In The News

Economic Policy Turned Inside Out

Stephen S. Roach May 4, 2015
Unsustainable economic imbalances combined with financial engineering to reduce interest rates and currency values, could threaten the global economy, suggests economist Stephen S. Roach, a senior fellow at Yale University’s Jackson Institute of Global Affairs. The essay focuses on Japan’s struggle since 1985 to revive its economy by relying on monetary policy. In 2002, the US Federal Reserve...

European Union Divided Over Greek Bailout

Chris Miller April 16, 2015
Fervent democracy at the national level is hampering monetary policymaking for the broader European Union in bringing quick end to the Greek debt crisis, explains Chris Miller, a Yale doctoral candidate and research associate at the Hoover Institution. Greek voters resent austerity measures imposed by the rest of Europe led by Germany, yet polls show that two thirds prefer staying in the eurozone...

Oil Price Fall Leaves Gulf States With Difficult Reform Choices

Simeon Kerr February 4, 2015
Subsidies distort markets, and because consumers take the low prices for granted, governments struggle to restore fair-market prices. States that rely heavily on oil revenues struggle over whether to dip into reserves to continue subsidies or enact unwelcome reforms. Stability for many oil-rich states in the Persian Gulf hinges on oil revenues. The price of oil has fallen by half since summer...

European Union Tries Rebooting the Economy

Joergen Oerstroem Moeller January 27, 2015
The European Central Bank announced dramatic expansion of its monetary stimulus plan to purchase asset-backed securities and bonds through September 2016 for a total of at least €1 trillion On the surface, the move has similarities to US stimulus measures in play since late 2008, with the US Federal Reserve purchasing billions of dollars in mortgage-backed securities, bank debt and treasury notes...

Pull of Global Economy Increases Latin America-Africa Engagement

Manuel Orozco and Julia Yansura January 26, 2015
Africa and Latin America are opening new trade and diplomatic relations, particularly in four key countries of Brazil, Mexico, Cuba and South Africa. Compared with their exports to the northern hemisphere, the exchange of goods between Latin American and African countries remains small, around 3 percent. However, trade between the two continents grew 75 percent between 2005 and 2012, and new...

Chinese Submarine Docking in Sri Lanka “Inimical” to India’s Interests: Government

Sachin Parashar November 10, 2014
Sri Lanka has allowed a Chinese submarine to dock at its Colombo port days after the visit of Vietnam’s prime minister to India. This follows another Chinese submarine docking in Sri Lanka in September, reports Sachin Parashar for the Times of India. India views the docking as a violation of a 1987 agreement declaring that “ports in Sri Lanka will not be made available for military use by any...

What If Britain Left the EU?

Michael White, Larry Elliott and Charlotte Higgins November 7, 2014
If the United Kingdom left the European Union, the country would face additional political and social problems including internal divisions and popular disillusionment. The move would also destabilize the EU overall, aggravating tensions between France and Germany and generating pessimism that could recreate the power-feuding Europe of the early-20th century. Some politicians in Britain use EU...