In The News

The Great Skill Recession

Nayan Chanda December 2, 2013
The world has an unemployment problem. Most modern jobs require technological skills, and technology is supplanting increasing numbers of jobs. How this gap, first raised as a possibility by John Maynard Keynes in 1930, is addressed will shape the economic future of the United States, China, India and other nations, explains Nayan Chanda, YaleGlobal editor, in his column for Businessworld....

Swiss Voters Reject High-Pay Initiative

Neil MacLucas November 26, 2013
Swiss leaders in government and business vehemently opposed a ballot initiative restricting executive salaries to no more than 12 times that of the lowest paid employee, suggesting the reduced wages would reduce foreign investment, job growth and Swiss competitiveness in recruiting corporate staff. Voters agreed, with two thirds soundly rejecting the measure. “Earlier this year, Swiss voters...

A Global Challenge: Training Engineers for the 21st Century

November 22, 2013
Experts in science, technology, engineering and mathematics – the so-called STEM fields – help grow economies. Yet interest in these fields is down in the US and Europe. “Within industrialized countries, scientific and technical courses are deemed to be difficult, uninteresting and not competitive in terms of salary expectations,” reports ParisTech Review. An introduction to the essay points out...

How to Avert Another Debt-Ceiling Crisis

James Leitner, Ian Shapiro November 15, 2013
The United States borrows 46 cents for every dollar it spends, and despite congressional approval of the expenditures, a few members cling to a self-imposed debt ceiling, insisting that partial default may bring new discipline and spending priorities. “Had the debt ceiling been breached, the damage to the U.S. and world economies could have been measured in trillions of dollars,” write James...

The Perils of Falling Inflation

November 12, 2013
Central banks are national institutions that regulate currency and monetary policy. Typically, they are on watch against excessive inflation which can erode currency values. But low inflation that transforms into deflation may be a bigger problem. “As Japan’s experience shows, deflation is both deeply damaging and hard to escape in weak economies with high debts,” warns the Economist. “Since...

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...