In The News

Shock Absorber: US Retools Economy, Curbing Thirst for Oil

Justin Lahart August 18, 2008
As demand for oil surged and the world contended fleetingly with record-high prices, the US quickly adjusted: Companies develop new strategies to lower energy costs, and consumers turn to energy-efficient products. As the world’s largest user of energy products, the US can drive prices. “Whether this newfound energy austerity alters the fabric of American life in a lasting way will depend partly...

The Oil Price: Nothing to Smile About

August 12, 2008
The rising price of oil throughout summer 2008 resulted in higher prices for most other products, especially food. With a dip in the price of oil, some analysts expect central banks to hold off from lifting interest rates, maintaining less expensive credit and money for business. But that cheap credit can lead to risky speculation and bubbles, some economists argue. Current interest “rates now...

China “Is Fueling War In Darfur”

Hilary Andersson August 1, 2008
For years, the United Nations, suspecting Chinese involvement in Sudan, has searched for military trucks made in Chinese factories and imported directly to Sudan. Preliminary investigations by BBC located some trucks, including one with a Chinese anti-aircraft gun inside. BBC also reports that Chinese fighter jets have been used for missions in the region. China's official stance is that it...

Fuel Subsidies for Some Make Oil More Expensive for All

Keith Bradsher July 28, 2008
Governments try to help out their citizens by subsidizing fuel. But such subsidies also encourage growth in the oil markets and remove incentives to conserve. “The oil company BP, known for thorough statistical analysis of energy markets, estimates that countries with subsidies accounted for 96 percent of the world's increase in oil use last year – growth that has helped drive prices to...

Time to Cut the Knot

July 9, 2008
Ideally, the US would possess its own energy sources, thus ensuring energy independence and stability. Unfortunately, a dependence on fossil fuels leads to drilling around pristine beaches and using technologies that exacerbate global warming. During a presidential- election year, politicians are less willing to take a firm stance on environmental protection – and pursue any short-term measures...

Chinese Checkers

Nayan Chanda July 7, 2008
Producer and consumer countries can’t expect to escape unscathed if economic problems strike one or the other as a maze of complicated challenges confront the global economy: The subprime mortgage crisis battered global banks; businesses have trouble finding credit; consumer spending has slowed; and energy prices are on the rise. Giant sovereign wealth funds based in Asia and the Middle East came...

Oil Currency Hypocrisy

Kenneth Rogoff June 17, 2008
The internet and instant communication quickly expose inconsistent policies, even in the most technical of areas. An example of such inconsistency, according to economist Kenneth Rogoff, is US policy on currency exchange rates. The US simultaneously criticizes Asian countries for manipulating currencies, preventing them from appreciating faster against the dollar, while supporting elaborate...