In The News

Asia Faces a Tough 2009 as Output Decreases

Michael Pettis December 15, 2008
Nations that engage in trading are not immune from the global economic crisis, as it spreads first throughout the trade-deficit, consumption nations and then on to the trade-surplus, producer nations, explains finance professor Michael Pettis for the Financial Times. Pettis offers three ways for the global economy to adjust: The rich countries can continue borrowing and consuming, or the trade-...

Switzerland Pays Price for Isolationism

Joshua Gallu December 5, 2008
Switzerland has long been known as “a custodian of the world’s wealth,” but the recent credit crunch has hit all banks hard and Swiss policies of isolation have not made the nation immune against effects of the economic downturn. The Swiss franc is losing value to the dollar, and the Swiss economy is expected to contract. Swiss bank UBS faced the biggest losses in Europe and had to be aided with...

Foreign Policy Challenges for the New US President – Part I

Imtiaz Ali October 31, 2008
States that ignore the aspirations of their people and neglect festering pockets of poverty, paying little heed to the need for education, health, jobs or fair wages, years later may discover a changed country, with new motivations and goals. This YaleGlobal series explores how poverty and demography can undermine democratic governments and bring security challenges not only to the government in...

Globalizing the Crisis Response

C. Fred Bergsten October 13, 2008
Regulation of finance has long been a responsibility for nations, but with the current global crisis, governments quickly learned they cannot escape a global credit freeze. Banks struggle to survive, some nations are already in recession and developing countries can anticipate reduced exports and problems ahead. The global nature of the crisis calls out for a global response, argue C. Fred...

Wall Street Dodges a Bullet, How About Next One?

David Dapice September 17, 2008
Low interest rates prompted many investors and homeowners to pour savings into real estate and homes. Investors, convinced that prices could not fall, purchased debt packages including mortgages based on ample credit with little down payments. Prices for homes and investments soared, with the total value of US housing going from about $12 trillion in 2000 to more than $20 trillion in 2006. Now,...

Globalization and Politics

Nayan Chanda September 17, 2008
Faced with a battered American economy and a five-year high unemployment rate, US presidential candidates tend to slip into anti-trade mode. Piling blame on foreigners is convenient and attracts votes. But the US has misidentified the source of its economic woes, suggests Nayan Chanda in his column for Businessworld. Outsourcing is just one side of the coin of globalization; on the flip side,...

Shipping Costs Start to Crimp Globalization

Larry Rohter August 4, 2008
Manufacturers increasingly sought a competitive edge by subcontracting out work for all manner of parts, from batteries to textiles, to countries with the lowest wages. But that strategy was viable only with low energy costs. Companies trying to keep costs low will move more operations closer to markets to reduce fuel costs, especially for bulky or perishable items like food. “Globe-spanning...