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Wise Economic Decision Making

Coaching Tip

percentage points from GDP, based on the average of 2010's first three quarters. Some economists have been assailed for having financial ties to the big banks that did so much to precipitate the financial crisis. Source: Bloomberg BusinessWeek, January 17, 2011. In 2005, housing accounted for 6.1

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Three Reasons the Euro Zone Deal Won't Work

Harvard Business Review

The idea behind the latest maneuver is that recapitalizing European banks will reduce the correlation between the creditworthiness of a state's banking system and the creditworthiness of a State itself. Many countries have taken large equity stakes in their banks. And market participants were initially thrilled.

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What Has the Eurozone Learned from the Financial Crisis?

Harvard Business Review

But the real tragedy happened later: a timid recovery during 2010-11 was followed by a second recession starting in the third quarter of 2011, from which Europe did not start recovering until 2015. The answer to those questions is threefold: Central Bank choices. The answer to those questions is threefold: Central Bank choices.

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Fighting Inflation, Ruining Economies

Harvard Business Review

In 2011, U.S. debt was 98% of GDP, its deficit 10% of GDP; Spanish debt was 69% of GDP, its deficit 8.5% The United States has its own money because the Federal Reserve can — and will — print unlimited dollars to avert sovereign default or rescue banks. Why can the U.S. But Spain avoids inflation.

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Are CEOs Really India’s Leading Export?

Harvard Business Review

Satya Nadella’s appointment as Microsoft’s CEO was greeted with headlines such as “ Why Microsoft and Everyone Else Loves Indian CEOs ,” echoing Time’s 2011 lead heralding “ India’s Leading Export: CEOs.” But have Indians really risen to the top of many of the world’s largest corporations?

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China's Impending Slowdown Just Means It's Joining the Big Leagues

Harvard Business Review

to 8% GDP growth rate already is a significant slowdown from the nearly 10% annual pace at which China''s economy had been growing until last year. China, with a per capita GDP of $7,827 in 2011 (in 2005 dollars, according to the latest edition of the Penn World Tables ), is getting close to that first landmark.

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The Hidden Costs of Cash

Harvard Business Review

The unbanked pay four times more in fees to access their money than those with bank accounts, and they pay $4 higher fees per month for cash access on average than those with formal financial services. However, this proportion is not growing; it has remained relatively static over the period 2005-2011, even as Mexico’s economy has grown.

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