In The News

Reuters: Asian Markets Uneasy, Longer US Debt Yields Verge on 3%

Vidya Ranganathan February 9, 2018
The US Congress allowed a brief government shutdown before approving a two-year spending bill, and the US Treasury Department is on track to borrow almost $1 trillion this fiscal year, almost double from the previous year. The US is increasing spending after approving tax cuts that so far are reducing revenue. Asian markets are unnerved by the potential of rising interest rates and long-term US...

Bloomberg: Japan Buries Cherished Economic Ideas

Noah Smith August 9, 2017
Japan’s economy defies traditional economic theories. High debt and full employment have not led to inflation; the Bank of Japan is resigned that policies won’t achieve a 2 percent inflation target. “Basic econ theory says that as the labor market gets tighter, competition should push up wages, which will then boost consumer prices via increased demand and higher costs,” writes Noah Smith for...

Barron’s: Asia’s Biggest Central Banks Diverge

William Pesek March 21, 2017
The People’s Bank of China, in line with the US Federal Reserve’s March 15th decision, recently increased some interest rates while the Bank of Japan responded by maintaining its negative interest rate target. Divergence in monetary policy “adds a new element of market uncertainty into 2017,” writes William Pesek for Barron’s. The governor of the People’s Bank of China, Zhou Xiaochuan, instituted...

Central Asia Hurting as Russia’s Ruble Sinks

David Trilling and Timur Toktonaliev November 6, 2014
As Russia’s ruble declines in response to western imposed sanctions, Central Asian countries face rising inflation. The economies of countries like Kyrgyzstan, Tajikistan and Uzbekistan rely on remittances from workers in Russia, notes an article originally published by EurasiaNet. As the value of these remittances decreases, prices of imports skyrocket, often by double digits. Turkmenistan,...

Global Sell-off Shows Fed Reach Beyond the US

Nathaniel Popper June 21, 2013
The activities of world’s central banks are intertwined in complex ways that are more apparent. The Federal Reserve, the US central bank, reviews international variables before setting policy and recognizes that its actions affect growth and inflation in foreign economies. Overseeing the largest economy while actively intervening on economic matters, the Federal Reserve is in the position that...

Instead of the State, Globalization Has Withered

Julie Novak April 19, 2013
Nations are keen to control globalization, welcoming the best ideas and talent and keeping away the problems, a task much easier said than done. Most nations appreciate a large choice in trendy products, hard-working and innovative immigrants, and a reputation for being cosmopolitan. The 2008 financial crisis enlarged rather than destroy government, fueled by fiscal stimulus spending, maintains...

The EU as Last-Ditch Escape Artist

Jonathan Fenby April 1, 2013
Europe plays a dangerous game by tackling debt crises country by country. The latest economy to implode is a small nation that gained a reputation as an offshore banking center: Cypriot banks invested in Greek bonds and, after Greece imploded, required rescue – which comes at a cost. With deposits in Cypriot banks insured up to €100,000, holders of larger deposits may lose half their savings....