In The News

The Financial Crash Will Not Bring About “Globalization on Steroids”

Joshua Kurlantzick March 11, 2013
Despite the international outlook of the leaders of the world’s two biggest economies – the US and China – Joshua Kurlantzick argues that there is a new trend of deglobalization. The precarious state of the world economy is contributing to the prominence of national boundaries in shaping economic policies. Foreign investment has dried up as national legislatures reject takeovers or funding for...

UK Will Find EU Bank Bonus Cap Hard to Lift

John O'Donnell March 6, 2013
Europeans are impatient with the pace of economic recovery. The European Union surprised the financial industry by imposing a cap on bonuses for banks’ senior managers and traders, and the mood was also reflected by Swiss voters who approved of shareholders having a say on board and executive salaries. The plan is to reduce excessive pay and end the practice of rewards for crisis. How many...

Heading South?

Niveen Wahish February 15, 2013
A thriving national economy requires a political system that’s supported, or at least tolerated, by citizens. Political instability is threatening the Egyptian economy, driving inflation and deterring foreign investment. Currency woes contribute to shortages of basic commodities that could add to more unrest. “People needing to change hard currency into Egyptian pounds are now going to the black...

China Play in US Election

Edward Gresser October 15, 2012
US politicians often gripe about China, but campaign promises to “get tough” aren’t easy to keep. China is the third largest export market for US products. The Obama administration has already heightened enforcement of trade laws and filed more trade complaints than the previous administration. Even so, Mitt Romney’s website suggests that the Obama administration extends “acquiescence to the one-...

Will Printing Money Do It?

Nayan Chanda October 9, 2012
Central banks can add to the money supply by lowering interest rates for major financial institutions and purchasing bonds, thus increasing credit and liquidity – and this is what major central banks in the West have set out to do until economic growth and jobs return. The practice amounts to “printing money.” For example, the US vows to insert $40 billion each month into the economy to purchase...

Eurozone Heaves Sigh of Relief – For How Long?

Jean-Pierre Lehmann July 3, 2012
The European Union’s heads of state avoided disaster for the time being, preventing impending collapse of Spanish banks and offering assistance to Italy, too. Europe has decided to move toward a more complete integration. The steps are cautious, but “the USE – United States of Europe – would seem to be the ultimate destination, in fact if not in name,” explains Jean-Pierre Lehmann. Yet nobody...

In Europe, North Battles South

Joergen Oerstroem Moeller March 16, 2012
European economies can be divided into two categories – one that’s more competitive and flexible; the other more rigid, struggling to repay debts. With a few exceptions, countries of northern Europe are generally more competitive than the countries along the Mediterranean, explains researcher Joergen Oerstroem Moeller. He urges that the European Union cooperate in enacting structural changes and...