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China faces some serious economic problems. One main problem is that China seems to be suffering from excess capacity resulting from an overinvestment in factories, retail stores or infrastructure which leads to an imbalanced supply and aggregate demand relation. Aggregate demand is the total demand for a nation's goods and services from domestic households, firms, the government and foreigners. The article reveals two different approaches to evaluating China's economy: the Keynesian theory and the Austrian school theory. The Keynesians argue that aggregate demand drives stability and that governments can and should help in difficult times. The Chinese government has the tools to increase aggregate demand as it could for example "adjust interest rates and bank reserve requirements, instruct state-owned banks to maintain lending", deploy foreign exchange reserves, or initiate construction and infrastructure projects. On the other hand, the Austrian school of economics believes that it is hard for the government to invest money wisely, particularly in China, where there seems to be an environment of "economic favoritism". The Keynesians may believe that China will be able to manage its overcapacity; however, the Austrian theory argues that the Chinese government will distort resource allocation and further limit aggregate demand. - Julieta Fischer

It's a rare sight, seeing US banks taking precautions instead of relying on the federal government for a bail out. This though is the precise case at the moment. Seeing as it still isn't clear whether or not Greece is staying in the Eurozone, US banks such as Meryll Lynch and JPMorgan are taking necessary precautions to insure that should Greece retreat from the Eurozone, the banks wouldn't be hit as hard. In a recent survery, sent out by a private advisory firm, 80 percent of the answers predicted that Greeve is going to leave the Eurozone, and a fifth of the given 80% believe that more countries may follow Greece's potential lead. 

Spain's 17 regional governments have agreed to stick to budget deficit targets set by the central government but regions are struggling to meet the deficit target of 1.5% gross domestic product for this year. Some of the regions have accessed an 18 billion euro emergency fund set up by the central government to meet their debt financing obligations. Furthermore, five regions have asked for a combined 15 billion euros. The regional leaders have called for a redistribution of the burden sharing between the central and regional governments in meeting deficit targets. However, Prime Minister Rajoy has stated that the overhaul should not be negotiated until  next year, to avoid unnerving investors already concerned about Spain's lack of budgetary discipline.

As we know, inflation is a rise in price levels. In India at the moment, there is a slide in the value of the rupee, and simultaneously food, fuel and manufactured items are raising in price, leading in a high inflation. This is an exmple of stagflation becuase it is a 'cost-push' inflation (inflation caused by rising costs of products).  In India, the inflation rate was expected to rise 6.7% (by economists) but it actually rose 7.23%.

China has accused Italy, Greece and the EU for supposedly illegally subsidizing domestic solar manufactururs (suspected that due to a decline in Italian imports of Chinese Solar panels.)  The US international Trade Commision then made a locked tariff of 24-36% on imported solar panels from China.  A year ago the Coalition of american Solar Manufacturers filed antidumping cases against China, saying they were flooding the US market with inexpensive and heavily subsidized solar panels that the US couldnt compete with.  The US fears that China is dumping because it means their domestic producers are not able to compete in the market for solar panels. Therefore this high tariff of 24-36% has been imposed to promote consumption of domestic solar panels.