In The News

The US Deficit Economy: Project Syndicate

Joseph E. Stiglitz August 12, 2019
The Trump administration is delivering shocks to the economy before experts can assess the consequences, suggests economist Joseph Stiglitz. All that is sure about the US economy is volatility and uncertainty. Reductions in the interest rate by the US Federal Reserve as central bank have little effect. “Long ago, John Maynard Keynes recognized that while a sudden tightening of monetary policy,...

Korea to Ban Stock Short-Selling: Korea Herald

Park Ga-young August 7, 2019
Stock exchanges of many nations imposed various bans on short-selling during and after the 2008-2009 global debt crisis. Investors expecting a stock to decline borrow shares – as a hedging strategy or speculation – and then resell these to buyers who pay the market price: Further decline results in profits for the first investor while a rise can result in huge losses, explains Investopedia. South...

China's Central Bank Saves the Day: Forbes

Kenneth Rapoza August 6, 2019
A trade war and US tariffs have eroded the value of China’s currency. The US president announced tariffs and global stock markets declined. The US Treasury Department designated China as a currency manipulator, and China’s central bank announced removing about 30 billion yuan, or $4.2 billion, from the Hong Kong market. China denies the currency manipulation charge. “Many emerging market central...

“Hidden” Debt and Trouble for Global Economy: CNBC

Yen Nee Lee July 31, 2019
Investors are alert to any signs of a global recession and decline in economic growth. A research and analytics unit under S&P Global suggests that companies that have skipped the crediting rating process in taking on debt could be signaling signs of troubles. Credit ratings provide an independent assessment on the ability to repay debt, and low interest rates and attempts by central banks to...

Africa’s Broadcasting Revolution: African Business

David Thomas July 30, 2019
Africa’s young audiences are embracing tried-and-true formulas for television programming from elsewhere in the world – “homegrown, home-produced content telling stories about themselves – it’s the same the world over,” as suggested by an executive of TVC Communications, as reported by David Thomas for African Business Magazine. Popular shows include Wake Up Nigeria and The Bachelor in South...

Dollar Strength Not Born in the US: Financial Times

Bhanu Baweja July 18, 2019
The US dollar remains strong despite declining growth and bond yields in the United States and the world. Global markets may have more control than the US government over the value of the dollar. “Faced with weak growth in the rest of the world, investors gravitate to US bonds and defensive equities, and the dollar strengthens,” explains Bhanu Baweja for Financial Times. The Trump...

World's Bond Markets: Bloomberg

John Ainger July 15, 2019
Bonds are generally considered safe investments, and demand pushes yields down. Confronting low wages and low inflation, central banks struggle to raise interest rates. The number of negative-yield bonds is growing: These are worth less than the principal invested when held to maturity. Governments may take on excessive debt as bond issuers essentially charge investors for holding their money....