When you inject capital into the parent, it may or may not benefit the subsidiary.
In a moment of stress, funding may go to systemically-important firms, which could pull funding away from firms not making the cut.
If you step back and think about it, just a little over two years ago, in 2009, it was not surprising at all to see Chinese exports growing at a 30-plus percent clip.
Countries that are occasionally immature in their ability to manage their economic affairs as well as they should - and that includes most of them - are going to find that the world is at risk.
The risk of policy contagion could be magnified if a new funding arrangement were agreed between Argentina and the IMF before a comprehensive policy framework is developed that addresses fundamental investor concerns.
You look at the U.S. budget deficit, and you cannot help but feel that this is a serious accident waiting to happen. And not just a serious U.S. accident, but a serious global accident.
2005 is highly likely to be a more challenging environment, both for policymakers and investors.
The emphasis so far on fiscal austerity, while to a degree necessary for the countries facing market funding difficulties, is excessive when carried out across the board.
Some of the policy measures that are important are politically difficult if taken independent of actions by others in support of common goals. Joint actions are therefore needed, and establishing a G-11 with an effective role for the IMF provides the viable way forward.
A new forum is needed that reflects the realities of today's globalised world and the rising importance of emerging markets.
We can no longer contemplate a world in which public or private sector funds are used to bail out or recapitalize failing firms.
A core group of the world's leading economies need to come together and hammer out an understanding.
Exchange rate understandings are of little use on their own.
How can the United States preserve its financial and security leadership role when it conducts itself with such ineptitude and such disregard for the consequences for the world?
The Germans argue - and I can fully understand them - that the euro countries must surrender their sovereignty, because that is the only way to implement budget discipline in a fiscal union.
The Fed cannot levitate markets forever. And when they finally do move, I think we have to be prepared for a considerable amount of turbulence.
Unfortunately, I think we could see that fairly early in 2015: The cloud of economic weakness in Russia is spreading over Europe. It has the potential of spreading into contagion into other emerging markets, particularly those with large energy companies, such as Petrobras in Brazil.
The Greek people deserve an economy that is not burdened forever by a heavy bureaucracy and a bloated public sector.
I had the privilege of living in Greece in the early 1970s.
If the official community is interested in asking the private sector to take another look at Greece, then it will have to be only as part of a broader process of addressing the full range of sovereign debt issues in Europe.
