In The News

Why “Fair Trade” Could Backfire for the US

David Dapice March 26, 2007
As manufacturing jobs continue to slip away from the US, Democrats in control of US Congress could be tempted to apply protectionist measures. But any regulations that attempt to restrict trade could backfire and chase more skilled jobs abroad. Economist David Dapice describes US economic problems – unbalanced budgets, a negative savings rate – as “home grown,” and the solutions require sacrifice...

China Market Plunges, Dow Follows. Now What?

Azam Ahmed March 1, 2007
Events on opposite sides of the globe triggered panic in world financial markets. “The fact that the Chinese market was at the center of the action is a new phenomenon,” writes Azam Ahmed in “The Chicago Tribune.” A clampdown on corruption, speculation and purchasing stock with borrowed funds prompted fears about the government forcibly restraining growth and caused the first sell-off in China....

The New Math of Alternative Energy

Rebecca Smith February 23, 2007
Criticized for years as costly and unsustainable, alternative energy attracting renewed interest amidst a wave of technological developments and rising oil prices. While the US depends heavily on fossil fuels, renewable energy sources such as biomass, wind, geothermal and solar are likely to account for a larger share of the electricity supply in future years. With growing concerns over global...

Inequality and Globalization

Ben Bernanke February 21, 2007
The US strives to provide equal opportunity for all individuals, but does not guarantee equal economic outcomes, explained US Federal Reserve Chairman Ben Bernanke in a recent speech. Still, new competition or inventions like the computer can make some workers’ skills obsolete, warns Benanke, and if the nation does not provide a support system for such workers, thus limiting some of the risks,...

The False Promise of Financial Liberalization

Dani Rodrik January 22, 2007
Free capital flow over the past 15 years was supposed to help developing nations, writes Dani Rodrik, political economy professor with Harvard University, with excess funds moving from wealthy nations to worthy projects around the world, smoothing out boom-and-bust cycles and decreasing corruption. However, Rodrik points out that the developing nations with the most successful economies – China,...

The Other Malaysia: ASEAN and Globalization

Farish A Noor January 18, 2007
An integrated world economy is seen by many as beneficial for the developing world, but recent events in Southeast Asia cause some to question this optimism. After an announcement to impose controls on foreign capital in Thailand led to a 14 percent drop in Bangkok’s stock market, the newly-installed government was forced to retract its statement in a desperate effort to avoid a repeat of the...

Europe Is Giving Global Economy a Surprise Boost Amid US Lull

Marcus Walker December 21, 2006
Typically, when the US economy slows, Europe follows. But because of rising exports, Europeans demonstrate a renewed economic confidence, as demonstrated by more jobs, investment and spending. Modest economic growth is spreading throughout the continent known for heavy regulation of labor, trade and investment as well as generous social benefits. With exports leading the growth, European...