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.

See more in United States; Economics

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

Event

Media Call: Mallaby and Kahn on Greece and the Eurozone

Eurozone finance ministers meet in Luxembourg to negotiate a deal between Greece and its creditors before its International Monetary Fund debt repayment deadline at the end of June. Greece's membership in the eurozone hangs in the balance. CFR senior fellows Robert Kahn and Sebastian Mallaby will discuss the options the finance ministers might consider and their potential ramifications.

See more in Greece; Economics

Testimony

China's Future–and Our Own

Author: Jerome A. Cohen

In his testimony before the House Foreign Affairs Subcommittee on Asia and the Pacific, Jerome A. Cohen argues that China would benefit at home and abroad by demonstrating increasing respect rule of law, while the United States, by striving harder to set a good example, could do much to improve not only its own society but also its standing in China and the world.

See more in China; Defense Strategy; Economics

Op-Ed

Misreading the Fed on a Rate Increase

Author: Benn Steil
Wall Street Journal

Benn Steil’s op-ed explains how the mechanics of implementing Federal Reserve monetary policy have changed radically since the crisis. Little known is that the new plumbing is not actually controlled by the FOMC, but by the much smaller Board of Governors. Given that the Board is decidedly more dovish than the FOMC, Fed watchers focused on the latter may be expecting a more aggressive timing and pace of rate rises than is likely.

See more in United States; Monetary Policy