economic crisis. They will ask why Europe slept as an undercapitalized banking system floundered, unemployment remained unacceptably high, and the continent’s growth and competitiveness plummeted. Worse still, if a reconstruction plan does not co...