In The News

Bloomberg: Global Economy Feels Lehman Fallout 10 Years Later

Simon Kennedy and Sam Dodge September 17, 2018
Investments in subprime mortgages and the collapse of Lehman Brothers contributed to the 2008 financial crisis with global economic and political fallout due to stalled growth and increased government intervention. The consequences linger today worldwide with increased debt, wage stagnation, widening inequality and lingering unemployment in some nations. “The deepest international recession since...

China-US Focus: US Miscalculation on a Chinese Debt Crisis

Vasilis Trigkas and Qian Feng August 30, 2018
US leaders may misunderstand Chinese economic fundamentals by assuming that a trade war will trigger a debt crisis that threatens China’s government. Vasilis Trigkas and Qian Feng of Tsinghua University point to three China-specific economic characteristics that could prevent an economic crash. The Chinese Communist Party controls the nation’s information infrastructure which gives regulators...

Wall Street Journal: Turkish Lira Crisis Hammers Emerging Markets

Georgi Kantchev and Yeliz Candemir August 14, 2018
Some emerging economies relied too much on low-cost borrowing available after major economies increased liquidity after the 2008 debt crisis. Value of the Turkish lira is falling, and the country struggles to boost liquidity by reducing its banks’ reserve requirements while resisting an increase in its own interest rates. “Turkey has become a primary cause for concerns on global financial markets...

Financial Times: Turkish Lira Plunges as Trump Threatens Tariffs

Ayla Jean Yackley and Demetri Sevastopulo August 10, 2018
Turkey’s currency is falling against the dollar even as the US president threatens more tariffs – 20 percent on aluminum and 50 percent on steel. Turkey’s president calls the actions “economic war.” Turkey, like the United States, is among the top 10 countries that produce steel. The lira’s fall “ricocheted into Turkey’s bond market, sending the yield on the local currency 10-year bond above 20...

Asia Sentinel: China’s Belt-Road Initiative – Too Good?

Salman Rafi Sheikh July 18, 2018
The Belt and Road Initiative, China’s far-reaching development plan, faces new scrutiny. Countries that have signed on for roads, ports, dams and other infrastructure investment worry about costs and financing, and “China’s attempts at political and economic manipulation of smaller countries are becoming increasingly visible, making client countries suspicious as well,” explains Salman Rafi...

Wall Street Journal: Emerging-Markets Rout Boosts Contagion Fears

Ira Iosebashvili, Ben Eisen and Amrith Ramkumar June 15, 2018
Stocks in emerging economies around the world like Brazil, Turkey and Indonesia have fallen dramatically in recent weeks – mostly driven by the strong US dollar and high US bond yields. Currencies and investments in emerging market bonds also remain low despite global economic growth. Countries like Argentina, Turkey, and Italy accumulated debt when interest rates were at record lows and are now...

Spiegel: Fixing the Euro

Henrik Enderlein June 6, 2018
The European Union has a lingering problem with some members taking on excessive debt. In turn, economic woes fuel resentment against more disciplined members, suggesting that some loans could go unpaid. “The danger emanating from the current, out-of-control situation doesn't just come from the possible return of the euro crisis and its far-reaching consequences for growth and prosperity,”...