In The News

Decoupling Demystified

Nayan Chanda February 8, 2008
Reality always trumps theory. Nayan Chanda points out that this was seen when aftershocks from the American stockmarket meltdown put to rest the theory of ‘decoupling’. The stockmarket jitters that ran from Tokyo to Shanghai to Mumbai shows that Asian growth is very much linked, further proving that in a globalized world, you can run, but cannot hide. – YaleGlobal

Buyers, Not Savers, Caused America’s Deficit

Richard Duncan February 5, 2008
Financial analysts scrutinize Alan Greenspan’s 2007 autobiography, “The Age of Turbulence,” for any clues about the current economic downturn. Analyst and author Richard Duncan takes issue with the chapter in Greenspan’s book on current accounts and debt, noting that that the former chairman of the US Federal Reserve argues, “High savings and unattractive investments at home, occurring at a time...

Next Stop Asia

January 24, 2008
With Asia’s emerging economies posting spectacular growth, Asian investors had hoped that a US recession would cause little concern for their economies. But then global stock markets took a big tumble. World markets are connected, but that does not mean a recession in one part of the world will necessarily devastate another part. Some Asian markets are more vulnerable than others, reminds this...

Globalization and the Markets – Part I

David Dapice January 22, 2008
Stock-market indexes have tumbled like dominos around the globe, exposing vulnerability of intricate economic connections. A crisis in one nation – and the panic – can quickly bounce from one country to the next. A major cause behind the stock-market plunges the world over are US financial instruments designed to spread and protect risk by including all manner of home mortgages, explains...

World Rides to Wall Street's Rescue

David Enrich January 17, 2008
Nations with hefty savings accounts, including Singapore and Saudi Arabia, are devoting billions to rescuing US banks in trouble, a result of the sub-prime mortgage crisis. “After flooding the world with capital that fed both economic growth and excess, battered U.S. financial institutions now are turning to countries and companies that not so long ago were suffering through their own disasters...

The Globalization Backlash: Is America Slouching Towards Protectionism?

Gabor Steingart January 11, 2008
During their lifetimes, American adults have watched manufacturing jobs move from northern states to the south and then overseas, as auto, textile and now computer manufacturers chase after workers willing to work for low wages. Toshiba shifted a plant from Tennessee to Mexico, where workers assemble computers with parts from China for $8 per day. “Americans wouldn't have such a hard time...

The Invisible Hand of Globalization

Susan Froetschel January 3, 2008
Despite exponentially-advancing understanding of economic forces over the 20th century, Adam Smith’s invisible hand continues to elude. In his recently published book none other than former Chairman of the US Federal Reserve Alan Greenspan essentially throws up his hands. Every time a financial crisis hits the world, like the current turmoil caused by sub-prime mortgage lending in the US, calls...