Amidst concerns of a Greek default, French President Nicolas Sarkozy and German Chancellor Angela Merkel said they want Greece to remain in the EU. We talk about jittery markets and the prospect of a new world order with David Hale, founding chairman of David Hale Global Economics.
To allow for more flexible funding of World War I, the U.S. government enacted its first debt ceiling in 1917. Economist James Galbraith takes us through the history of the normally uncontroversial procedure. Galbraith is a professor of government at the University of Texas at Austin.
American credit ratings agencies recently downgraded Greece, Portugal and Ireland’s debt to junk status, making it harder for the EU to avoid an economic meltdown. In Europe, there’s growing discontent over these agencies’ unchecked power.
For all of us who have bought milk or Corn Flakes lately, the most relevant economic news this week will likely be data on prices. Both the consumer price index and the producer price index come out this week.