A temporary leave of absence from the eurozone would allow Greece to achieve a price-level decline relative to other eurozone countries, and would make it easier to adjust the relative price level if Greek wages cannot be limited.
The world's 20 most important finance ministers and 20 most important central bankers traveled to Washington this month from every part of the globe to accomplish, predictably, exactly nothing.
China's new five-year plan will have important implications for the global economy. Its key feature is to shift official policy from maximizing GDP growth toward raising consumption and average workers' standard of living.
There is no doubt that the American economy rallied strongly at the end of 2010. But how much of that was due to the United States Federal Reserve's temporary policy of so-called "quantitative easing"?
The key feature of the agreement is to continue the existing 2010 income-tax rates for another two years with no commitment about what will happen to tax rates after that.
The US Federal Reserve's policy of "quantitative easing" is reducing the value of the dollar relative to other currencies that have floating exchange rates.
The United States' import bill now exceeds $2.4 trillion a year, more than twice that of China and greater than that of the 27 European Union countries combined.
American economic policy aims for a dollar that is strong at home and competitive abroad.
And if Japan's domestic net saving surplus vanishes, the current $175 billion of capital outflow would no longer be available to other countries, while Japan might itself become a net drain on global savings.
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