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The (Postponed) End of the Dollar Era

Harvard Business Review

current account deficit, which measures the gap between what the country takes in from export income, investment income, and cash transfers and what it pays out, peaked at nearly 6% of GDP in 2006 and was down to 3.1% of GDP in 2011. But it will be the end of the remarkably free-wheeling era in global finance and U.S.

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Spain Is Now Making Ireland's Mistakes

Harvard Business Review

Just like Ireland, Spain had a credit boom financed mostly with external debt, which meant that the balance sheets of their banks are now stuffed with bad debts as asset values collapse. The Spanish Prime Minister has become preoccupied with creating market confidence, as was the Irish Prime Minister in the run up to the EU/IMF bailout.

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The End of Economists' Imperialism

Harvard Business Review

"By almost any market test, economics is the premier social science," Stanford University economist Edward Lazear wrote just over a decade ago. Bush's Council of Economic Advisers in 2006. Meaning that you can never get truly scientific answers out of GDP or unemployment numbers. And then, well, things didn't go so well.

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How Israeli Startups Can Scale

Harvard Business Review

Only a handful of so-called unicorns — companies that have achieved a valuation of over $1 billion in the last 10 years — come from Israel, and only one Israeli firm, Teva, ranks in the world’s 500 largest companies by market capitalization. That’s disappointing for a country with so much potential. We think so.

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What Alan Greenspan Has Learned Since 2008

Harvard Business Review

Not long after Alan Greenspan stepped down as Federal Reserve chairman in 2006, global financial markets began to unravel. Greenspan was never a hardline believer in the rationality of financial markets. It’s true of GDP. It’s true of all commodity markets. I mean, I was really put down.