In The News

Revaluation: A Double-Edged Sword for China

Xu Haihui July 21, 2005
When the Chinese central bank decided today to abandon its policy of pegging the renminbi to the dollar, it took the first step towards a truly floating currency. Revaluation will have a different impact on different segments of the Chinese economy, its influence determined by both the extent to which a given segment is dependent on foreign capital, and by its quality and efficiency. The textile...

America’s Truth Deficit

William Greider July 18, 2005
With countless jobs moving overseas and a growing trade deficit amounting to 25 percent of GDP, the United States today is losing ground in global competition and becoming more dependent on its strategic rivals. Leaders in politics, business, finance, and the news media have long been reluctant to discuss these problems. Instead they have obscured the trade problems with debates about currency...

Japan's Beneficent Potential

Makoto Taniguchi June 14, 2005
Regional cooperation is essential to the development of the Asian economy, but discord among the region's top three actors – Japan, China, and South Korea – is hindering the process of integration. The lack of a common historical perspective has led to a political impasse between Japan and both China and South Korea, making it difficult to foster mutual understanding. Former ambassador...

Nationalism Ignites EU Rebellion

Daniel Williams June 5, 2005
Last week's French and Dutch referendums on the EU constitution are believed to be popular expressions of unease over the pace and nature of European integration. While most Europeans have benefited from 50 years of developments that have brought about a common currency, convenient travel and easier trade, many citizens are anxious about future unification measures that threaten to impinge...

Euro Stabilizes After Dutch No Vote

Steve Johnson June 2, 2005
When the French, and now the Dutch, voted against the new EU constitution, the fate of the euro appeared precarious. Speculation ensued as to the long-term viability of the euro. "Without political integration, the eurozone is a roofless house that becomes increasingly uncomfortable. Many inhabitants will want to leave the house sooner or later," said economist Paul De Grauwe. The...

Argentina or the "Principles"?

Ernesto Zedillo May 10, 2005
Financial instability in emerging market countries has been a major concern for the international financial system. Argentina's debt crisis, during which the country's entire financial sector collapsed, triggered serious discussions on how to improve the world's response mechanisms in times of crises. After several years of negotiation and consultation, an association of private...

Death by a Thousand Cuts

Immanuel Wallerstein May 9, 2005
The United States has long been the major power influencing Latin American politics and business, encouraging currency ties, controlling natural resources, and at times even helping to depose governments it no longer supports. But recently several small "cuts," as Imanuel Wallerstein writes, have undermined US control in the region. One example is the ouster of Ecuadorian President...