In The News

The G-20 and the Future of Capitalism – Part I

Jeffrey E. Garten March 30, 2009
The world’s eye will be on the summit of the Group of 20 meeting in London on April 2. As the member nations – from Argentina to the United States – represent 80 percent of world trade, their decision will have an immediate and direct bearing on the global economic recession roiling the world. Doubts and anger emerge in nations that have long embraced capitalistic principles and free and open...

No One Model for New Global Economy

Yoichi Funabashi March 23, 2009
As the global crisis deepens and countries seek different ways out, devising new global economic institutions would do little to restore confidence. Instead, the institutions in place – the International Monetary Fund, the Bretton Woods system on exchange rates and the World Bank – should take immediate steps to incorporate a rising Asia into their systems of global governance. Otherwise the...

US and China: Grappling Over Economic Rescue – Part II

Edward Gresser February 2, 2009
With the rest of the world looking for leadership in emerging from economic crisis, how to stimulate the growth in China and the US has become the most urgent task. Other nations expect the pair to coordinate policy and do what they can to unfreeze credit, restore stable growth and ease unbalances. Currency rates are one of the ways to moderate swings in global growth and trade flows, explains...

US and China: Grappling Over Economic Rescue – Part I

Xu Sitao January 30, 2009
Trade imbalances, fueled by overproduction and saving in Asia, too much consumption and debt in the West, have compounded the harsh global recession. Analysts in the US and elsewhere in the West floundering for a remedy have focused on China’s trillion-plus dollar surplus and suggest that an increase in Chinese domestic spending might ease the global pain. This two-part YaleGlobal series suggests...

US and China Must Tame Imbalances Together

Michael Pettis January 6, 2009
With surging liquidity and massive trade imbalances, no one should have been surprised by the global economic crisis, because as finance professor of Peking University Michael Pettis explains, this has been the historical pattern. Pettis details the history of the crisis, starting in 1980s, when US policy encouraged securitization of mortgages, converting illiquid assets into highly liquid...

Global Crisis: How Far to Go? Part III

Scott B. MacDonald October 13, 2008
As profits surge, financial players eschew government intervention, but crave rescue as problems emerge. Public confidence in banks around the globe could make a cautious comeback, after the UK-led massive semi-nationalization of banks with "equity injection." This YaleGlobal series explores the global financial crisis, detailing how US troubles over mortgage-backed securities and the...

Global Crisis: How Far to Go? Part II

Manu Bhaskaran October 10, 2008
Speed of transportation and communication that characterize today’s global supply chain requires trust and flow of credit along the many steps: But now consumers worry about the future of their jobs, retailers and manufacturers worry about sales, suppliers worry about orders and lenders clutch to their reserves of cash. In the second article of the YaleGlobal series addressing the repercussions...