Section: Peterson Institute for International Economics (USA)
Lessons from the past for Ukrainian recovery: A Marshall Plan for Ukraine
I Introduction Dear members of the Committee, it is a pleasure to appear before you today to discuss the lessons from the past for Ukraine’s economic recovery, and rebirth as a full member of the group of advanced democratic market economies and the EU. Following an approaching military victory over Russia, Ukraine stands before a double...
Sanctions against Russia will worsen its already poor economic prospects
The sanctions imposed on Russia by the United States, the European Union, and other countries that are against Russia’s war on Ukraine have started damaging its economy and will erode it further in the long term. Russia is, after all, the world’s ninth-largest economy and a critical supplier of energy and other raw materials, so any...
Rise in coal use and decline in hydropower cancelled out EU gains in renewables this year
The European Union’s transition to green energy sources was disrupted by Russia’s invasion of Ukraine and President Vladimir Putin’s decision to sever Europe’s gas supply. Faced with mounting energy costs and the threat of energy shortages, EU policymakers revived coal-fired power plants, and a scorching summer depleted...
Lithuania’s foreign minister talks China, Russia, and transatlantic relations
Lithuania has been one of the European Union’s loudest supporters of Ukraine and retaliatory sanctions against Russia. The country also provoked Chinese ire after opening a de facto Taiwanese embassy in Vilnius, spurring Beijing to suspend Lithuanian exports. New anti-coercion legislation will allow the European Union to retaliate against...
Global Economic Prospects: Spring 2023
The Peterson Institute for International Economics (PIIE) will present its semiannual Global Economic Prospects outlook for the US and global economies, including inflation and its implications for monetary policy. Presenters will include PIIE president Adam S. Posen and PIIE nonresident senior fellows Karen Dynan and Jacob Funk Kirkegaard. Dynan...
The EU should fast-track negotiations for Ukraine’s membership
As the brutal war in Ukraine enters its second year, European and US military assistance has clearly made a difference in helping the country beat back the Russian invading forces. But now Europe must do more. It should grant President Volodymyr Zelenskyy’s request to accelerate Ukraine’s membership bid to the European Union. This...
Europe’s wartime embrace of fossil fuels wanes as focus returns to combating climate change
Europe was forced to increase the power output of its coal and gas-fired plants to meet its energy needs once gas imports declined after Russia invaded Ukraine. Worries about an energy crisis stalled the continent’s green transition. But that trend has proven temporary, reflecting the efficacy of EU carbon pricing. The increase in coal and...
America’s global leadership is being undercut by US economic policies
President Joseph R. Biden’s rousing State of the Union speech this month vividly reiterated American support for democracy in Europe and Asia. The United States, he declared, is forging military and political ties with allies to support Ukraine against Russian aggression. What was missing in the President’s speech was even a passing...
Europe’s energy problem is now climate change, not Russia
Russia’s weaponization of its natural gas supply to Europe triggered big increases in energy prices and double-digit inflation last summer. But more recently, the EU success in energy conservation and construction of new liquefied natural gas (LNG) terminals, combined with mild weather, has led to declines in European natural gas prices to...
Lessons for systemic liquidity risk from recent crises
Several recent events, including the March 2020 “dash for cash” at the start of COVID-19 lockdowns, the volatility in EU electricity markets following Russia’s invasion of Ukraine, and the September 2022 meltdown in UK markets under Prime Minister Liz Truss, provided new lessons for monetary authorities on meeting systemic short-term...
