In The News

Painful Euro Crisis and Lessons for the World – Part II

Joergen Oerstroem Moeller November 18, 2011
While overspending and giving citizens a false sense of prosperity, leaders of wealthy governments anticipated future economic growth to resolve all imbalances. This YaleGlobal series analyzes how the debt crisis unfolding in Europe may offer lessons for the rest of globe. A relatively small group of banks and investors control substantial global revenue, explains researcher Joergen Oerstroem...

Cross-Border Banking in the Balance

Erik Berglof November 16, 2011
Cross-border banking should not become a casualty of the clean-up act required for the eurozone crisis, argues Erik Berglof, the Chief Economist of the European Bank for Reconstruction and Development. The gains from financial integration in Europe have been great, particularly through the actions of foreign subsidiaries of large European banks in emerging central and eastern European countries,...

Europe Close to Creating “Budget Tsar”

Joshua Chaffin November 15, 2011
With European countries struggling to get a control on debt, the European Commission is taking steps to appoint one person responsible for scrutinizing finances. Rival commissioners could not over-ride disciplinary measures imposed by the commissioner for economics and monetary affairs on nations that overspend. “Commission officials argue that the new changes are necessary to prevent national...

Why Italy’s Days in the Eurozone May Be Numbered

Nouriel Roubini November 11, 2011
Italy is the world’s eighth largest economy and the government is now obliged to borrow at interest rates of 7 percent for daily operations. Italians have approved austerity reforms, but the nation’s €1,900 billion in debt may require restructuring, sending shudders among banks and investors. Restructuring won’t trigger economic growth, and reviving Italy’s credibility could require at least a...

“Playing Baseball Without a Bat”

Thomas. L. Friedman November 9, 2011
In an interview with YaleGlobal editor Nayan Chanda, Thomas. L. Friedman talks about his book "That Used to Be Us: How America Fell Behind in the World It Invented and How We Can Come Back," co-written with Michael Mandelbaum. He explains the reasons for the slow decline of the United States, especially its failure to adapt to the hyper-connected world it helped to create, four...

Denying Imbalances, G20 Risks Chaos – Part III

Jonathan Fenby November 9, 2011
Mounds of unsustainable debt in wealthy nations threaten the global economy, and many of these nations must keep borrowing in demanding global markets for daily operations. The G20 summit in France, a meeting of the world’s most powerful economies, failed to develop a strategy to ease spending, protect bondholders and lift confidence among consumers and investors. The G20’s failure will have...

The Popular Mandate

Nayan Chanda November 8, 2011
A suggestion by the Greek prime minister for a referendum on a proposed European bailout – negotiated by European leaders to continue lending to Greece while erasing half the nation’s debt –was bashed by financial markets and Western leaders. Analysts anticipated an angry Greek electorate to reject the deal, and the prime minister backed down. "Athens offers a valuable lesson in...