In The News

Kuroda Plans Bond Binge for Bank of Japan

Jun Hongo April 8, 2013
Incremental measures have not been enough to lift a stagnant Japanese economy. The central bank announced plans for ending Japan’s deflation – adding to the money supply by expanding purchases of government bonds and allowing purchase of riskier assets, reports Jun Hongo for the Japan Times. The strategy could double Japan’s monetary base and “will target longer-term debt, including JGBs with...

The EU as Last-Ditch Escape Artist

Jonathan Fenby April 1, 2013
Europe plays a dangerous game by tackling debt crises country by country. The latest economy to implode is a small nation that gained a reputation as an offshore banking center: Cypriot banks invested in Greek bonds and, after Greece imploded, required rescue – which comes at a cost. With deposits in Cypriot banks insured up to €100,000, holders of larger deposits may lose half their savings....

Moscow’s Mysterious Move on Cyprus

Owen Matthews March 28, 2013
Russian deposits may account for about one third of Cypriot bank accounts worth more than €100,000, which could be frozen and taxed by up to 25 percent as part of a EU bailout deal. Russian President Vladmir Putin has denounced such methods for rescuing the Cypriot economy and “many non-Russian commentators agree with Putin that raiding private savings risks undermining confidence in Europe’s...

Euro Crisis Poses Grave Dangers to EU Unity

Spiegel Staff March 26, 2013
During a banking crisis, political leaders try to maintain calm to prevent panic and a run on vulnerable banks that can’t possibly return deposits to customers all at once. But a bailout for EU member Cyprus could fracture the calm by even suggesting new precedents, especially early proposals to tap into all bank depositors’ savings accounts and ignore guaranteed protections on holdings up to €...

World Markets Roiled as Cyprus Bailout Deal Stalls

Eric Reguly March 18, 2013
Cyprus, with a population just over 1 million, is posing big challenges to global financial markets. The government failed to pass a €10-billion package that would have taxed bank deposits to pay for the rescue – 6.75 percent for deposits less than €100,000, 9.9 percent for those with more. “None of the euro zone’s sovereign and bank bailouts, from Ireland to Greece, has insisted that bank...

The Financial Crash Will Not Bring About “Globalization on Steroids”

Joshua Kurlantzick March 11, 2013
Despite the international outlook of the leaders of the world’s two biggest economies – the US and China – Joshua Kurlantzick argues that there is a new trend of deglobalization. The precarious state of the world economy is contributing to the prominence of national boundaries in shaping economic policies. Foreign investment has dried up as national legislatures reject takeovers or funding for...

UK Will Find EU Bank Bonus Cap Hard to Lift

John O'Donnell March 6, 2013
Europeans are impatient with the pace of economic recovery. The European Union surprised the financial industry by imposing a cap on bonuses for banks’ senior managers and traders, and the mood was also reflected by Swiss voters who approved of shareholders having a say on board and executive salaries. The plan is to reduce excessive pay and end the practice of rewards for crisis. How many...