What Comes Next in Yemen?

Policy makers are scrambling to respond decisively to Yemen’s instability after the failed Christmas Day attack on a U.S. passenger jet was tied to al-Qaeda in the Arabian Peninsula. In the first of a new Carnegie series, Yemen: On the Brink, Sarah Phillips explains that there are limits to how much foreign intervention can accomplish. Yemen’s political system needs to become less centralized and more inclusive.

Israel’s Challenge to the U.S.

Israel's announcement on Tuesday during Vice President Biden's visit that it will build additional Jewish housing in East Jerusalem has strained relations between the United States and Israel and threatened the renewal of peace talks. Writing in the New York Times, Michele Dunne explains that the incident has inflamed ill will and distrust, and Nathan Brown says that the flare-up over building in Jerusalem masks deeper problems that will complicate negotiations.

Egypt’s Political Future

Over the next year, Egypt will hold three important elections. Amr Hamzawy and Nathan Brown explain that the Egyptian Muslim Brotherhood’s reduced political engagement and increased focus on its traditional religious, educational, and social agenda may mark the loss of an opportunity for a more pluralistic political system in Egypt. Marina Ottaway describes how the elections stand no chance of changing the distribution of power in the country.

Elections in Context

The West views foreign elections as turning points that define the success or failure of a country’s democratization. Marina Ottaway explains that elections are only small parts of much larger and more complicated stories; they do not cause power shifts, they can only reflect power shifts that have already taken place.

More on Elections:

The Iraqi Election Campaign [commentary]

The Cult of Low Inflation

The sovereign debt crisis in Greece, coupled with the loss of competitiveness in Spain, Ireland, and Italy, threaten the stability of the euro itself. Uri Dadush and Moisés Naím suggest that the time has come for European policy makers to consider moderately raising their inflation targets, in order to increase the effectiveness of monetary policy and enable real wage adjustments.

More on the Euro Zone:

Greek Crisis: A Dire Warning From Argentina and Latvia [international economic bulletin]

The Euro Under Attack [event]

Europe’s Test—What Greece’s Debt Crisis Means for the World [video q&a]