In The News

Is the Sun Setting on US Dominance? – Part I

Joergen Oerstroem Moeller February 27, 2008
As the world’s economic and security interests become increasingly interconnected, many analysts speculate on what global leadership will emerge throughout the 21st century. This two-part series examines the changing role of the United States in the world‘s economic and security scene. In the first part of the series, Joergen Oerstroem Moeller, visiting senior research fellow with the Institute...

Brave New Economy

David Hale February 27, 2008
The Asian financial crisis 10 years ago convinced many governments on the continent to become big, yet cautious savers. Developing nations account for 75 percent of the world’s $6 trillion of foreign exchange reserves – and have sovereign funds worth $2.5 trillion. By purchasing vast sums of US treasury bonds and other debt, Asian and Middle Eastern investors contributed to low interest rates in...

Promise of US Jobs Lures Migrants Who Vowed to Stay in Mexico

Alfredo Corchado February 25, 2008
Immigrants who resent harsh treatment in the US, particularly those who lack documentation, often return to Mexico. But the Mexican economy offers little in the way of jobs, wages or benefits available in the US. Individuals long to work and hometowns rely on remittances sent from the north. The Mexicans may return home and vow to stay, but many cannot resist pleas from friends in Texas and...

The Recession Felt Around the World

Nouriel Roubini February 21, 2008
A recession looming for the US could affect countries all over the world that rely on exporting to the world’s biggest economy. Some analysts suggest that decoupling, or the process of decreasing dependence on American consumers, would prevent a recession’s effects from spreading. But the fact remains that the US is a top trading partner for many countries in the world, and even states that have...

Why Spanish Banks Seem Immune to the Subprime Virus

February 20, 2008
The subprime crisis that originated in the US – with lenders giving out mortgages to many people who could not afford future payments – has begun to weaken European banks as well. Credit-rating agencies assured investors that US mortgages were a safe investment, and banks purchased securities packages that included problem loans. As prices for homes in the US market fall and homeowners struggle...

Best US Factory Jobs in Rising Jeopardy

Mark Trumbull February 20, 2008
Facing increasing competition and productivity from workers in low-wage nations, US manufacturers slash jobs and costs. One method in use by US car manufacturers is incentives to convince older workers to quit and replace them with less expensive younger workers who also receive fewer benefits. Analysts expect cost-cutting measures from the large foreign manufacturers like Honda or Toyota as well...

India Back In Global Chain

Nayan Chanda February 20, 2008
The Tata-Boeing deal to supply a critical part used in the next-generation Boeing-787 Dreamliner shows that India has a chance to become a key member of the global manufacturing network, once again. Given India's long history of participation in the global world, this comes as no surprise. As Nayan Chanda points out, if Tata can meet the challenge of the production, its reputation will...