In The News

Chinese Rating Agency Strips Western Nations of AAA Status

Ambrose Evans-Pritchard July 13, 2010
Credit agencies assign ratings based on the risk of timely payments, and some US agencies have been faulted for underestimating the risk of major Western corporations. Now, China’s Dagong Global Credit Rating Co. demonstrate wariness about debt held by developed nations as well as how western credit agencies like Standard & Poor’s, Moody’s or Fitch evaluate that debt. Dagong emphasizes “...

Worry on the Jobs Front

Nayan Chanda July 12, 2010
Global economic recession severely curtailed hiring in the developed nations – and economists debate whether the slowdown is temporary or a “new normal,” explains Nayan Chanda, editor of YaleGlobal Online, writing for the Times of India. Some analysts blame outsourcing, low-cost labor and minimal regulations in emerging economies for high unemployment rates. Yet decisions of policymakers,...

Forget India, Outsource to Arkansas

Jennifer Alsever July 8, 2010
With a national unemployment rate approaching 10 percent, relatively high for the US, biotech and IT technology firms eye low-cost labor rural communities in states like Arkansas, Missouri and Minnesota. Dubbed “rural outsourcing” by this CNN Money article, the work entails providing IT support or customizing software code. “For some companies, the thought of outsourcing work to countries with...

Debt and Unemployment: Is Global Capitalism Responsible? – Part II

David Dapice April 26, 2010
In declaring an end to recession, economists fall into two camps: One side, including economists with the Obama administration, maintains high rates of unemployment are cyclical and jobs will return soon; others contend that the US economy confronts fundamental restructuring, with massive unemployment lingering for years. This two-part YaleGlobal series examines economic debates over debt and...

For India, US Health Care a Sea of Opportunity

Taylor Barnes April 26, 2010
India’s outsourcers are preparing to develop their next business sector from the United State’s health care reform by covering its administrative and technological needs. A demand for lower administrative expenses and treatment of more patients for every dollar requires low cost labor that comes from outsourcing. Since there are no regulations limiting personal medical data from leaving the US,...

Debt and Unemployment: Is Global Capitalism Responsible? – Part I

Jeffrey E. Garten April 23, 2010
Global capital markets have been footloose and fancy free since the 1980s, boosted by rapid globalization in transportation, communication and technology industries. Prowling for profits, investors leap boundaries in an instant, manipulating growth, jobs and industries. In this series, two economists explore global capitalism’s growing reach that defies even the world’s greatest economic power....

Beijing Is Key to Creating More U.S. Jobs

C. Fred Bergsten April 22, 2010
By artificially setting the price of its currency, China is robbing the United States of jobs and building up an unprecedented trade surplus. Former Treasury official Bergsten says that currency manipulation is a form of protectionism and the US and global institutions need to respond because it is a problem that affects economies around the world. He calls for a three-pronged strategy: the US...