In The News

Globalization Has Left Central Banks Facing a World of Growing Economic Uncertainties

Stephen King March 7, 2007
The macroeconomic policies of the world’s central banks are crucial for economic growth. By changing interest rates or adjusting the money supply, these banks keep inflation at low levels, thereby ensuring stable prices. That stability rests in large part on the predictability of the central banks and these institutions reacting consistently to market information. Recently, however, the data that...

US Heading For Financial Trouble?

Steve Kroft March 5, 2007
The US weakens its own security by borrowing vast sums from China and other nations to pay for reckless spending with little accountability. The nation, by not reducing spending or restructuring its health-care system over the next 20 years, will have to prepare for bankruptcy, insists David Walker, the US comptroller general, who has gone on tour to urge voters and politicians to oppose the...

Paulson Says Foreign Treasuries Holdings Not Threat

Christopher Swann March 5, 2007
The US holds more than $4 trillion in debt – almost $15,000 for every man, woman and child – and foreign investors hold more than half the notes. In response to congressional critics who question the strength of the US economy, Treasury Secretary Hank Paulson reports seeing no problem with foreign investors lending funds to the US. Even though US Congress controls spending appropriations, some...

China Market Plunges, Dow Follows. Now What?

Azam Ahmed March 1, 2007
Events on opposite sides of the globe triggered panic in world financial markets. “The fact that the Chinese market was at the center of the action is a new phenomenon,” writes Azam Ahmed in “The Chicago Tribune.” A clampdown on corruption, speculation and purchasing stock with borrowed funds prompted fears about the government forcibly restraining growth and caused the first sell-off in China....

A Budget for Globalization

February 22, 2007
Singapore’s historic status as a thriving international port has long rested on its openness to international business and trade. The government’s efforts in enticing foreign businesses and tourists to Singapore have made it among the most business-friendly economies in the world. One key to that success has been a willingness to adapt to a rapidly changing global economy, and the government...

Looking Beyond Iraq – Part I

Strobe Talbott February 21, 2007
The Bush administration – known for its “go it alone” approach in foreign policy – has less than two years left in office. As that chapter in history comes to a close, the world anticipates a new direction in US policy, an end to the war in Iraq and perhaps a new balance of power. This two-part series analyzes foreign-policy challenges confronting the world today and the resistance the US faces...

A Battle Over the Costs of Global Warming

David Leonhardt February 21, 2007
Now that environmentalists and scientists are unanimous that human activities cause global warming, the debate has shifted to the cost and pace of slowing it down. Two sides have emerged among economists: those who support immediate action versus those who support gradual steps. Sir Nicholas Stern of the UK released a 700-page report in late 2006 that suggests global warming could rival World...