Money, Finance and the Real Economy: What went wrong? CEPS Paperback, 17 March 2015

The functions of the financial system of a developed economy are often badly understood. This can largely be attributed to free-market ideology, which has spread the belief that leaving finance to its own devices would provide the best possible mechanism for allocating savings. The latest financial crisis has sparked the beginnings of a new awareness on this point, but it is far from having led to an improved understanding of the role of the financial institutions. For many people, finance remains more an enemy to be resisted than an instrument to be intelligently exploited. Its institutions, which issue and circulate money, play an important role in the working of the real economy that it would be imprudent to neglect. The allocation of savings, but also the level of activity and the growth rate depend on it. In this book, the authors carefully analyse the close links between money, finance and the real economy. In the process, they show why today the existence of a substantial potential of saving, instead of being an opportunity for the world economy, could threaten it with ‘secular stagnation’.

Georgian drift. The crisis of Georgia's way westwards. OSW POINT OF VIEW 57, 2016-02-22

For several years Georgia has been experiencing processes which may be interpreted as symptoms of a deepening, multidimensional social and political crisis. Reforms have lost momentum, stagnation has set in, and in some areas the situation has begun to revert to the pre-revolution status (including rising crime levels). The Georgian political system has found itself in a serious crisis, while society has become increasingly frustrated and apathetic, mainly because people’s standards of living have been stagnating. This political and social malaise has been breeding Euro-scepticism and disenchantment with the West. A country that had been firmly navigating westwards, Georgia has now started drifting and slipping into malaise. This risks reversing what the country has achieved so far in the internal dimension, increasing instability and triggering a crisis in the pro-Western vector of Tbilisi’s foreign policy. While that may not necessarily mean a turn towards Russia, in the present situation it has been easier for Moscow to pursue its own interests in the region. Should Tbilisi’s pro-Western course become reversed or permanently stagnant, that would entail grave consequences for the country itself and beyond. It would be a defeat for the West and would undermine the European aspirations of countries like Ukraine or Moldova.

Between nuclear armament and economic pragmatism: Is North Korea facing change? Asia Policy Brief 2013/04, September 2013

The balance a year and a half after the meanwhile second hereditary power transfer to Kim Jong-Un (Kim Chŏng-ŭn), grandson of the founder of the state, is undecided. The breakdown of the system, predicted by many analysts, has not happened yet. Neither have the reforms that were expected from the young man who has supposedly been educated in Switzerland. The country is not in stagnation however – quite the opposite. What has happened in North Korea in the last two years? What development trends are there and how can other countries approach them? These questions are discussed in the light of the tense security-political and humanitarian environment and the corresponding risks in this Asia Policy Brief.