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...

While You're at It, Why Not Generate a Little Electricity

Jane Spencer March 6, 2007
People who perform hard workouts in a gym enjoy monitoring their efforts. Now gym managers can provide a new way to measure progress, by supplying batteries that store the energy released on exercise equipment. For now, the cost of capturing the energy far exceeds any savings – a gym in Hong Kong invested $15,000 in the battery equipment and wiring that generates less than $200 worth of...

In US Overtures to Foes, Signs of New Pragmatism

Helene Cooper March 6, 2007
In what some analysts label as a complete turnaround, the Bush administration is engaging in diplomatic activity with Iran, Syria and North Korea. US officials insist the new talks do not mark a change in policy. Presidential administrations are often divided by policymakers who urge a tough, demanding approach and others who favor engagement and pragmatism. The Bush administration is no...

Member of the Axis of Evil No More

Gavan McCormack March 5, 2007
Crisis can and seems to have opened new opportunity in the Korean peninsula. Having gone to the precipice of a nuclear confrontation, the parties in Northeast Asia have woken up to the need for a realistic approach. China, Japan, Russia, South Korea, the US and North Korea reached an agreement to dismantle the latter's nuclear-weapon program in exchange for fuel aid, opening the door to...

Who Should Foot the Bill on Climate Change?

Scott Barrett March 2, 2007
While the historic responsibility for the current state of atmospheric greenhouse gases lies with the now-developed countries, the fastest growing emitters are currently in the developing world. Scott Barrett, director of the International Policy Program at Johns Hopkins University, argues that it is in everyone’s interest to pursue the most efficient policy rather than the apparently populist...

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....

The Perilous Fantasy of Pursuing Energy Independence

A.F. Al Hajj February 27, 2007
Advance public announcements on research plans can lead to market manipulation. Leaders of developed nations – weary of instability in nations that supply oil and high prices – openly seek energy alternatives. But oil markets respond to the chatter about alternative energy in two ways: Some producers might reduce investment in infrastructure or additional capacity, and others might increase...