In The News

Financial Crisis Belies Myth of US Independence

Edward Goldberg October 30, 2008
Countries make the mistake of assuming that they can pick their way through globalization – that they can block products from other countries yet sell in those markets, or set rules for others to follow while intending to ignore those same rules at home. No community or country, as economic units, can escape financial decisions made thousands of miles away, argues Edward Goldberg, international...

The Anti-West: An Axis in Need of Oiling

October 28, 2008
Iran, Russia and Venezuela collaborated on some security matters designed to keep the US in its place, but have since discovered the need for an economically strong US. A global economic crisis that began in the US, starting with a decline in housing prices and the default of high-risk mortgages, expanded into a credit freeze and a decline in oil prices. Sinking oil prices or limited output...

Do You Really Want This Job?

David Dapice October 24, 2008
An era of the US living beyond its means has come to an abrupt end, with a flailing stock market and credit freeze, mounting job losses, wages that do not keep pace with climbing housing prices, and the world’s costliest health care system that fails to cover all citizens. The next US president, to be decided in the November 4 election, will inherit a battered economy that restrains any US role...

How to Capitalize the Banks and Save Finance

George Soros October 13, 2008
The US quickly approved devoting at least $700 billion to rescue the nation’s financial system. The steps for recapitalizing banks must be well structured and highly transparent, suggests financier and philanthropist George Soros in the Financial Times. Soros offers specific recommendations: ordering bank supervisors to estimate how much capital is needed to meet required levels and reveal plans...

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 I

Branko Milanovic October 8, 2008
Gripped with mistrust, uncertain about the value of assets like real estate and company stocks, global banks and investors are reluctant to lend and instead cling to cash. This three-part YaleGlobal series examines the implications of the crisis for different parts of the globe. In the first article of the series, economist Branko Milanovic points out what’s most unnerving about the credit crisis...

The Russian Challenge – Part II

Joergen Oerstroem Moeller October 6, 2008
For enduring success in this era of interdependence, negotiation rather than military power might prove more effective. Neighboring and competing states automatically flinch from those who employ bullying tactics, and long to follow countries that lead by example. This YaleGlobal series examines Russia’s relationship with Europe and the US, and in the second part of the series, former diplomat...