In The News

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...

The Life of the Chinese Gold Farmer

Julian Dibbell July 4, 2007
World of Warcraft, produced by Blizzard Entertainment, is one of the most profitable massively-multiplayer-online (MMO) games in history. Players collect currency to buy weapons and other gear to fight monsters, by looting or selling items to other players. At a normal playing rate, the process of collecting currency, known as “the grind,” takes about four months to complete. However, Chinese...

Capitalism with Special Chinese Characteristics

Gustav Ranis June 19, 2007
On the surface, China’s fast-growing economy looks superb. However, growing income inequality and the massive inflow of foreign funds can pose problems that often go unrecognized. International economics professor Gustav Ranis categorizes China’s economic problems as a type of “Dutch Disease,” a phenomenon when rapid growth in one export can lead to pockets of excessive wealth, weakening of other...

$12 Trillion Monster Threatens Globalization

William Pesek June 12, 2007
Some countries control great pools of wealth, building funds from oil or other natural-resource revenue, according to William Pesek, Bloomberg news columnist. But with funds growing by leaps and bounds, their owners look to make good use of these savings – and in the process could transform global financial markets. The funds together, many based in Asia, could outgrow the entire US economy by...

Globalization Has Left Central Banks Facing a World of Growing Economic Uncertainties

Stephen King March 7, 2007
The macroeconomic policies of the world’s central banks are crucial for economic growth. By changing interest rates or adjusting the money supply, these banks keep inflation at low levels, thereby ensuring stable prices. That stability rests in large part on the predictability of the central banks and these institutions reacting consistently to market information. Recently, however, the data that...

America’s China Worries – Part II

Bruce Stokes February 8, 2007
China has emerged as both mammoth producer and consumer, and that means more countries, including key US allies, depend on China for their economic well-being. The second article in this three-part series on worries besetting China-US relations explores how one nation’s expanding influence over global trade policy diminishes the other’s influence and flexibility. As the US trade imbalance with...

A Global Mission for China and America

Robert Zoellick February 1, 2007
Cooperation and fair play do more to promote mutual and global prosperity than bickering or conflict. Former US Trade Representative Robert Zoellick points out seven concrete steps that China and its economic partners can take to ensure sustainable, responsible growth that minimizes harm both inside of China and outside. Among his recommendations, Zoellick proposes more international private-...