World economy

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It’s time to rethink both Keynes and Hayek… and fix unemployment

MADRID | By Carlos Díaz Güell | The Western world’s unemployment has reached brutal dimensions. There are more than 200 million jobless people around the world, representing 5.9 per cent of the labour force on the planet, according to the International Labour Organisation. Perhaps it is time to retire or rethink Keynes and also–why not?–Hayek and seek new formulas that will lead us out of the tunnel.

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China’s credit situation: is it that bad?

What is China’s credit real situation? Amid international markets’ woes, our experts put data into perspective. For Antonio Sánchez-Gijón, overall indebtedness of the Chinese economy begins to be seen as excessive and difficult to control. However, Ray Kwong believes liquidity shortages are normal in China, especially when banks are moving assets around to meet capital requirements before the end of a quarter, like around now.

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US medical costs decline, yet are still a burden for consumers

NEW YORK | By Ana Fuentes | For the first time since 1970, medical costs in the US went down a seasonally adjusted 0.1% in May, according to the Labor Department, due to more generic drugs reaching the market and the effects of the new federal law. However, consumers shouldn’t get overexcited: they will still spend a big chunk of their wages on health care.

Germany gives Obama a cold reception

NEW YORK | By Ana Fuentes | The US president visited his key ally in Europe amid tensions caused by the American surveillance program, their use of German military bases for drone strikes and Obama’s disagreement with chancellor Angela Merkel on how to handle the euro crisis.

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The myth of lower wages and job creation

MADRID | By Luis Arroyo | Lower salaries do not always bring more employment. This is a myth. The liberalisation of the labour market is altogether another matter, and in some Eurozone countries–as Spain–we are still waiting for it to be implemented.

China, a new maturity stage

Keep in mind a new concept: Lionomics. An acronym that gives name to the ambitious process of economic reform the new Chinese Prime Minister Li Keqiang must bring forward.