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19071. How Flexible Can Inflation Targeting Be and Still Work?

Author:
Adam S. Posen and Kenneth N. Kuttner
Publication Date:
09-2011
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
This paper takes up the issue of the flexibility of inflation targeting regimes, with the specific goal of determining whether the monetary policy of the Bank of England, which has a formal inflation target, has been any less flexible than that of the Federal Reserve, which does not have such a target. The empirical analysis uses the speed of inflation forecast convergence, estimated from professional forecasters' predictions at successive forecast horizons, to gauge the perceived flexibility of the central bank's response to macroeconomic shocks. Based on this criterion, there is no evidence to suggest that the Bank of England's inflation target has compelled it to be more aggressive in pursuit of low inflation than the Federal Reserve.
Topic:
Economics, International Trade and Finance, Markets, and Monetary Policy
Political Geography:
England

19072. Renminbi Rules: The Conditional Imminence of the Reserve Currency Transition

Author:
Arvind Subramanian
Publication Date:
09-2011
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
Against the backdrop of the recent financial crisis and the ongoing rapid changes in the world economy, the fate of the dollar as the premier international reserve currency is under scrutiny. This paper attempts to answer whether the Chinese renminbi will eclipse the dollar, what will be the timing of, and the prerequisites for this transition, and which of the two countries controls the outcome. The key finding, based on analyzing the last 110 years, is that the size of an economy—measured not just in terms of GDP but also trade and the strength of the external financial position—is the key fundamental correlate of reserve currency status. Further, the conventional view that sterling persisted well beyond the strength of the UK economy is overstated. Although the United States overtook the United Kingdom in terms of GDP in the 1870s, it became dominant in a broader sense encompassing trade and finance only at the end of World War I. And since the dollar overtook sterling in the mid-1920s, the lag between currency dominance and economic dominance was about 10 years rather than the 60-plus years traditionally believed. Applying these findings to the current context suggests that the renminbi could become the premier reserve currency by the end of this decade, or early next decade. But China needs to fulfill a number of conditions—making the reniminbi convertible and opening up its financial system to create deep and liquid markets—to realize renminbi preeminence. China seems to be moving steadily in that direction, and renminbi convertibility will proceed apace not least because it offers China's policymakers a political exit out of its mercantilist growth strategy. The United States cannot in any serious way prevent China from moving in that direction.
Topic:
Economics, Markets, and Monetary Policy
Political Geography:
United States and China

19073. The Ongoing Insurgency in Southern Thailand: Trends in Violence, Counterinsurgency Operations, and the Impact of National Politics

Author:
Zachary Abuza
Publication Date:
09-2011
Content Type:
Working Paper
Abstract:
Since January 2004, a Malay-Muslim-based insurgency has engulfed the three southernmost provinces in Thailand. More than 4,500 people have been killed and over 9,000 wounded, making it the most lethal conflict in Southeast Asia. Now in its 8th year, the insurgency has settled into a low-level stalemate. Violence is down significantly from its mid-2007 peak, but it has been steadily climbing since 2008. On average, 32 people are being killed and 58 wounded every month. Most casualties are from drive-by shootings, but there are also about 12 improvised explosive device (IED) attacks a month.
Topic:
Conflict Resolution, Insurgency, Fragile/Failed State, and Sectarian violence
Political Geography:
Thailand and Southeast Asia

19074. Building Civil Servant Capacity in South Sudan

Publication Date:
10-2011
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies
Abstract:
'Coaching and mentoring for capacity' has become a popular approach to civil servant capacity building in fragile states. in South Sudan, the 'IGAD initiative' is currently deploying 200 coaches and mentors to South Sudan from Ethiopia, Kenya and Uganda. this brief recaps on some main tenets of the initiative and presents a number of policy recommendations.
Topic:
Conflict Prevention, Security, Sovereignty, Governance, and Self Determination
Political Geography:
Uganda, Kenya, Africa, Ethiopia, and South Sudan

19075. Libya: Beyond Regime Change

Author:
Henrik Boesen Lindbo Larsen
Publication Date:
10-2011
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies
Abstract:
NATO's intervention in Libya has highlighted the risks connected with enforcement of humanitarian principles in Europe's neighbourhood through engaging in regime change. The EU now seems to remain the only viable forum if the Western states wish to play a more permanent role in Libya.
Topic:
Conflict Resolution, Regime Change, and Insurgency
Political Geography:
Europe, Libya, Arabia, and North Africa

19076. Europe Fighting Irregular Migration – Consequences for West African Mobility

Author:
Nauja Kleist
Publication Date:
10-2011
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies
Abstract:
In collaboration with African countries, the EU is fighting irregular migration to Europe through border control and deportations. However, rather than halting irregular migration, such policies reconfigure mobility flows and make migration routes more dangerous and difficult.
Topic:
Migration, Labor Issues, and Immigration
Political Geography:
Africa and Europe

19077. Bosnia: What Does Republika Srpska Want?

Publication Date:
10-2011
Content Type:
Policy Brief
Institution:
International Crisis Group
Abstract:
Republika Srpska's flirtation in June 2011 with a referendum is a reminder that Bosnia's smaller entity still threatens the stability of the country and the Western Balkans. It is highly unlikely that the RS will secede or that the Bosniaks will attempt to eliminate it, but if its Serb leaders continue driving every conflict with Sarajevo to the brink, as they have done repeatedly to date, they risk disaster. The agility of leaders and the population's patience need only fail once to ignite serious violence. Over the longer term, RS's determination to limit Bosnia and Herzegovina (BiH) to little more than a coordinator between powerful entities may so shrivel the state that it sinks, taking RS with it. RS also suffers from its own internal problems, notably a culture of impunity for political and economic elites and a lingering odour of wartime atrocities. Its leadership, especially its president, Milorad Dodik, needs to compromise with Sarajevo on state building and implement urgent entity-level reforms.
Topic:
Conflict Prevention, Ethnic Conflict, and War
Political Geography:
Bosnia and Balkans

19078. South Sudan: Compounding Instability in Unity State

Publication Date:
10-2011
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
Unity state confronts a set of challenges unparalleled in South Sudan. Some exemplify concerns that register across the emerging republic; others are unique to the state. Situated abreast multiple frontiers, its political, social, economic and security dilemmas make for a perfect storm. Some have festered for years, while more recent developments—prompted by the partition of the "old" Sudan—have exacerbated instability and intensified resource pressure. Recent rebel militia activity has drawn considerable attention to the state, highlighting internal fractures and latent grievances. But the fault lines in Unity run deeper than the rebellions. A governance crisis—with a national subtext—has polarised state politics and sown seeds of discontent. Territorial disputes, cross-border tensions, economic isolation, development deficits and a still tenuous North-South relationship also fuel instability, each one compounding the next amid a rapidly evolving post-independence environment. Juba, and its international partners, must marshal attention and resources toward the fundamental sources of instability in places like Unity if the emerging Republic is to realise its full potential.
Topic:
Security, Development, Economics, and Oil
Political Geography:
Africa, United States, and Sudan

19079. Table of Contents

Publication Date:
10-2011
Content Type:
Journal Article
Institution:
Council of American Ambassadors
Abstract:
No abstract is available.

19080. From Revolution to Transition in Tunisia

Author:
Gordon Gray
Publication Date:
10-2011
Content Type:
Journal Article
Institution:
Council of American Ambassadors
Abstract:
President Zine el-Abidine Ben Ali's abrupt departure on January 14 set Tunisians upon a new and hopeful path to representative government and greater personal freedom, while setting off a wave of democratic protest across the region. Yet the tumultuous period from mid-December to mid-February—a time of popular uprising, political violence, Ben Ali's departure, and the early instability of a new government—has been followed by months of deliberately paced and publicly debated transition to a new government enjoying popular legitimacy. In fact, what is most remarkable about the process since Ben Ali's overthrow is how the people of Tunisia have, in a largely peaceful and orderly manner, set themselves to the immensely complex task of consolidating their democratic transition.
Topic:
Political Violence, Democratization, and Government
Political Geography:
Tunisia