In The News

A Fear That the Cure Could Be Poison

Edmund L. Andrews February 1, 2008
Central banks like the US Federal Reserve raise interest rates to slow an economy and lower them to stimulate it. But economists admit that a complex global economy, with transactions moving at rapid pace, complicates their task. Economist must wait for data to come in long after an economy reacts to events. For example, economists are yet uncertain about whether or not a recession is underway in...

Europe Looks East – Part II

Shada Islam February 1, 2008
The European Union is uneasy, grappling with the effects of globalization on its economy. Public opinion leans toward protectionism and, as Shada Islam suggests in the second of a two-part series, that pushes policymakers to take an aggressive stance against China, a country often associated with the benefits and downside of globalization: In its economic boom, China has benefited from the large...

The Battle for Food, Oil and Water

Gideon Rachman January 30, 2008
Uncertainty pervades the global economy, and the world’s most powerful leaders, bankers and industrialists admit that the complexities of the global financial system present many unknowns. As bankers study the financial connections, politicians examine the challenges confronting the world’s poorest people, including shortages and rising costs of water, food and energy. Population growth...

Europe Looks East – Part I

Shada Islam January 30, 2008
Ever since Marco Polo returned from his voyages with fascinating tales, Europe has been curious about Asia, but distance and the pull of a powerful US economy made it easy to overlook the continent’s economic or strategic importance. As the emerging economies of Asia demonstrate increasing ambition and influence, Europe’s leaders recognize that they must work to build cooperation and full...

Intransigent Face of the Chinese Superpower

Victor Mallet January 25, 2008
There’s danger in “trying to be all things for all people,” as the old saying goes. In many ways, the world has multiple expectations for China, the world’s largest country: engine of economic growth or villain that snatches jobs away; peacemaker or potential aggressor; a developing country with high rates of poverty or traditional culture offering wisdom to the world. As the country’s reputation...

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 II

Xu Sitao January 24, 2008
As anxiety spread about a possible recession hitting the US, stock-indexes went into sharp decline in Europe and Asia. Not surprisingly, worried investors scrutinize the Chinese stock market, as conventional wisdom suggests that China investments are the world’s next over-valued bubble. But analyst Steven Xu points out that the Chinese market could continue to grow, especially this year as China...