In The News

Painful Euro Crisis and Lessons for the World – Part I

Jacob Funk Kirkegaard November 16, 2011
The slow-motion crisis of the euro seems to have reached a plateau with the formation of new governments in Greece and Italy. But Europe’s debt crisis is complex with far-reaching implications. In this two-part series, YaleGlobal examines the ramification of the crisis, the reform course Europe must take and the lessons that others can draw from it. In the first part of the series, Jacob Funk...

Cross-Border Banking in the Balance

Erik Berglof November 16, 2011
Cross-border banking should not become a casualty of the clean-up act required for the eurozone crisis, argues Erik Berglof, the Chief Economist of the European Bank for Reconstruction and Development. The gains from financial integration in Europe have been great, particularly through the actions of foreign subsidiaries of large European banks in emerging central and eastern European countries,...

Obama and Asia’s Two Futures

Yuriko Koike November 15, 2011
Asia must choose between two futures, according to Yuriko Koike, former Japanese defense minister: a multilateral structure of peace or a system of strategic military alliances dominated by China. The Asia-Pacific Economic Cooperation summit in Hawaii gave US President Barack Obama a constructive role in managing a problematic rise of China with aspirations of other regional powers, including...

Europe Close to Creating “Budget Tsar”

Joshua Chaffin November 15, 2011
With European countries struggling to get a control on debt, the European Commission is taking steps to appoint one person responsible for scrutinizing finances. Rival commissioners could not over-ride disciplinary measures imposed by the commissioner for economics and monetary affairs on nations that overspend. “Commission officials argue that the new changes are necessary to prevent national...

Obama: Hoping for Pacific Free Trade Plan by 2012

Elaine Kurtenbach November 14, 2011
Recession in Europe – Asia’s second most important trade partner after the US – was a concern for leaders of the Asia-Pacific Economic Cooperation forum. At the meeting in Hawaii, APEC leaders agreed that free trade and global cooperation could fend off recession in Europe, reports Elaine Kurtenbach for Businessweek. In an era of bilateral trade pacts, US President Barack Obama introduced a plan...

Why Italy’s Days in the Eurozone May Be Numbered

Nouriel Roubini November 11, 2011
Italy is the world’s eighth largest economy and the government is now obliged to borrow at interest rates of 7 percent for daily operations. Italians have approved austerity reforms, but the nation’s €1,900 billion in debt may require restructuring, sending shudders among banks and investors. Restructuring won’t trigger economic growth, and reviving Italy’s credibility could require at least a...

Indian Firms Jolted by China's Social Security Plan

Saibal Dasgupta November 10, 2011
The cost for foreign firms doing business in China will climb as the country extends social-security obligations to cover foreign companies and their employees, reports Saibal Dasgupta in the Times of India. The move may lead many firms to reconsider expansion plans in China. Employers will contribute 37 percent of salary and employees 11 percent for benefits including pensions, and health...