A May Day demonstration in central Madrid. (Susana Vera / Courtesy Reuters) Since the onset of the European sovereign debt crisis in 2010, countries across the continent have responded by imposing fiscal austerity. From Greece to Ireland, governments have cut spending by double digits. Spain, which is in the midst of a recession and has an unemployment rate nearing 25 percent, slashed its budget by eight percent and plans to shrink its deficit by an additional 27 billion euros this year. Even Germany, whose economy is considered the healthiest in Europe, has pledged to eliminate 80 billion euros in spending by 2014. These national austerity policies will be reinforced across the continent by the EU fiscal compact, a treaty slated to go into effect next ... Continue reading →

From the start, the euro has rested on a gamble. When European leaders opted for monetary union in 1992, they wagered that European economies would converge toward one another: the deficit-prone countries of southern Europe would adopt German economic standards -- lower price inflation and wage growth, more saving, and less spending -- and Germany would become a little more like them, by accepting more government and private spending and higher wage and price inflation. This did not occur. Now, with the euro in crisis, the true implications of this gamble are becoming clear. Over the past two years, the eurozone members have done a remarkable job managing the short-term symptoms of the crisis, although the costs have been great. Yet the long-term challenge remains: ... Continue reading →

Creating a list of economic reporters to follow on Twitter? Make sure @BetseyStevenson is on your list. Photo by Flickr user Johan Larsson Last week a colleague of mine asked me which Twitter handles I follow for economic news. To answer his question and help you get a head start on Follow Friday, here’s a list of 10 Twitter handles that will help you keep up with the world economy or find the inspiration you’re looking for. @BetseyStevenson — Betsey was a Labor Department chief economist but is now a Wharton professor whose spending a little time at Princeton. She tweets about about gender inequality, offers telling insights into government data and is an expert in lovenomics and lifenomics. @JustinWolfers — Justin just looks like ... Continue reading →

More than half of the young children in the U.S. now have access to an iPad, iPhone or similar touch-screen device. For parents, their children's love of these devices raises a lot of questions. Kids for years have sat too close to the television for too long or played hours of Madden on family room game players. But pediatric neuroscientists and researchers who have studied the effects of screen-time on children suggest the iPad is a different beast. IPads can be wonderful, but are they wonderful for toddlers? Ben Worthen on Lunch Break explains why pediatric neuroscientists and researchers suggest that the iPad differs from TV and video games. Photo: Darcy Padilla for The Wall Street Journal. A young child will look away from a ... Continue reading →

There's no way to know what the parents were thinking. Maybe they were trying to scare their kid into good behavior. Maybe they were just goofing around. Maybe they thought it would be funny -- there's a large sign hanging above the machines, saying "Junior Wash: $2.95." Whatever it was, it could have easily ended in tragedy. Related: Hidden risks for kids at home In the silent footage from the laundromat's security camera, the dad scoops up the diaper-clad toddler, shoves him head first into the front-loading washer, and shuts the door. He and the mom seem amused at first, but panic quickly sets in when they realize that they can't get the washer door open. It's locked automatically, and the tot is trapped inside ... Continue reading →

The G8 Summit was dominated by talks on how to handle the latest financial setback in Europe. President Obama stood at the center of those talks, knowing that what Europe decides could have a lasting impact on the U.S. economy and his own political future. Host Michel Martin speaks with The Wall Street Journal's Sudeep Reddy. Copyright © 2012 National Public Radio®. For personal, noncommercial use only. See Terms of Use. For other uses, prior permission required. MICHEL MARTIN, HOST: I'm Michel Martin and this is TELL ME MORE from NPR News. Coming up, we want to talk about the hottest spring trends, but - no - we're not talking fashion. We're talking about food. Washington Post food critic, Tom Sietsema, gives us a few ... Continue reading →

By Sudeep ReddyAdam Posen spent much of his career analyzing the decisions of central bankers in advanced economies. In 2009, he became one. He spent the past three years as a voting member on the Bank of England�s Monetary Policy Committee. Over that period, he�s gone from warning fellow central bankers about the risks of inaction, to making strong moves through bond purchases to boost the British economy and � now � wondering whether he had fallen into the trap he had warned about so vocally. Posen was named Friday as the next president of the Peterson Institute of International Economics, a prominent Washington think tank. He�ll take that post next January after he concludes his Bank of England term in August. He spoke with ... Continue reading →

By Sudeep ReddyThe Peterson Institute for International Economics on Friday named Adam Posen, an outspoken policymaker at the Bank of England, as its new director. Posen, an American economist and vocal proponent of aggressive central bank action to boost struggling economies, had served as the Washington think tank’s deputy director before his appointment in September 2009 to a three-year term as an external member of the British central bank’s monetary policy committee. He has remained a senior fellow at Peterson. (The British government allows foreigners to serve as policymakers.) Posen will succeed Fred Bergsten, who plans to continue research at the think tank he founded three decades ago. As one of nine officials with a vote on British monetary policy, Posen has been one of ... Continue reading →

The Nostalgia Fact-Check is a recurring Vulture feature in which we revisit a seminal movie, TV show, or album that reflexively evinces an "Oh my God, that was the best ever!" response by a certain demographic, owing to it having been imprinted on them early. Now, years later, we will take a look at these classics in a more objective, unforgiving adult light: Are they really the best ever? How do they hold up now? We've already reconsidered a number of once-beloved entertainments. This week, we consider the seminal working woman sitcom Murphy Brown. Background: It was twenty years ago this month that Vice-President Dan Quayle made moronic-election-narrative history by giving a speech in which he essentially blamed the recent Los Angeles riots on Murphy ... Continue reading →

BY WILLIAM HOROBIN PARIS—French Socialist President François Hollande appointed Pierre Moscovici finance minister, calling in a politician with intimate experience of the euro creation to tackle the deepening crisis threatening the common currency. Mr. Moscovici, 54 years old, inherits a stalling French economy, saddled with record debt, and a tough mandate to make good on Mr. Hollande's double-barreled pledge to keep reducing government budget deficit while rekindling economic growth. Much of the new finance minister's time will be taken up by the euro as France and Germany ...BY WILLIAM HOROBIN PARIS—French Socialist President François Hollande appointed Pierre Moscovici finance minister, calling in a politician with intimate experience of the euro creation to tackle the deepening crisis threatening the common currency. Mr. Moscovici, 54 years old, ... Continue reading →