Foreign Affairs Article

Bean Counters to the Rescue

Author: Diane Coyle

What is a company worth? On its latest balance sheet, Apple showed assets of $261 billion, including $8.7 billion of “intangibles,” such as the positive views of the company held by consumers and investors.

See more in Global; Economics

Foreign Affairs Article

What Caused the Crash?

Author: Athanasios Orphanides

Crises are an inevitable outgrowth of the modern capitalist economy. So argues Martin Wolf, chief economics commentator for the Financial Times, in his authoritative account of the 2008 financial crisis. Instability reveals itself in the form of shocks; even a seemingly small deviation from the norm can set off a major crisis.

See more in United States; Financial Crises

Foreign Affairs Article

Embracing China's "New Normal"

Author: Hu Angang

It is clear by now that China’s economy is set to slow in the years to come, although economists disagree about how much and for how long. Last year, the country’s GDP growth rate fell to 7.4 percent, the lowest in almost a quarter century, and many expect that figure to drop further in 2015. Plenty of countries struggle to grow at even this pace, but most don’t have to create hundreds of millions of jobs over the next decade, as China will.

See more in China; Economics

Foreign Affairs Article

China's Dangerous Debt

Author: Zhiwu Chen

In September 2008, when Chinese President Hu Jintao got word that Lehman Brothers, then the fourth-largest U.S. investment bank, was on the verge of bankruptcy, he was traveling by van along the bumpy roads of Shaanxi Province. Surrounded by policy advisers and members of the Politburo, Hu asked them how China should respond to the inevitable spillover.

See more in China; Budget, Debt, and Deficits

Foreign Affairs Article

In Defense of Financial Innovation

Author: Andrew Palmer

At a 2013 conference held by The Economist in New York, business and policy leaders debated whether talented university graduates should join Google or Goldman Sachs. Vivek Wadhwa, a serial entrepreneur, spoke up for Google. “Would you rather have your children engineering the financial system [and] creating more problems for us, or having a chance of saving the world?” he asked.

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Foreign Affairs Article

Putin's Hard Turn

Author: Joshua Yaffa

For many who arrived in Moscow in recent decades, the city had an almost narcotic effect. In the vacuum created by the Soviet collapse, unabashed opportunism and a limitless sense of the possible became the closest thing the wounded country had to a collective ideology.

See more in Russia and Central Asia; Economics

Foreign Affairs Article

Germany's Real Role in the Ukraine Crisis

Authors: Elizabeth Pond and Hans Kundnani

In his discussion of German foreign policy’s supposed drift eastward, Hans Kundnani (“Leaving the West Behind,” January/February 2015) suggests that Germany has resisted imposing sanctions on Russia over its undeclared war with Ukraine—a sign, in his view, that Germany might once again desert the West in a flirtation with Russia.

See more in Germany; Ukraine; Sanctions

Foreign Affairs Article

The Art of the Cell

Author: Marcelo Claure

A native of La Paz, Bolivia, Marcelo Claure graduated from Bentley College, in Waltham, Massachusetts, in 1993 with a degree in economics. His first job afterward was with the Bolivian Football Federation.

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Foreign Affairs Article

Much Ventured, Much Gained

Author: Michael Moritz

Born in 1954 in Wales to Jewish refugees from Nazi Germany, Michael Moritz attended Howardian High School in Cardiff and studied history at Christ Church, Oxford. After college, he moved to the United States, getting an MBA from Wharton and then working as a reporter for Time.

See more in United States; Entrepreneurship

Foreign Affairs Article

Misrule of the Few

Author: Pavlos Eleftheriadis

Just a few years ago, Greece came perilously close to defaulting on its debts and exiting the eurozone. Today, thanks to the largest sovereign bailout in history, the country’s economy is showing new signs of life.

See more in Greece; Economics

Foreign Affairs Article

Leaders Indicating

Author: Ruchir Sharma

The normal rhythm of politics tends to lead most nations’ economies around in a circle, ashes to ashes. This life cycle starts with a crisis, which forces leaders to reform, which triggers an economic revival, which lulls leaders into complacency, which plunges the economy back into crisis again.

See more in Global; International Finance