In The News

How to Cure the Globalization Backlash

Harold Sirkin December 23, 2016
Those who fear globalization are often dismissed as bigots, but anxiety over security and jobs is another factor, explains author and professor Harold Sirkin for Forbes. Many in the developed world have lost confidence. “Unfortunately, too many people in the industrialized West have too much idle time on their hands – and not by choice,” he explains and that compounds the anger and fear. “People...

China Central Bank Extends Emergency Loans to Financial Firms

Rachel Rosenthal and Yifan Xie December 22, 2016
In mid-December, the People’s Bank of China, China’s central bank, pumped more than US$80 billion into the bond and money market sectors of its financial industry. The bank was responding to a precipitous drop in bond prices “that led authorities to temporarily halt trading,” reports the Wall Street Journal. Chinese investors worry about the US Federal Reserve’s embrace of increased rate...

US Federal Reserve Raises Rates

Harriet Torry December 14, 2016
The Federal Reserve, seeing improvements in the US economy and reduced unemployment rates, not only raised its benchmark short-term interest rate for the first time in a year but anticipates more rate hikes in 2017. The board’s vote was unanimous. Rates were kept near zero for seven years since the 2007-2008 financial crisis until a small rise in December 2015. “Fed officials said an improving...

The Complexity of Inequality

Michael Heise December 13, 2016
Governments delayed in accepting or tackling inequality as a major challenge. The concept “remains poorly defined, its effect is highly variable, and its causes hotly debated,” notes Michael Heise, chief economist of Allianz SE, for Project Syndicate. Inequality is concentrated in the developed world, and wealth is more broadly distributed at the global level: Since 2000, the ranks of the middle...

What the Latest Standardized School Tests Tell Us

Karin Klein December 9, 2016
Strong education systems contribute to strong economies. Every three years the Programme for International Student Assessment, PISA, tests the skills and knowledge of 15-year-old students in math, reading and science. More than 80 countries have participated, and many obsess about rankings. Comparisons based on raw scores can be tricky, warns Karin Klein for the Los Angeles Times. Researchers...

Can Trump – or Anyone – Bring Back US Manufacturing?

December 8, 2016
US voters and politicians worry about the loss of manufacturing and assembly jobs, which carry a wage premium over most service jobs. Yet numerous economists and other analysis express doubt that such jobs can quickly be restored in the United States. “The biggest reason Trump — or anyone else — can’t bring back jobs is because there is nowhere to bring them back from,” notes an article from...

Seizing Opportunity in a Post-TPP World

Stephen S. Roach December 1, 2016
Trade is the glue for globalization and without it other connections can subside. But US voters rejected a US leadership role in global trade deals and elected billionaire Donald Trump who has already signaled intent to have the United States to withdraw from the Trans-Pacific Partnership with 11 other nations. Analysts suggest that China could step into the US role, but “The baton of global...