
By Kenneth Rogoff
Markets nowadays are fixated on how high the US Federal Reserve will raise interest rates in the next 12 months. This is dangerously shortsighted: the real concern ought to be how far it could cut rates in the next deep recession. Given that the Fed may struggle just to get its base interest rate up to 2% over the coming year, there will be very little room to cut if a recession hits.

Argentine and British diplomats will be meeting next 10 December in Geneva with the Red Cross to advance in the identification of the remains of 123 Argentine combatants buried at Darwin cemetery in the Falkland islands since 1982.

A European Union parliament delegation of fourteen lawmakers is in Buenos Aires to prop Mercosur/EU trade talks, and even admitting there has been advances, and prospects are encouraging, they also acknowledged that many objections from both sides persist.

The Prefect for the Congregation for the Evangelisation of Peoples, Cardinal Fernando Filoni, has appointed Fr Hugh Allan OPraem, Prior of Norbertine Community of St Philip's Priory, Chelmsford, as the new Apostolic Administrator of the Prefecture of the Falkland Islands and Ecclesiastical Superior of the Missions sui iuris of the islands of Ascension, St Helena and Tristan da Cunha ad quinquennium (for a period of five years).

The Federal Reserve, on Wednesday following a two-day meeting, and with two members dissenting, left interest rates unchanged but anticipated the FOMC “judges that the case for an increase in the federal funds rate has continued to strengthen, but decided, for the time being, to wait for some further evidence of continued progress toward its objectives”.

The European Union and Canada signed a free trade agreement on Sunday that aims to generate jobs and growth though it must still clear some 40 national and regional parliaments in Europe in the coming years to enter fully into force.

Brazilian president Michel Temer said that Portugal and Spain are determined to help speed trade negotiations between Mercosur and the European Union. Temer made the announcement on hosting Portuguese Prime Minister Antonio Costa who was on a brief visit to Brazil for the Community of Portuguese Language Countries summit in Brasilia.

Tuesday saw the first ever state visit by a Colombian president to the UK. Nobel Peace Prize laureate, President Juan Manuel Santos is visiting for three days as an official guest of Her Majesty The Queen and the Duke of Edinburgh. He will have a working lunch with Prime Minister Theresa May, visit Belfast and attend events at Mansion House, the Natural History Museum and his old university, the LSE.

For the first time ever, an annual Latin American Summit has endorsed Spain’s position on Gibraltar. Spain’s Secretary of State for International Cooperation in Latin America confirmed that the 32 countries attending have supported Spain’s call to the United Kingdom to start bilateral sovereignty talks over the Rock.

Concerned about how the UK’s departure from the European Union over the next two years will impact their communities, leaders from the British Overseas Territories in the Caribbean have agreed to form a group to focus on the whole question of Brexit, reports the region's media.