In The News

Grexit Grumblings: Germany Open to Possible Greek Eurozone Exit

Nikolaus Blome, Giorgos Christides, Christian Reiermann and Gregor Peter Schmitz January 6, 2015
The eurozone has economies in flux. Lithuania celebrates entry while Greece ponders an exit. Greeks vote in parliamentary elections on January 25 and many resent austerity measures imposed by Germany and other neighbors, explains an article in Spiegel Online: “the North-South conflict's focus is the German-designed austerity and reform program that all crisis countries have had to adopt in...

Central Asia Hurting as Russia’s Ruble Sinks

David Trilling and Timur Toktonaliev November 6, 2014
As Russia’s ruble declines in response to western imposed sanctions, Central Asian countries face rising inflation. The economies of countries like Kyrgyzstan, Tajikistan and Uzbekistan rely on remittances from workers in Russia, notes an article originally published by EurasiaNet. As the value of these remittances decreases, prices of imports skyrocket, often by double digits. Turkmenistan,...

Debate Rages on Quantitative Easing’s Effect on Inequality

Chris Giles October 28, 2014
Since the global debt crisis of 2008, central banks in the US, Japan and the UK have embraced policies of quantitative easing, designed to expand currency supplies and keep interest rates low to encourage economic and job growth. But conservatives in the US and liberals in the UK claim the policies have led to rising income inequality for the advanced economies, reports Chris Giles for Financial...

Currency Wars Evolve With Goal of Avoiding Deflation

David Goodman, Lucy Meakin and Ye Xie October 22, 2014
Countries once worried about inflation or rising prices now fret about deflation and adjust currencies accordingly, reducing costs of their exports relative to other economies. Trouble is, many nations are jumping in to this game, leading to stagnant wages and job growth. Global consumers anticipate price declines and delay spending. “Brazil Finance Minister Guido Mantega popularized the term ‘...

Gloomy Outlook for Ghana Where Gold Does Not Shine Anymore

Vikram Mansharamani October 2, 2014
A country’s fortunes can rise and fall quickly. Ghana was hailed just two years ago as the world’s fastest growing economy, but now struggles with currency devaluation, poor infrastructure and an entrenched bureaucracy, explains Vikram Mansharamani, author, global equity investor and Yale lecturer. Confidence is falling – on stark display after the Ghana World Cup team refused to play without an...

US-China Strategic and Economic Dialogue

July 14, 2014
Tensions run high between the world’s two largest economies over trade and currency, cyberhacking, and maritime disputes in the East and South China seas. Top officials of the United States and China meet annually to review economic, financial and security concerns, and the most recent US-China Strategic and Economic Dialogue was held July 9 and 10. “The S&ED is now the main event in the U.S...

Renminbi Undervalued? Think Again

Farok J. Contractor May 8, 2014
The Chinese currency may be under-valued, but not by much. The renminbi has appreciated by 35 percent since 2005 amid persistent inflation in China’s manufacturing sector, and further appreciation is unlikely, reports Farok J. Contractor, management professor. The semi-annual US Treasury report describes the currency as “significantly undervalued,” but does not declare China a “currency...