In The News

Promises, Promises: Will the G-20 Haunt or Help Obama Later On?

Steven R. Weisman September 30, 2009
The results of the recent G-20 Summit in Pittsburgh could be a critical turning point in global integration given that the grouping has now replaced the G-8. It could also be a thorn in US President Obama’s side. According to Editorial Director of the Peterson Institute for International Economics Steven Weisman, the pledges made during the summit could place Obama at odds either with his allies...

An Unlikely Marriage

Nayan Chanda August 20, 2009
The notion that China and America have fused into one economy, termed “Chimerica”, is now likely a chimera, according to the co-creator of the phrase, economic historian Niall Ferguson. This does not mean the two countries are not ineluctably linked; perhaps even to the degree that loosening the ties might precipitate unforeseen, but negative consequences. But it does call into question the idea...

A Retreat From Global Banking

Floyd Norris July 24, 2009
Globalization seems to be receding in the world of banking not because the banks themselves have turned inward, but because governments are now more local in focus. Moreover, the desire or need to find a scapegoat for the crisis has also chipped away at globalization’s edifice: the Federal Reserve and the Treasury in the US have had to defend in Congress their actions during, rather than their...

Fading of the Dollar’s Dominance

Anthony Faiola June 26, 2009
A number of experts believe the US dollar is unlikely to retain its title as the world’s reserve currency due to structural changes in the global economy and the mounting US deficit. For instance, China appears to be taking a stronger stance on the yuan’s global role, though the currency remains relatively unusable in large international transactions. Meanwhile the International Monetary Fund is...

China Takes Aim at Dollar

Andrew Batson March 25, 2009
China has proposed that a new currency gradually replace the US dollar as the world standard, reports the Wall Street Journal. The proposal from Zhou Xiaochuan, governor of People’s Bank of China, could reflect a desire to straighten out global finances and frustration over dependence on the US – as well as a warning about Chinese impatience over funding immense US debt. China has $2 trillion in...

Chronicle of a Disaster Foretold

Ernesto Zedillo October 15, 2008
Low interest rates and plenty of credit in recent years created a housing bubble with the attendant risk. Investment banks divided the loans into complex financial packages, many labeled as safe and even insured. But the investments were safe only as long as housing prices continued to climb. “Once again the markets forget that financial innovations are likely to be underpriced and therefore...

Icelandic Shoppers Splurge as Currency Woes Reduce Food Imports

Chad Thomas October 14, 2008
Three major Icelandic banks have collapsed, raising uncertainty about Iceland’s currency and ability to repay loans. Inventories of goods, including food and clothing, are shrinking. The island nation must import most food and other products, while the “government has asked banks to prioritize foreign currency transactions for essentials such as food, drugs and oil,” explains Chad Thomas,...