In The News

Which Asian Century?

Richard N. Haass October 30, 2013
Asia has the population and economic potential to dominate the 21st century. Yet Richard Haass, president of the Council on Foreign Relations, points out that Asia confronts two paths – continuing economic growth while avoiding conflict or increasing tensions. Haass suggests that Europe during the 20th century offers a model: During the first half, the continent engaged in two world wars with...

Shut and Down

Nayan Chanda October 25, 2013
Without good national governance, globalization could go belly up, warns Nayan Chanda, editor of YaleGlobal in his column for Businessworld. Over the protests of a few legislators, the US Congress did end a partial government shutdown and also lifted an artificial debt ceiling that allowed borrowing and payments to continue. “By pushing the US to the edge of a default and threatening the global...

Dollar, Default and Bretton Woods III

Mike Dolan October 17, 2013
The US Congress ended its impasse over lifting its debt ceiling, proceeding to pay bills and end the partial government shutdown. The uproar over what should be routine business will have repercussions: “a new world financial order may be emerging – but one possibly more dependent than ever on the United States protecting the dollar's position as dominant reserve currency,” writes Mike Dolan...

The Gated Globe

Greg Ip October 17, 2013
After the 2008 global economic crisis, leaders vowed to avoid protectionism, but they also took steps to avoid globalization’s negatives. “After two decades in which people, capital and goods were moving ever more freely across borders, walls have been going up, albeit ones with gates,” writes Greg Ip in a series for the Economist. “Governments increasingly pick and choose whom they trade with,...

World Leaders Press the US on Fiscal Crisis

Annie Lowrey, Nathaniel Popper October 15, 2013
Leaders of the World Bank and the International Monetary Fund warn that US failure to raise a debt ceiling and make payments on its debt will disrupt a global economic recovery underway since 2009. “Participants at the meetings remained on edge, given the gravity of the threat,” report Annie Lowrey and Nathaniel Popper for in the New York Times. The bankers and economists can only speculate about...

US Debt Standoff Provokes Ire in China

Simon Rabinovitch October 14, 2013
The threat of US debt default is bolstering China’s desire to lessen the world’s reliance on the dollar, reports Simon Rabinovitch for the Financial Times. Chinese officials and analysts are angry and incredulous about US budget shenanigans, but so far are avoiding public comment or drastic moves. “With $1.3tn invested in US Treasuries, any sudden move to sell those holdings would by itself shake...

Global Consequences of US Failure to Pay Debt

October 9, 2013
Deadlock over lifting the US debt limit – arbitrary, created by Congress to control spending – is unnerving economists worldwide. A few in Congress are willing to test a bizarre theory that refusing to pay debt, thus disrupting the global economy, will win them voters’ respect and force the country to tighten spending. Analysts in the US, China and Europe do not agree. Instead, US leaders will be...