In The News

The Dollar Joins the Currency Wars

Nouriel Roubini May 6, 2015
Countries want to export more than they import and promote growth and employment. More than 20 central banks around the globe have eased monetary policy, reducing the value of their currencies to make exports more attractive, explains economist Nouriel Roubini for Project Syndicate. He notes that trade and lending imbalances are growing. “The dollar has also risen relative to currencies of...

The Global Economy’s Bizarre Problem: Too Much Money

Matt Phillips April 16, 2015
After global recession struck in 2008, the US injected money into the economy to reduce interest rates and encourage lending. The US effort was described as successful and Japan and Europe soon followed. Overall, the global economy is still sluggish, economic uncertainty lingers. Companies, normally competitive, hesitate to expand or invest in research. Individual and corporate investors compete...

IMF: Currency Shifts Support Global Economic Growth

Anna Yukhananov April 15, 2015
Fast-shifting currency rates, a result of countries injecting more money into their economies, pose volatility and risk, yet could boost the global economy, in particular Japan and Europe, reports the International Monetary Fund. The IMF “cautioned that the economic recovery remains "moderate and uneven," beset by greater uncertainty and a host of risks, including geopolitical tensions...

The Grexit Dilemma: What Would Happen if Greece Leaves the Euro Zone?

Nikolaus Blome, Martin Hesse, Alexander Neubacher, Christian Reiermann, Michael Sauga, Christoph Schult and Alexander Smoltczyk March 10, 2015
Europe cannot agree on more bailouts for Greece, and since electing a new leftist government, Greece is failing to offer a plan on how it will repay its heavy debt, reports an article in Spiegel Online. This opens the possibility of the nation’s exit from the European Union: “Greece's creditors … will not just have to reach agreement with Athens on interest rates and payback periods, but...

Currency Wars Fool Few in the Age of Social Media

Will Hickey March 3, 2015
To push back at economic recession, Japan, the United States, Europe and other governments have printed extra money, lowered interest rates, and taken on new debt. The process is called quantitative easing. Corporations and individuals with extra cash must search for safe havens and investments. The currencies, reduced in value, reduce export costs and drive pools of money to emerging markets....

Grading Abenomics: It’s a C-

Edward J. Lincoln February 10, 2015
Abenomics – economic policies of quantitative easing, fiscal stimulus and structural reforms with deregulation – has been in play for two years since Shinzo Abe once again became prime minister of the world’s third largest economy. Economist and author Edward J. Lincoln suggests that Abenomics is not producing rapid improvements. Quantitative easing has shown results with modest gains in bank...

Global Rate-Cutting Frenzy Could Freeze US Economic Recovery

David Parkinson February 6, 2015
Central banks around the globe, including those in Canada and Australia, continue to reduce interest rates, pump more money into their economies and reduce the value of their currencies to strengthen exports. “Countries appear to be lowering rates at least in part to discourage investors from buying their currency, as they jockey for position with trading partners doing the same,” reports David...