In The News

Globalized Inflation

Joachim Fels June 20, 2008
Intricate connections between global economies – including trade treaties, exchange rates and foreign investment – prevent individual nations from completely controlling how their individual economies are molded. Low US interest rates have fueled a credit crisis and inflation so drastically as to render ineffective any region’s effort to staunch inflation. The inability of other regions, like...

Inflation Promises a Belt-Tightening Era

David Dapice June 17, 2008
Oil and food prices are rising – and plenty of economists worry about inflation. With some analysts predicting $200 per barrel oil in the near future and serious consequences down the line, consumers must prepare to get by with less. Much of the economic outlook depends on the ability of the US financial system to handle its growing debt load, explains economist David Dapice in this YaleGlobal...

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...

Plan Would Lift Saudi Oil Output

Jad Mouawad June 16, 2008
The world’s biggest oil exporter is increasing production this summer to its highest levels in history – and New York Times reporter Jad Mouawad suggests it’s a signal that Saudi Arabia is nervous about the growing furor over rising oil prices and demands for new sources of energy. Governments around the globe blame rising oil prices for hikes in food prices and increasing unrest. The Saudis...

Distance Does Matter

Nayan Chanda June 10, 2008
As fuel and transportation costs rise, regional networks are likely to become more essential. High transport costs will slow international trade for certain products, especially those with low value-to-freight ratios, such as apparel or industrial machinery. Producers will pass increased costs on to the consumer, but the most significant changes may emerge in the supply-chain production system...

In Nigeria, Oil Wealth Delivers Grief

Salil Tripathi June 10, 2008
Overdependence on oil is dangerous for both customers and producers: The soaring price of oil derivatives and transportation brings home the danger to the customer; but some producers are not immune either, as corruption, neglect and resulting conflict take their toll. Nigeria, fifth largest producer with the Organization of the Petroleum Exporting Countries, is a case in point, explains analyst...

Act Now to Prick the Oil Price Bubble

Meghnad Desai June 6, 2008
Analysts give plenty of reasons for the price of oil to climb – including increased demand from China and India, unrest in Nigeria, conflict in the Middle East, increased costs associated with exploration, limited refinement capacities. But these events are not new or sudden and probably don’t fully account for the steep increases, explains Meghand Desai, professor with the London School of...