Since Greenhouse Gases (GHG) emission in any country accelerates the process of global warming, this is obviously an area where a solution involving global cooperation is needed. No country will have sufficient incentive to contain its own emissions unless it is part of a global compact. Such a compact, in turn, is possible only if there is a fair distribution of the burden.
After running at a subdued pace during the first half of the year, gross domestic product growth has picked up in the most recent data, and inflation has been firming toward the Federal Open Market Committee’s 2 percent target.1 Although the economy has moved back to the vicinity of the Committee’s employment and inflation targets—suggesting that the cyclical drag on the economy has been greatly reduced, if not largely eliminated—along some dimensions this has not been a happy recovery.