In The News

India to Replace Largest Bank Notes

Raymond Zhong November 10, 2016
Governments combat counterfeiting and tax evasion by eliminating big bills in circulation and imposing frequent design changes for currency. India’s Prime Minister Narendra Modi surprised citizens with news that its 500- and 1000-rupee banknotes would cease being legal tender the following day. The notes – representing more than 80 percent of the currency in circulation as of March – can be...

Climate Change and the Risks of Denying Inconvenient Truths

Martin Wolf November 2, 2016
Many industries – including agriculture and insurance – anticipate major disruptions from climate change. Martin Wolf, chief economics commentator for Financial Times, is pessimistic about US leadership on the issue, expressing alarm that climate change was not discussed more during the presidential campaign. He points to two types of denial: Major denial from Donald Trump and the right stems...

Asia Needs to Spell Out Changes They Want in International Monetary System

Barry Eichengreen October 31, 2016
The International Monetary Fund contributes to stabilizing the monetary system, reducing imbalances and providing emergency assistance as needed. Yet many Asian nations resist borrowing from the IMF and a regional arrangement for Asia has yet to be activated, writes Barry Eichengreen for Caixin. He urges critics to be specific on needed reforms: “Do they require further changes in the composition...

Europe Worries Portugal Is Prone to a Debt-Crisis Relapse

Patricia Kowsmann October 26, 2016
Portugal’s economic weakness is part of a long string of bad news for the European Union, which has been hit by a rising tide of euroscepticism. Earlier in October, Portugal’s central bank predicted a decline in investment in the country. The International Monetary Fund has asserted that this decline is due to the government’s turn away from austerity, including high levels of public and private...

Brexit’s Big Winner? It Could Be New York City

David Francis October 21, 2016
Many in the London banking industry are asserting that the city’s financial operations could relocate to New York City once Prime Minister Theresa May initiates Brexit. Banking is crucial to the British economy and accounts for up to 10 percent of national GDP, reports David Francis for Foreign Policy. He lists reasons for relocating. London bankers had opposed Brexit and can’t help but wonder...

Green Sovereign Bonds: Tactical Moves on an Emerging Market

October 20, 2016
France issued the first green sovereign bond in September and China may soon follow, joining the ranks of institutions like the World Bank and large companies. Green bonds fund programs aimed at stemming climate change and promoting alternative energies, energy efficiency, water treatment and other forms of sustainable development. So far, yearly issuances represent about 1 percent of the global...

Warming Russia-Turkey Relations Send a Chill Through Ukraine

Fred Weir October 18, 2016
Despite rising tensions among Russia, Turkey and the West over civil war in Syria, agreements are emerging over sending natural gas from Russia to Europe. Proposed development of two new pipelines would allow Russia to pass Ukraine in sending gas to the rest of Europe, reports Fred Weir for the Christian Science Monitor: “With TurkStream, Turkey will stand to become the chief distributor for...