In The News

How to Capitalize the Banks and Save Finance

George Soros October 13, 2008
The US quickly approved devoting at least $700 billion to rescue the nation’s financial system. The steps for recapitalizing banks must be well structured and highly transparent, suggests financier and philanthropist George Soros in the Financial Times. Soros offers specific recommendations: ordering bank supervisors to estimate how much capital is needed to meet required levels and reveal plans...

Global Crisis: How Far to Go? Part II

Manu Bhaskaran October 10, 2008
Speed of transportation and communication that characterize today’s global supply chain requires trust and flow of credit along the many steps: But now consumers worry about the future of their jobs, retailers and manufacturers worry about sales, suppliers worry about orders and lenders clutch to their reserves of cash. In the second article of the YaleGlobal series addressing the repercussions...

Global Crisis: How Far to Go? Part I

Branko Milanovic October 8, 2008
Gripped with mistrust, uncertain about the value of assets like real estate and company stocks, global banks and investors are reluctant to lend and instead cling to cash. This three-part YaleGlobal series examines the implications of the crisis for different parts of the globe. In the first article of the series, economist Branko Milanovic points out what’s most unnerving about the credit crisis...

Today's Capitalism Has Run Its Course

Bashir Goth October 7, 2008
As with politics, extremist and rigid economic policies cannot be sustained. As investor trust wanes and a credit crunch grips the globe, critics lash out. But extremist responses, pure capitalism or pure socialism, are inappropriate, suggests Bashir Goth writing for PostGlobal, moderated by Fareed Zakaria of Newsweek and David Ignatius of the Washington Post. “Just like we need and preach...

The Virus of Greed

Nayan Chanda October 1, 2008
Global commerce depends on an odd combination of desires, the pursuit of profits and a need to please diverse customers. “The search for ever higher returns has driven traders and financiers ever since humans have learned to exchange goods or sought to grow their wealth through investments,” explains Nayan Chanda, editor of YaleGlobal in his regular column for Businessworld. Financiers on Wall...

Can Asia Rescue the Global Economy?

Linda Lim September 29, 2008
During the 1997-98 Asian financial crisis, US financial experts lectured Asians to accept good governance, transparency and free-market outcomes while avoiding drastic government intervention. Asian nations indeed tightened their belts, saving funds and seeking out safe havens for funds, including US Treasury bills. “This inflow of foreign lending conveniently enabled the Bush administration to...

Financial Troubles Humble US

Bob Davis September 29, 2008
A credit crisis combined with immense US government, corporate and personal debt has left the country with a cash-flow problem. The Bush administration and US Congress present a $700 billion government rescue for flailing financial institutions, but that plan depends on someone purchasing US Treasury bills to pay the bill. If foreign investors were to reject such Treasury notes, interest rates...