In The News

Turks Enjoy a Little Schadenfreude at EU's Expense

Peter Kenyon December 14, 2011
Many Turks are now thanking their lucky stars that Europe delayed Turkey’s accession into the European Union. Turkey, associate member of the European Economic Community since 1959, applied for full membership to the EEC in 1987 and was recognized as an EU candidate in 1999, undergoing many reforms along the way. The insult felt by Turkey over delay was keen after rival Greece’s accession in 2000...

From Brussels to Durban: Debt and Climate Crises Spotlight Free Riders

Scott Barrett December 9, 2011
Europe’s rapid response to the debt crisis may have overshadowed the long-planned negotiations on climate change in Durban, but the contrast throws light on the problem of global governance, explains economist Scott Barrett. Both crises demonstrate the limits of collective action in the face of known dangers. In Europe, poor fiscal discipline by any euro member threatened other countries, he...

Britain Becomes Even More Wary of Unity

Anthony Faiola December 5, 2011
The United Kingdom moved cautiously on EU integration, retaining the pound and rejecting the euro as common currency. By opting out of the euro, Britain maintained the ability to print money and set interest rates. “Yet, as a member of the bloc, Britain has agreed to bind itself to regional regulations, employment laws and legal rulings, in exchange for a stronger voice in European affairs and...

Central Banks' Action Hints At US Fears

Geoffrey T. Smith December 2, 2011
The world’s largest central banks, led by the US Federal Reserve, have united to ease the flow of money and bank loans in the global system. The Wall Street Journal’s Geoffrey Smith compares the defensive measures tried in war, pointing out many analysts worry about what comes next and whether the defenses will hold. Perhaps most notable is the support from the US Federal Reserve. US taxpayers...

America's Other 87 Deficits

Stephen S. Roach November 25, 2011
The US has trade deficits with 88 nations, and in 2010, China’s share was about 40 percent. The trade deficits are a consequence of the country’s own spending behavior – with reduced saving by individuals, business and the government – explains Stephen Roach of Yale University. As master of the world’s reserve currency, “the US borrowed surplus savings from abroad on very attractive terms,...

Europe Short on Cash as Bond Fears Deepen

Stefan Kaiser November 23, 2011
Unlike politicians, global investors are strict taskmasters. Banks are warning that European governments can no longer take the capital markets for granted in financing public projects, writes Stefan Kaiser for Spiegel Online. His article describes Germany as a safe haven, but shortly after the article was posted, a German auction sold only 65 percent of €6 billion in 10-year bonds. Investors are...

Painful Euro Crisis and Lessons for the World – Part II

Joergen Oerstroem Moeller November 18, 2011
While overspending and giving citizens a false sense of prosperity, leaders of wealthy governments anticipated future economic growth to resolve all imbalances. This YaleGlobal series analyzes how the debt crisis unfolding in Europe may offer lessons for the rest of globe. A relatively small group of banks and investors control substantial global revenue, explains researcher Joergen Oerstroem...