In The News

Britain Becomes Even More Wary of Unity

Anthony Faiola December 5, 2011
The United Kingdom moved cautiously on EU integration, retaining the pound and rejecting the euro as common currency. By opting out of the euro, Britain maintained the ability to print money and set interest rates. “Yet, as a member of the bloc, Britain has agreed to bind itself to regional regulations, employment laws and legal rulings, in exchange for a stronger voice in European affairs and...

Central Banks' Action Hints At US Fears

Geoffrey T. Smith December 2, 2011
The world’s largest central banks, led by the US Federal Reserve, have united to ease the flow of money and bank loans in the global system. The Wall Street Journal’s Geoffrey Smith compares the defensive measures tried in war, pointing out many analysts worry about what comes next and whether the defenses will hold. Perhaps most notable is the support from the US Federal Reserve. US taxpayers...

Europe Short on Cash as Bond Fears Deepen

Stefan Kaiser November 23, 2011
Unlike politicians, global investors are strict taskmasters. Banks are warning that European governments can no longer take the capital markets for granted in financing public projects, writes Stefan Kaiser for Spiegel Online. His article describes Germany as a safe haven, but shortly after the article was posted, a German auction sold only 65 percent of €6 billion in 10-year bonds. Investors are...

Russian Industries May Rile WTO by Undermining Trade Pledges

November 18, 2011
For nearly 20 years, Russia has worked on its bid for membership in the World Trade Organization. If approved by trade ministers in December, its entry will be the biggest step in global trade liberalization since China’s admission, according to the World Bank. Russia’s economy grew by more than 4 percent in 2010 and WTO membership could expand that to 11 percent by 2020. Oil and gas account...

Painful Euro Crisis and Lessons for the World – Part II

Joergen Oerstroem Moeller November 18, 2011
While overspending and giving citizens a false sense of prosperity, leaders of wealthy governments anticipated future economic growth to resolve all imbalances. This YaleGlobal series analyzes how the debt crisis unfolding in Europe may offer lessons for the rest of globe. A relatively small group of banks and investors control substantial global revenue, explains researcher Joergen Oerstroem...

Painful Euro Crisis and Lessons for the World – Part I

Jacob Funk Kirkegaard November 16, 2011
The slow-motion crisis of the euro seems to have reached a plateau with the formation of new governments in Greece and Italy. But Europe’s debt crisis is complex with far-reaching implications. In this two-part series, YaleGlobal examines the ramification of the crisis, the reform course Europe must take and the lessons that others can draw from it. In the first part of the series, Jacob Funk...

Cross-Border Banking in the Balance

Erik Berglof November 16, 2011
Cross-border banking should not become a casualty of the clean-up act required for the eurozone crisis, argues Erik Berglof, the Chief Economist of the European Bank for Reconstruction and Development. The gains from financial integration in Europe have been great, particularly through the actions of foreign subsidiaries of large European banks in emerging central and eastern European countries,...