In The News

When Banks Don't Trust Banks

Pierre Paulden June 3, 2010
Trust breaks down in banking when investors question whether deposits are safe and when banks worry about loan repayment. Banks only keep a percentage of cash on hand, and a lack of trust can disrupt efficient lending and borrowing with that limited cash. Global banks could have a capital deficit of $1.5 trillion, by some reports, and troubled banks could request additional government assistance...

Wanted: Competent Leaders With Vision To Tackle Global Crises

Jeffrey E. Garten June 3, 2010
Markets around the globe analyze and quantify risk. But governance and politics present too much uncertainty, and investors are increasingly troubled by governments’ inability to address pressing problems and coordinate responses to problems including climate change, massive debt of any one country and other imbalances. Because of countless interconnections through labor, capital, environment,...

Entrepreneurs Wary of China Currency

Emily Maltby May 26, 2010
Any regulatory change creates winners and losers. Because of the strong trade relationship between China and the US, consumers and businesses in either country must adjust to changes from either government – and that includes the possibility of currency revaluation. Companies that export to China will benefit from revaluation, but the many small US businesses that depend on China for consistent...

The Web of Globalization

Nayan Chanda May 24, 2010
Can a country withdraw from globalization, or for that matter, give up democracy in order to benefit from global capital flow? In this column, YaleGlobal editor Nayan Chanda dissects the recent argument offered by Harvard economist Dani Rodrik, who suggests that “economic globalization, political democracy, and the nation-state are mutually irreconcilable.” Crises that disrupt global capital...

Behind the Drama in Europe Lies a Global Crisis

Edmund Conway May 20, 2010
The debt crisis in Greece exposes challenges for lenders and borrowers throughout Europe – testing cooperation and governance on the continent. National governments disagree on many matters ranging from stricter regulations for hedge funds to a proposal requiring approval for national budgets from the European Commission. Politicians – seeking to maintain their hold on power – are wary of...

Fears Intensify That Euro Crisis Could Snowball

Nelson D. Schwartz, Eric Dash May 17, 2010
As Europe strives to bail out Greece and other nations in serious debt, global investors ponder the long-term effects of huge imbalances. The worry is that countries with massive debt like Spain and Portugal can weaken strongholds like Germany and France, reports an article in the New York Times. Economically strong countries that hold problem debt may be forced into restructuring plans even as...

China's Crackdown on Nonprofit Groups Prompts New Fears Among Activists

Keith B. Richburg May 12, 2010
The purpose of a non-profit or non-governmental organization is to act for the public good, with no benefits for individual organizers. But China’s communist government is wary of competition in serving the public good, and recent reports suggest a tightening control over what Keith Richburg of the Washington Post calls a “freewheeling civil society sector.” During the past two decades, thousands...