In The News

Christian Reiermann May 10, 2011
Countries immersed in debt squirm under the scrutiny of creditors and angry taxpayers. Spiegel Online reports that Greece, seeking relief, is considering abandoning the euro. The Greek government has denied the report. The story by Christian Reiermann reports that any such relief would be short-lived: Capital markets would sever ties. Banks would go insolvent. EU aid to Greece would stop....
Nayan Chanda May 9, 2011
European unity is being tested by global recession, fierce international competition and the politics of impatience. Voters in the strongest EU economies are increasingly less keen on bailing out fellow members, like Greece, for economic mismanagement. Right-wing parties with isolationist, anti-immigration and protectionist platforms are gaining traction in Finland, Sweden, Austria, the...
Bruce Stokes May 2, 2011
To encourage growth, governments borrowed to finance infrastructure and current expenditures, and anticipated revenues to eventually cover the costs. Low interest rates led to surging debt, investment bubbles and unrealistic growth projections rather than a sustainable economy with jobs and tax revenues. This two-part series analyzes the impending crisis for advanced economies. Europe had hoped...
Nayan Chanda April 26, 2011
An economist for a US investment bank developed the acronym BRIC a decade ago, lumping together the solid, fast-growing economies of Brazil, Russia, India and China and arguing the four would outpace the top six Western economies before 2050. The analysis resonated, fueling confidence among the hot emerging economies, which have since added South Africa to their ranks. The BRICS agenda is...
Alan Wheatley April 13, 2011
Brazil, Russia, India and South Africa struggle to compete against once-poor China, now the world’s second largest economy. India ranks 4th, Russia 7th, Brazil 9th and South Africa about 20th in world GDP. Growing South-South commerce, which represents 17 percent of the global total versus 7 percent in 1990, is imbalanced, reports Alan Wheatley, global economics correspondent for Reuters. So far...
Vikram Mansharamani April 6, 2011
China remains one of the world’s fastest growing economies, yet numerous signs point to a speculative mania underway. While investors anticipate China’s economic growth to continue apace at 8 percent – reinforcing the flurry of demand, easy money and excessive building – a slowdown to 5 percent is not outlandish, explains Vikram Mansharamani, Yale lecturer and author of a book on spotting...
Doug Saunders January 21, 2011
A three-nation European tour by the Chinese vice-premier underscores China’s critical role for the continent’s economy. “China, in short, has become Europe's rescuer,” writes Doug Saunders for the Globe and Mail. China easily directs its reserves to buy up bonds from countries in shaky financial condition. In return, China wants the European Union to open its markets to Chinese exports. It...