In 1844, the American poet Ralph Waldo Emerson observed that “railroad iron is a magician’s rod in its power to evoke the sleeping energies of land and water.” What he saw was that railroads could substantially increase the economic potential of the United States. And he was proven right in many ways. The railroads not only linked up the far-flung corners of the United States; they also linked up its capital markets. The need to finance this project of unprecedented scale radically transformed the US financial system, changing its destiny forever. Today, Europe is at a similar juncture. We have emerged strongly from ... (full story)

European Central Bank President Christine Lagarde on Friday said that Europe is now at a critical juncture, with deglobalization, demographics and decarbonization looming on the horizon. "There are increasing signs that the global economy is fragmenting into competing blocs," she said at the European Banking Congress, according to a transcript. Focusing on Europe, she said that a continuous decline in the population of working age looks set to start as early as 2025, alongside climate disasters that are increasing every year. Her answer to these shocks was that massive investment would be needed in a short space of ... (full story)