The European Central Bank (ECB) has spent much of this decade convincing markets that the euro is irreversible. It is therefore mildly ironic that policy makers in Frankfurt may be in trouble because of the sudden return of confidence in the single currency. Investors flocking to the euro have pushed it above $1.20, a 14 percent appreciation since the start …

Congress returns to Washington this week to a meat grinder: In short order, members must raise the debt ceiling, pass a budget (to avoid a government shutdown) and deliver emergency relief to the victims of Hurricane Harvey. So it might seem unrealistic to suggest that they strike a bipartisan deal on child-care tax credits. Yet this is precisely the kind …

Since December 2015, China’s government has been talking up what it calls supply-side reform. State media says the goal is “stimulating business through tax cuts, entrepreneurship and innovation while phasing out excess capacity.” That sounds reasonable. In reality, though, supply-side reform is doing almost nothing to reduce capacity, and may well be worsening the inefficiencies that are holding back China’s …