In The News

Reform and Rebalance

Nayan Chanda October 9, 2013
The US Federal Reserve Board decides monetary policy that influences interest rates at home and overseas. Since the 2007 credit crisis, the Federal Reserve has purchased bonds to inject money into the economy – a policy that lowered interest rates and prompted investors to hunt for higher returns overseas. With slow improvement in the economy, many investors began thinking about returning to US...

To Shut Down Washington, Republicans Must Ask China's Permission First

Eamonn Fingleton October 2, 2013
China could step in to influence the latest political squabble in the United States by slowing down its purchases of US Treasury debt. A small group of conservative Republicans in US Congress want to slash spending and forced a shutdown of many government operations, while demanding a delay in a health care law, even though that has already slowed rising US health costs. Overseas creditors don’t...

Default or Not, Asia Hostage to US Debt

Choonsik Yoo, Kevin Yao September 30, 2013
Asia is shaking its collective head over dysfunctional US politics. A minority group of US legislators is toying with procedures, presenting the possibility of a government shutdown and a default on the country’s debt while expecting the majority of legislators to meet their demands to delay a healthcare law and cut spending. Creditors in China, Japan and elsewhere in Asia hold about $5 trillion...

Merkel Victory Will Mask Germany's Long-Term Economic Problems

Ambrose Evans-Pritchard September 23, 2013
Angela Merkel was reelected chancellor of Germany for a third term. The world’s fourth largest economy, and Europe’s largest, leads in tackling the eurozone crisis. But writing for the Telegraph, Ambrose Evans-Pritchard warns that Germany’s economic strength is deceptive, “an illusion of the business cycle and a China-driven global boom in machinery and capital goods that is running out of steam...

With Labs Pumping Out Legal Highs, China Is New Front in Global Drug War

Charlie Campbell September 18, 2013
Factories in China are rapidly manufacturing synthetic drugs, meant to mimic the effects of illegal substances like marijuana or cocaine. The drugs, untested for health and safety, are sold around the world labeled as bath salts or plant food. New to regulators, the substances remain legal until health issues, including deaths, are reported. The US Drug Enforcement Administration describes,...

Currency Conundrum

Nayan Chanda September 17, 2013
India’s dysfunctional political system has exacerbated the currency crisis, argues Nayan Chanda, YaleGlobal editor, in his column for Businessworld. Officials blame Indian investors’ keen interest in gold, over-exposure to global markets and over-reaction to reports of a strengthening US economy. Chanda suggests that Indian officials – whose country has benefited so much from globalization –...

Shale Energy No Quick Solution

Deepak Gopinath September 3, 2013
Innovations in drilling and hydraulic fracture technologies have opened new supplies of shale oil and gas for the United States, and other countries are intrigued. The United States anticipates energy independence, but the “shale boom may be more short-lived than many had expected, and shale’s global potential may also be overstated,” writes Deepak Gopinath, an independent economist based in New...