In The News

Ukraine After Yanukovych

David R. Cameron February 27, 2014
In November, Ukraine’s President Viktor Yanukovych rejected signing an Association Agreement with the European Union and later negotiated a bailout deal with Russia. Months of protests led to a week of violence and culminated in Yanukovych’s removal from office. The parliament moved swiftly to reorganize: demobilizing the police, firing most of the government ministers, and electing Oleksandr...

Debt Ceiling Redux?

James Leitner and Ian Shapiro February 20, 2014
US Congress raised the artificial debt ceiling to pay bills without a fuss, but the move may galvanize extremists who want to slow government spending, explain James Leitner, president of Falcon Management, and Ian Shapiro, a Yale political science professor. Economists around the globe agree the United States should slow spending and reduce debt, but oppose the crude approach that would...

Putin’s Gas-Fueled Bailout of Ukraine

David R. Cameron January 2, 2014
Ukraine’s government has decided to link its fortunes to Russia, accepting a bailout worth billions after the European Union and the International Monetary Fund offered mere millions combined with tough conditions. Russia will settle a disputed gas bill, reduce the price of future gas deliveries, end some customs controls and import quotas recently imposed and provide financial assistance in...

How to Avert Another Debt-Ceiling Crisis

James Leitner, Ian Shapiro November 15, 2013
The United States borrows 46 cents for every dollar it spends, and despite congressional approval of the expenditures, a few members cling to a self-imposed debt ceiling, insisting that partial default may bring new discipline and spending priorities. “Had the debt ceiling been breached, the damage to the U.S. and world economies could have been measured in trillions of dollars,” write James...

The Perils of Falling Inflation

November 12, 2013
Central banks are national institutions that regulate currency and monetary policy. Typically, they are on watch against excessive inflation which can erode currency values. But low inflation that transforms into deflation may be a bigger problem. “As Japan’s experience shows, deflation is both deeply damaging and hard to escape in weak economies with high debts,” warns the Economist. “Since...

Shut and Down

Nayan Chanda October 25, 2013
Without good national governance, globalization could go belly up, warns Nayan Chanda, editor of YaleGlobal in his column for Businessworld. Over the protests of a few legislators, the US Congress did end a partial government shutdown and also lifted an artificial debt ceiling that allowed borrowing and payments to continue. “By pushing the US to the edge of a default and threatening the global...

Dollar, Default and Bretton Woods III

Mike Dolan October 17, 2013
The US Congress ended its impasse over lifting its debt ceiling, proceeding to pay bills and end the partial government shutdown. The uproar over what should be routine business will have repercussions: “a new world financial order may be emerging – but one possibly more dependent than ever on the United States protecting the dollar's position as dominant reserve currency,” writes Mike Dolan...