In The News

The Sovereign Wealth Explosion

Stuart E. Eizenstat November 8, 2007
A rise in state-owned funds and companies investing internationally has triggered national security concerns in a variety of countries and even some protectionist measures. These worries can sometimes be valid – observers of Russia's state-owned natural gas giant Gazprom, for instance, understand how government-controlled businesses may be used as tools of policy. However, former US...

Huge Effort Urged on Global Warming

Chrystia Freeland September 28, 2007
Contrary to a recent United Nations report that the fight against global warming will be costly, former US President Bill Clinton argues that a serious and ambitious program will save money and create jobs. For example, businesses investing in new, energy-efficient technology can dramatically decrease their utilities costs. Other analysts have also noted that the costs of future natural disasters...

Still Hanging On

Satoshi Kambayashi September 24, 2007
American foreign policy may have an independent streak, but the US depends on huge amounts of foreign capital. Despite some recent dire reports, the dollar’s recent decline has been small, considering recent volatility in the markets and tightening of credit worldwide, reports Satoshi Kambayashi. America’s tendency to accumulate debt contributes to the dollar’s dropping value. Kambayashi points...

Global Risk of US Credit Crisis – Part II

David Crane September 24, 2007
The globalization of finance has made vast amounts of capital available to many across the world, allowing select leading firms and individuals to become fabulously wealthy. But a lack of effective regulation and opaqueness of many financial instruments also exposed many firms and individuals to enormous risk. Globally connected financial markets and high-speed technology mean that one nation’s...

Global Risk of US Credit Crisis – Part I

David Dapice September 21, 2007
Uncertainty swirling in the US financial markets and the Federal Reserve's rate cut leave world players, along with US homeowners and investors, in a quandary. In the first part of this series, economist David Dapice analyzes the global implications as the uncertainty and lack of confidence associated with the credit crunch spread beyond US borders, hurting banks in Europe and investors in...

Managing Globalization

Daniel Altman September 21, 2007
The global impact of the US subprime mortgage crisis prompts some commentators to question if globalization is a stabilizing or destabilizing force on world markets. Increased interconnectedness has certainly improved the flow of money and credit, contributing to the creation of great wealth, but also magnifies the effects when investors overuse a risky tool, like bundles of high-risk, high-...

Japan Sweats It Out as It Wages War on Air Conditioning

Sebastian Moffett September 18, 2007
In August, Japan's three biggest banks joined the ranks of the "Cool Biz" initiative, a movement to reduce energy use and decrease carbon output. "Cool" businesses maintain building temperatures at 82 degrees Fahrenheit. Bank officials discovered that the move was good for both the environment and business. Concerned about global warming, Japanese customers avoid firms...