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Greece Needs to Be Honest About the Numbers

Harvard Business Review

Given his former position, you would imagine that Georgiou’s crime would involve falsifying national economic data in order to cover up tax shenanigans or to fool the markets into thinking that the Greek economy was healthier than it was. You would be wrong. Calculating this debt in “present” (i.e.,

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Financial Fears, Flows, and Globalization

Harvard Business Review

As readers of this blog already know, markets are far less integrated internationally than popular views of globalization presume. Their conclusions are corroborated not just by empirical experience but by experimental research on asset markets by Nobel Laureate Vernon Smith , among others. in 2009, before rising to 4.2%

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What Has the Eurozone Learned from the Financial Crisis?

Harvard Business Review

Back in January 2009 European officials assumed that the crisis was purely a U.S. This assumption could not have been farther from the truth; a recession started in Europe in the first quarter of 2009, just a couple of months after it hit the U.S. But GDP fell so much that the actual effect was to push up the ratio of debt to GDP.

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There Will Be Oil, But At What Price?

Harvard Business Review

We counter that managers who would see their businesses survive the next few decades of extreme economic volatility will need to develop some literacy about oil and its complex relationships with the economy. We have ample historical evidence that when petroleum expenditures reach 5% of GDP, recession typically follows.

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Fixing the World's Infrastructure Problems

Harvard Business Review

In Jakarta, from 2005-2009, the number of cars rose by 22% annually, while the distance of usable roads actually declined (PDF). of GDP (PDF) is necessary to raise infrastructure in the region to the standard of developed East Asian countries. an estimated $100 billion per year. There are three routes to getting there: 1.

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Why Multinationals Are Doubling Down on Russia

Harvard Business Review

And while two years of shrinking GDP growth , sanctions , and a volatile ruble have led some companies like GM to leave the market, there has not been a large-scale exodus of MNCs from Russia. For multinational firms, Russia’s attractiveness lies primarily in the size and sophistication of its market.

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Whose Capitalism is it Anyway?

Harvard Business Review

On the national level there's sense that if we're not producing more GDP, we're losing a competition of some kind," says Chris. There's this complaint: 'I'd love to think and manage for the long term, but Wall Street won't let me.' Meanwhile, from 2004 to 2009, emerging economies accounted for almost all of the world's GDP growth."

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