In The News

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...

Kuroda Plans Bond Binge for Bank of Japan

Jun Hongo April 8, 2013
Incremental measures have not been enough to lift a stagnant Japanese economy. The central bank announced plans for ending Japan’s deflation – adding to the money supply by expanding purchases of government bonds and allowing purchase of riskier assets, reports Jun Hongo for the Japan Times. The strategy could double Japan’s monetary base and “will target longer-term debt, including JGBs with...

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....

College Grads May Be Stuck in Low-Skill Jobs

Ben Casselman March 27, 2013
The US economy could be in a long-term structural bind, failing to provide enough work for its educated young adults. Many economists had suggested that underemployment would be a temporary problem. But research by a team of Canadian economists suggests that a high-tech economy has reduced need for workers over the long term. Other economists suggest the findings are speculation, reports Ben...

The Rise of the Robots

Robert Skidelsky February 21, 2013
Automation and technology, along with a do-it-yourself culture, contribute to greater productivity and fewer jobs, with some developments more disruptive for labor and select industries than others. Countries, particularly the most developed, must consider the prospect of running out of jobs, and not just for the low-skilled, writes political economist Robert Skidelsky for Project Syndicate....

Say It With Numbers

Nayan Chanda February 6, 2013
Manufacturers, especially on high-priced items like cars or electronics, are offering a bit more detail on the source countries for their products. More detail reveals the integration of the global economy and how globalization contributes to job growth. A new database from the World Trade Organization and the Organization for Economic Co-operation and Development – Trade in Value-Added, or TIVA...

Will Printing Money Do It?

Nayan Chanda October 9, 2012
Central banks can add to the money supply by lowering interest rates for major financial institutions and purchasing bonds, thus increasing credit and liquidity – and this is what major central banks in the West have set out to do until economic growth and jobs return. The practice amounts to “printing money.” For example, the US vows to insert $40 billion each month into the economy to purchase...