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.

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


Media Call: Mallaby and Kahn on Greece and the Eurozone

Presider: Adam Davidson
Speaker: Sebastian Mallaby
Speaker: Robert Kahn

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


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


Understanding the Chinese Economy

Speaker: Robert Hormats
Speaker: Olin Wethington
Presider: Steven Weisman

Experts discuss the Chinese economy and how President Xi Jinping's strategy might affect global markets.

See more in China; Economics