In The News

Future of Two Unions, the EU and the UK, Hangs in Balance

Alistair Burnett May 12, 2015
Voters in the United Kingdom surprised the world by re-electing Prime Minister David Cameron, whose ability to win concessions from the European Union could affect Britain’s influence abroad. “The Conservatives went into the election promising to renegotiate Britain’s relationship with the EU and then hold a referendum on continuing membership by the end of 2017,” explains Alistair Burnett,...

The Dollar Joins the Currency Wars

Nouriel Roubini May 6, 2015
Countries want to export more than they import and promote growth and employment. More than 20 central banks around the globe have eased monetary policy, reducing the value of their currencies to make exports more attractive, explains economist Nouriel Roubini for Project Syndicate. He notes that trade and lending imbalances are growing. “The dollar has also risen relative to currencies of...

Spain Criticizes Greece on Russia

Andrew Rettman April 21, 2015
Struggling to repay its debt and asking for new terms, Greece is desperate for relief. In April, Spanish Prime Minister José Manuel García-Margallo criticized the decision of Greek Prime Minister Alexis Tsipras, during a visit to Moscow, to denounce the sanctions and counter-sanctions between the EU and Russia. Greece is also on the defensive after a British newspaper suggested that Tspiras may...

The Grexit Dilemma: What Would Happen if Greece Leaves the Euro Zone?

Nikolaus Blome, Martin Hesse, Alexander Neubacher, Christian Reiermann, Michael Sauga, Christoph Schult and Alexander Smoltczyk March 10, 2015
Europe cannot agree on more bailouts for Greece, and since electing a new leftist government, Greece is failing to offer a plan on how it will repay its heavy debt, reports an article in Spiegel Online. This opens the possibility of the nation’s exit from the European Union: “Greece's creditors … will not just have to reach agreement with Athens on interest rates and payback periods, but...

Currency Wars Fool Few in the Age of Social Media

Will Hickey March 3, 2015
To push back at economic recession, Japan, the United States, Europe and other governments have printed extra money, lowered interest rates, and taken on new debt. The process is called quantitative easing. Corporations and individuals with extra cash must search for safe havens and investments. The currencies, reduced in value, reduce export costs and drive pools of money to emerging markets....

Grading Abenomics: It’s a C-

Edward J. Lincoln February 10, 2015
Abenomics – economic policies of quantitative easing, fiscal stimulus and structural reforms with deregulation – has been in play for two years since Shinzo Abe once again became prime minister of the world’s third largest economy. Economist and author Edward J. Lincoln suggests that Abenomics is not producing rapid improvements. Quantitative easing has shown results with modest gains in bank...

European Union Tries Rebooting the Economy

Joergen Oerstroem Moeller January 27, 2015
The European Central Bank announced dramatic expansion of its monetary stimulus plan to purchase asset-backed securities and bonds through September 2016 for a total of at least €1 trillion On the surface, the move has similarities to US stimulus measures in play since late 2008, with the US Federal Reserve purchasing billions of dollars in mortgage-backed securities, bank debt and treasury notes...