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,...

A Greek Tragedy Haunts the World – Part II

Bruce Stokes March 3, 2010
The financial crisis in Greece is not only reverberating around Europe but is creating a difficult set of circumstances for the US, necessitating closer American involvement, according to journalist Bruce Stokes. The US has long supported European unity but the crisis is distracting Europeans from pressing concerns in Afghanistan and elsewhere, opening a new avenue for Russian meddling, and...

The Currency Albatross

Nayan Chanda March 1, 2010
Long-term political stability in China and the political future of the Obama administration both rest on resolving the economic crisis. But these goals may be at odds with one another as seen in the ongoing debate over China's currency, which is estimated to be under-valued by 25-40 percent. The legitimacy of the Chinese Communist Party is in part predicated on economic prosperity, something...

A Greek Tragedy Haunts the World – Part I

Jonathan Fenby March 1, 2010
The unfolding tragedy in Greece again demonstrates the interdependence of our integrated world – affecting countries near and far. In part I of this two part series, author Jonathan Fenby shows how Greece’s sorry state of affairs has thrown the European project into question. Indeed, Greece’s faltering has exposed some of the fundamental flaws in the EU’s conception. It could never be a true...

The World Economy Has No Easy Way Out Of the Mire

Martin Wolf February 24, 2010
Central banks around the world helped to avert disaster through significant monetary stimulus in the aftermath of the financial meltdown. This stimulus has also aided the rebound in financial markets since the lows of March 2009. But, Martin Wolf rightly asks, what will happen once that stimulus is removed? Or, in other words, will the exit strategy be successful? For Wolf, success would be a...

Globalization in Trouble – Part II

David Dapice February 15, 2010
Globalization appears to have weathered the storm of the financial crisis, but it may be poised for a tumble. According to economist David Dapice, many developing nations, whose economies often depend heavily on exports, cannot sustain themselves without the willing consumption of their goods by the developed world. But with a pullback in aggregated demand among developed nations, the prognosis...