In The News

How to Stop a Second Great Depression

George Soros September 30, 2011
Confidence in the global economy is slipping, as wealthy nations fail to control debt and prevent growing fears over defaults and government bonds once assumed to be safe. In an essay for the Financial Times, financier and philanthropist George Soros urges three bold steps for Europe to allow orderly default by Greece, if necessary, and keep the global markets calm: create a common treasury for...

The Four Horsemen of Economics

Stewart Wallis September 28, 2011
Humans are not necessarily stuck with the unsustainable, unstable economic constructs they have created. Political systems can shape local and global economies, either deliberately or by default. Stewart Wallis, executive director of the New Economics Foundation, urges nations to work in concert to address crises that promise to arise with greater frequency and severity – whether extreme weather...

Going... Going... Greece on the Brink

Maria Margaronis September 22, 2011
The social turmoil, bitterness and political infighting that accompany Greece’s debt crisis could offer a preview for other nations that fail to practice fiscal discipline. In exchange for loans, Greece’s creditors demand that the government cut spending, lay off public employees, reduce entitlements and raise taxes. A series of quick fixes and delays have given savviest creditors time to prepare...

China Plays Hard Ball

François Godement September 19, 2011
European nations deep in debt are playing a dangerous game with China by teasing global markets. Neither borrowers nor would-be rescuers offer transparency about how much European debt China holds. Sensing that China is increasingly the only available willing buyer, leaders like Wen Jiabao allude to conditional lending, urging an end to anti-dumping charges or allowing asset sales that benefit...

Swiss Franc Decision Should Be a Lesson for Euro Critics

Charles Hawley September 9, 2011
European economies, strong and weak, have their doubts about the continent’s common currency. Strong exporters like Germany are weary of bailing out spendthrifts, and spenders like Italy and Greece resent austerity measures imposed on them by their euro partners. Developing rescue packages is an ongoing challenge. But like it or not, Europe realized Tuesday that the euro and other European...

Stopping the Vicious Cycle

Nayan Chanda August 29, 2011
In the face of economic crisis and massive imbalances, the leaders of the world’s large economies, the Group of 20 or G-20, are paralyzed. “The weakness of western leaders is compounded by an abject absence of ideas about how to rescue the world economy,” writes Nayan Chanda, YaleGlobal’s editor, in his regular column for Businessworld. “Equally striking has been the silence of the BRICS – Brazil...

The Eurozone Fights for Survival – Part II

Joergen Oerstroem Moeller August 18, 2011
Lenders are in the habit of putting profits over borrowers’ interests. Many players in the financial markets – the credit markets, banks, economists and analysts – took little notice as small eurozone economies like Greece amassed huge debts based on fiscal records of strong partners like Germany. Massive lending led to crisis, and an abrupt halt, hiking interest rates, aggravated the...