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101. Rebuilding America Through Exports

Author:
M. Osman Siddique
Publication Date:
09-2010
Content Type:
Journal Article
Institution:
Council of American Ambassadors
Abstract:
In his State of the Union address, President Obama noted his intention to double US exports to grow our economy out of this recession. As a businessman and former US Ambassador, I could not agree more. This speech must be a clarion call. Millions of Americans are jobless, many thousands have lost homes, and we all— Democrats and Republicans—see the future with great concern and anxiety. Wall Street is shaky and Main Street is miles from revival. Can we rise to the challenge posed by new major competitors like China, India, Russia, etc.? Yes we can, but we clearly need a major shift in our economic strategy and foreign commercial trade policy.
Topic:
Economics
Political Geography:
Russia, United States, China, America, and India

102. How an Economy Grows and Why It Crashes

Author:
Daniel Wahl
Publication Date:
10-2010
Content Type:
Journal Article
Journal:
The Objective Standard
Institution:
The Objective Standard
Abstract:
Very few economists predicted an economic catastrophe in 2007. Even following the crash, many continued to claim that our present economic course was fine. As for today? “Three years into the mess, economists now offer remedies that strike most people as frankly ridiculous. We are told that we must go deeper into debt to fix our debt crisis, and that we must spend in order [to] prosper” (pp. xi–xii). The source of such seeming obliviousness, according to Peter and Andrew Schiff, is the early-20th-century economist John Maynard Keynes. According to the Schiffs, Keynes taught that governments could smooth market volatility, increase employment, boost growth, and raise living standards simply by going into more debt and printing more money. Although they grant that Keynes was smart, the Schiffs say he developed some very stupid economic ideas—ideas that are false, dangerous, and causing the collapse of America's economy. The Schiffs set out to counter these harmful ideas in How an Economy Grows and Why It Crashes. The book is an extended allegory of U.S. economic history, with supplementary discussions and illustrations. It begins with three men living on a tropical island, each subsisting on one fish per day, which he catches with his bare hands. One of the men, Able, devises a better way to catch fish: a net. Thus equipped, he hopes to catch more fish, and faster, leaving himself spare time to make new clothes.
Topic:
Economics
Political Geography:
United States

103. Making Choices: Prospects for a Canada-EU Free Trade Agreement.

Author:
Joseph Blomeley
Publication Date:
05-2010
Content Type:
Journal Article
Journal:
Journal of Public and International Affairs (JPIA)
Institution:
School of Public and International Affairs (SPIA), Princeton University
Abstract:
With a population of over 500 million, the European Union (EU) is Canada's second-largest trading partner. In 2006, two-way merchandise trade between Canada and the EU was approximately $78 billion and two-way investment reached $263 billion. While these figures are far from marginal, they pale in comparison to the $626 billion in two-way merchandise trade and $497 billion in two-way investment with the United States. In light of these numbers, analysts have argued that there is room for improvement in the economic relationship between Canada and the EU. They believe that the relationship has been significantly under-traded and under-valued. In an attempt to bolster this claim, a Canada-EU Joint Trade Study commissioned by the European Commission and the Government of Canada (GoC) recently noted that Canada is the EU's 11th-largest merchandise trading partner, with only 1.8 percent of external EU trade in this category (GoC, 2008). In light of the financial crisis in the United States, discussions to revive talks of a Canada-EU Free Trade Agreement (FTA) have begun to garner attention.
Topic:
Economics, Government, and Financial Crisis
Political Geography:
United States, Europe, and Canada

104. Improving International Policy Coordination in the Wake of the Financial Crisis.

Author:
Jonathan Burks
Publication Date:
05-2010
Content Type:
Journal Article
Journal:
Journal of Public and International Affairs (JPIA)
Institution:
School of Public and International Affairs (SPIA), Princeton University
Abstract:
The on going financial crisis has exposed the weaknesses of the risk management practices pervasive in the financial industry and the limitations of a domestic regulatory structure that fails to provide any federal regulator with the responsibility and authority to comprehensively oversee the financial system. Of course these problems have not been limited to the United States, as banks based abroad, like UBS, and economies around the world have also been shaken by the crisis. The crisis has also exposed the shortcomings of the international regime for economic and financial policy coordination.
Topic:
Economics and Financial Crisis
Political Geography:
United States

105. US-China Relations

Author:
Bonnie Glases
Publication Date:
01-2010
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Center for Strategic and International Studies
Abstract:
President Obama's first-ever trip to China was the main attraction of the fourth quarter. In addition to meeting Chinese leaders, Obama held a town hall-style assembly with Chinese students in Shanghai. The two sides signed a joint statement, the first in 12 years, which highlighted the depth and breadth of the relationship and promised greater cooperation. Nevertheless, the US media mostly faulted the president for not making sufficiently concrete progress on a number of problems. The Copenhagen climate talks garnered much attention in December. As the two largest emitters of CO2, negotiations between China and the US not only occupied the meeting's spotlight, but also ultimately decided its outcome. Trade friction continued to intensify with both countries launching new investigations and imposing duties on several products. The bilateral military relationship took a step forward with the visit to the US by Xu Caihou, vice chairman of China's powerful Central Military Commission.
Topic:
Economics
Political Geography:
Afghanistan, United States, and China

106. Regional Overview

Author:
Ralph A. Cossa and Brad Glosserman
Publication Date:
03-2010
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Center for Strategic and International Studies
Abstract:
Last quarter we focused on remarks by US President Barack Obama and Secretary of State Hillary Clinton proclaiming that “America is back in Asia,” an obvious dig at real and perceived neglect of Asia by the previous administration. This quarter, both were forced to postpone planned trips to Asia although, in Secretary Clinton's case, not before giving a major Asia policy address in Honolulu. This quarter also ended the same as last, amid hints that Pyongyang really would, at some not too distant point (but not this past quarter), return to six-party deliberations. On a more positive note, it looks like arms control agreements are on the way back, following the announcement that the US and Russia had finally come to terms on a new strategic arms agreement, to be signed by both presidents in April. Speculation about the “changing balance of power” in Asia also continues as a result of China's economic resilience and apparent newfound confidence, although it still seems premature to announce that the Middle Kingdom is back, given the challenges highlighted at this year's National Peoples' Congress. Political normalcy also appears to be a long way from returning to Bangkok where the “red shirts” have once again taken to the street, prompting the government to declare a state of emergency.
Topic:
Economics and Government
Political Geography:
Russia, United States, China, America, Asia, and Bangkok

107. US-Japan Relations

Author:
Michael J. Green and Nicholas Szechenyi
Publication Date:
03-2010
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Center for Strategic and International Studies
Abstract:
Prime Minister Hatoyama Yukio moved to implement his domestic policy agenda with an eye toward the Upper House elections this summer but watched his approval rating fall as he and members of his ruling Democratic Party of Japan (DPJ) were beset by political fundraising scandals. The impasse over the relocation of Marine Air Station Futenma continued to dominate the bilateral agenda and alternative proposals put forth by the Hatoyama government failed to advance the discussion. Concerns about barriers to US exports and the restructuring of Japan Post emerged in commentary by the Obama administration and congressional leaders but a joint statement highlighting cooperation on the Asia-Pacific Economic Cooperation forum (APEC) reinforced the economic pillar of the relationship. The Toyota hearings in Congress were covered extensively by media in both countries but did not have an immediate impact on US-Japan relations. However, the recall issue and other developments point to potentially negative perceptions that could cloud official efforts to build a comprehensive framework for the alliance over the course of the year, the 50th anniversary of the 1960 US-Japan Security Treaty.
Topic:
Security and Economics
Political Geography:
United States, Japan, and Asia

108. US-China Relations

Author:
Bonnie Glaser and David Szerlip
Publication Date:
03-2010
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Center for Strategic and International Studies
Abstract:
After a relatively smooth period in US-China relations through the first year of the Obama administration, the “honeymoon” ended in the first quarter of 2010. The new year brought new frictions and returned to the spotlight many problem areas. The quarter began with an unexpected announcement from an unlikely player in China-US relations: Google, the internet giant, reported extensive hacking of its networks traced back to China and then redirected Google.cn users to its Hong Kong site to evade Chinese censorship. Tensions were further stoked by the administration's notification to Congress of a major weapons sale to Taiwan and President Obama's meeting with the Dalai Lama. Throughout the quarter, economic frictions intensified, particularly over the valuation of China's currency. Despite these numerous difficulties, the quarter closed with the pendulum swinging back toward the center. At the end of March, President Obama and Deputy Secretary of State James Steinberg both reaffirmed the US commitment to a positive relationship with China; Beijing announced that President Hu would attend a major international nuclear security summit in the US in April 2010; and Obama and Hu, in a friendly phone call, renewed their determination to sustain healthy and stable ties.
Topic:
Economics and Health
Political Geography:
United States, China, and Hong Kong

109. China-Taiwan Relations

Author:
David G. Brown
Publication Date:
03-2010
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Center for Strategic and International Studies
Abstract:
The interaction between economic negotiations and Taiwan domestic politics will dominate cross-Strait relations this year. Formal negotiation of an Economic Cooperation Framework Agreement (ECFA) began in January and both sides now talk hopefully of completing the negotiations by June. On Taiwan, recent election losses make timely conclusion of the ECFA on terms welcomed by Taiwan voters important for President Ma Ying-jeou and the Kuomintang (KMT) party's political fortunes. The announcement of a US arms sales package in January was welcomed by Ma, but predictably created tensions in US-China relations – tensions that raise the stakes when the Obama administration considers Taiwan's request for F-16 C/D aircraft.
Topic:
Economics
Political Geography:
United States, China, and Taiwan

110. The Future of American Power

Author:
Joseph S. Nye Jr.
Publication Date:
11-2010
Content Type:
Journal Article
Journal:
Foreign Affairs
Institution:
Council on Foreign Relations
Abstract:
It is currently fashionable to predict a decline in the United States' power. But the United States is not in absolute decline, and in relative terms, there is a reasonable probability that it will remain more powerful than any other state in the coming decades.
Topic:
Economics
Political Geography:
United States and America

111. GDP Now Matters More Than Force

Author:
Leslie H. Gelb
Publication Date:
11-2010
Content Type:
Journal Article
Journal:
Foreign Affairs
Institution:
Council on Foreign Relations
Abstract:
Most nations have adjusted their foreign policies to focus on economic security, but the United States has not. Today's leaders should adapt to an economic-centric world and look to Presidents Harry Truman and Dwight Eisenhower for guidance.
Topic:
Security and Economics
Political Geography:
United States, Europe, and Washington

112. The Demographic Future

Author:
Nicholas Eberstadt
Publication Date:
11-2010
Content Type:
Journal Article
Journal:
Foreign Affairs
Institution:
Council on Foreign Relations
Abstract:
Global demographics in the twenty-first century will be defined by steep declines in fertility rates. Many countries will see their populations shrink and age. But relatively high fertility rates and immigration levels in the United States, however, may mean that it will emerge with a stronger hand.
Topic:
Economics, United Nations, and War
Political Geography:
United States and Beijing

113. Globalizing the Energy Revolution

Author:
Michael Levi, Adam Segal, Elizabeth C. Economy, and Shannon O'Neil
Publication Date:
11-2010
Content Type:
Journal Article
Journal:
Foreign Affairs
Institution:
Council on Foreign Relations
Abstract:
Clean-energy technology is expensive and the United States is spending far too little on developing it. The U.S. government must do more to promote cross-border innovation and protect intellectual property rights.
Topic:
Economics
Political Geography:
United States and China

114. An Interview with Andrew Schiff about Fishing Nets, Hut Gluts, and other Economic Matters

Author:
Andrew Schiff
Publication Date:
12-2010
Content Type:
Journal Article
Journal:
The Objective Standard
Institution:
The Objective Standard
Abstract:
The author and investor discusses his book, the state of economy, the cause of America's financial problems, and investment possibilities under the circumstances
Topic:
Security and Economics
Political Geography:
United States

115. Harnessing the Financial Furies: Smart Financial Power and National Security

Author:
Juan C. Zarate
Publication Date:
10-2009
Content Type:
Journal Article
Journal:
The Washington Quarterly
Institution:
Center for Strategic and International Studies
Abstract:
Economic sanctions have long been the national security tool of choice when neither diplomacy nor military force proves effective or possible. This tool of statecraft has become even more important to coerce and constrain the behavior of non-state networks and recalcitrant, rogue regimes which often appear beyond the reach of classic U.S. power or influence. The challenge is often how to use power to affect the interests of regimes that are likely immune to broad effects of sanctions on their populations.
Topic:
Economics
Political Geography:
United States

116. Russia, the United States, and the Challenge of Global Nonproliferation

Author:
John Beyrle
Publication Date:
10-2009
Content Type:
Journal Article
Institution:
Council of American Ambassadors
Abstract:
Speaking to Russian students at the New Economic School graduation during his visit to Moscow in July, President of the United States, Barack Obama, succinctly expressed the greatest challenge facing us: the proliferation of nuclear weapons.
Topic:
Economics and Nuclear Weapons
Political Geography:
Russia, United States, and Moscow

117. The China-United States Strategic and Economic Dialogue

Author:
Zhou Wenzhong
Publication Date:
10-2009
Content Type:
Journal Article
Institution:
Council of American Ambassadors
Abstract:
This year marks the 30th anniversary of the establishment of diplomatic ties between China and the United States. Over the course of these three decades, the relationship has had its ups and downs. However, owing to our joint efforts, steady progress has been made and remarkable achievements have been noted.
Topic:
International Relations and Economics
Political Geography:
United States and China

118. The Effects of Corruption on FDI Inflows

Author:
Ali Al-Sadig
Publication Date:
10-2009
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
The surge in foreign direct investment (FDI) flows during the 1990s has motivated a host of recent studies into their determinants. Recently, the level of corruption in the host country has been introduced as one factor among the determinants of FDI location. From a theoretical viewpoint, corruption—that is, paying bribes to corrupt government bureaucrats to get “favors” such as permits, investment licenses, tax assessments, and police protection—is generally viewed as an additional cost of doing business or a tax on profits. As a result, corruption can be expected to decrease the expected profitability of investment projects. Investors will therefore take the level of corruption in a host country into account in making decisions to invest abroad.
Topic:
Economics
Political Geography:
United States

119. China's Economic Policy in the Time of the Global Financial Crisis: Which Way Out?

Author:
Margot Schüller and Yun Schüllerr-Zhou
Publication Date:
12-2009
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
This contribution analyses the impact of the global financial crisis on the Chinese economy and the policies implemented by the Chinese government to cope with it. We argue, first, that China has not been able to decouple its economic performance from that of the U.S. and other developed countries. Second, although economic growth in the second quarter of 2009 showed that the stimulus package is working, the current development does not seem to be sustainable. In order to avoid another round of overheating, the government needs to adjust its stimulus policy. Third, the current crisis offers opportunities to conduct necessary structural adjustments in favour of more market-based and innovative industries, more investment by private companies and a stronger role of private consumption in economic growth. Fourth, with the external demand from the OECD countries declining, Chinese export companies need to further diversify their international markets and re-orient their production and sales strategies to some extent towards the domestic market.
Topic:
Economics, Government, and Financial Crisis
Political Geography:
United States and China

120. The Dollar and the Deficits

Author:
C. Fred Bergsten
Publication Date:
11-2009
Content Type:
Journal Article
Journal:
Foreign Affairs
Institution:
Council on Foreign Relations
Abstract:
The global economic crisis has revealed the folly of large U.S. budget and trade deficits, as well as of the strong dollar that makes them possible. If it is serious about recovery, the United States must balance the budget, stimulate private saving, and embrace a declining dollar.
Topic:
Economics and Monetary Policy
Political Geography:
United States

121. Evolving Military Responsibilities in the U.S.-ROK Alliance

Author:
Bruce Klingner
Publication Date:
01-2009
Content Type:
Journal Article
Journal:
International Journal of Korean Studies
Institution:
International Council on Korean Studies
Abstract:
The U.S.–South Korean security alliance has been indispensable in achieving Washington's strategic objectives and maintaining peace and stability in northeast Asia. A confluence of developments, however, is forcing changes in the alliance. These factors include a changing threat environment, an evolving U.S. military strategy, and South Korea's desire for greater autonomy as a result of its improving military and economic capabilities. It is important that the alliance begin the evolution from a singularly focused mission to a more robust values-based relationship that looks beyond the Korean Peninsula. Without substantial and sustained involvement by the senior political and military leadership, the alliance may not be sufficiently adapted to the new threat environment, including as a hedge against Chinese military modernization. The U.S. and South Korean administrations must also provide a clear strategic vision of the enduring need for the alliance and implement a robust public diplomacy program to prevent the erosion of public and legislative support. The plan to develop a U.S.–South Korean strategic alliance is a testament both to the successes of the long-standing military relationship and to the shared values of the two democracies.
Topic:
Economics and Military Strategy
Political Geography:
United States, Asia, and South Korea

122. Application of Principal-Agent Theory to Security Sector Reform

Author:
James Cohen
Publication Date:
11-2009
Content Type:
Journal Article
Journal:
Journal of Security Sector Management
Institution:
Centre for Security Sector Management
Abstract:
The goal of this paper is to propose principal-agent theory (PAT), a methodology adapted from economics to analyse the relations of a buyer and a seller, as a possible tool for an SSR practitioners' assessment toolbox. The added value of PAT is its capacity to analyse the relationships between actors of the security sector based on observable, measurable and tangible mechanisms that the actors utilise in controlling, resisting, and allying with other actors. This capacity to analyse these relations has been sought out in both academic critiques of SSR and from practitioners themselves. This paper is an initial proposal on the added value of PAT, in addition to demonstrating how it could be used, gaps are also identified on how to potentially take this tool forward to aid the SSR community.
Topic:
Economics
Political Geography:
United States

123. Bailout or Bankruptcy?

Author:
Jeffrey A. Miron
Publication Date:
01-2009
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
At the end of September 2007, the U.S. economy had experienced 24 consecutive quarters of positive GDP growth, at an average annual rate of 2.73 percent. The S 500 Index stood at roughly 1,500, having rebounded over 600 points from its low point in 2003. Unemployment was below 5 percent, and inflation was low and stable.
Topic:
Democratization, Economics, International Trade and Finance, Markets, and Privatization
Political Geography:
United States

124. Origins of the Financial Market Crisis of 2008

Author:
Anna J. Schwartz
Publication Date:
01-2009
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
I begin by describing the factors that contributed to the financial market crisis of 2008. I end by proposing policies that could have prevented the baleful effects that produced the crisis.
Topic:
Democratization, Economics, International Trade and Finance, Markets, Privatization, and Financial Crisis
Political Geography:
United States

125. Reflections on the Financial Crisis

Author:
Allan H. Meltzer
Publication Date:
01-2009
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
I am going to make several unrelated points, and then I am going to discuss how we got into this financial crisis and some needed changes to reduce the risk of future crises.
Topic:
Democratization, Economics, International Trade and Finance, Markets, Privatization, and Financial Crisis
Political Geography:
United States

126. Monetary Policy and Asset Prices Revisited

Author:
Donald L. Kohn
Publication Date:
01-2009
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
We are in the midst of a global financial crisis that is now weighing heavily on economies around the world. Although the outlook remains extremely uncertain, both the fragility of the financial system and the weakness in real activity seem likely to persist for a while. To promote maximum sustainable economic growth and price stability, the Federal Reserve has responded to this crisis by easing monetary policy markedly, and we have greatly expanded our liquidity facilities to keep credit flowing when private lenders have become reluctant or unable to do so. Other central banks have also cut policy rates significantly and expanded their lending. In addition, the federal government and governments around the world have taken extraordinary actions to strengthen financial systems to preserve the ability of households and businesses to borrow and spend.
Topic:
Democratization, Economics, International Trade and Finance, Markets, and Privatization
Political Geography:
United States

127. Asset Prices and Monetary Policy

Author:
Otmar Issing
Publication Date:
01-2009
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
Beyond dealing with the immediate problems, any crisis raises questions of why and how we got there and what lessons should be drawn to avoid a repetition of past developments—without laying the ground for a new disaster. This line of inquiry also applies to the current crisis in financial markets. Even during the heaviest turbulence a discussion has started on obvious deficits in the system of regulation and supervision and on badly needed improvements. In this article, I concentrate on monetary policy but that does not mean regulatory measures are irrelevant in this context, quite the opposite.
Topic:
Democratization, Economics, International Trade and Finance, Markets, and Privatization
Political Geography:
United States

128. What Lessons Can We Learn from the Boom and Turmoil?

Author:
Jeffrey M. Lacker
Publication Date:
01-2009
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
The current financial crisis undoubtedly will inspire a great deal of research in the years ahead, and it may take some time before anything like a professional consensus emerges on causes and consequences. After all, it took several decades to document the causes of the Great Depression, and recent research continues to provide new perspectives. Nonetheless, I believe the central questions that are likely to occupy researchers are plainly in view, and some tentative lessons have emerged already. And in any event, legislators are not likely to await the fruits of future scholarship.
Topic:
Democratization, Economics, International Trade and Finance, Markets, Privatization, and Financial Crisis
Political Geography:
United States

129. Financial Innovation, Regulation, and Reform

Author:
Charles W. Calomiris
Publication Date:
01-2009
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
Financial innovations often respond to regulation by sidestepping regulatory restrictions that would otherwise limit activities in which people wish to engage. Securitization of loans (e.g., credit card receivables, or subprime residential mortgages) is often portrayed, correctly, as having arisen in part as a means of “arbitraging” regulatory capital requirements by booking assets off the balance sheets of regulated banks. Originators of the loans were able to maintain lower equity capital against those loans than they otherwise would have needed to maintain if the loans had been placed on their balance sheet.
Topic:
Democratization, Economics, International Trade and Finance, Markets, and Privatization
Political Geography:
United States

130. Bad Rules Produce Bad Outcomes: Underlying Public-Policy Causes of the U.S. Financial Crisis

Author:
Bert Ely
Publication Date:
01-2009
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
The current global financial crisis is the worst economic crisis since the Great Depression, with no end in sight. Already, much political finger pointing has occurred, with most of those fingers pointed at supposedly greedy bankers, investors, and hedge-fund managers as well as the financial deregulation of recent decades. Governments everywhere are rushing to enact new regulatory protections to pre- vent another crisis of this magnitude. Yet if history is any guide, these new regulations will set up the global economy for yet another financial crisis, perhaps worse than the present one, or create regulatory straitjackets that will greatly impede economic growth.
Topic:
Democratization, Economics, International Trade and Finance, Markets, and Privatization
Political Geography:
United States

131. Federal Reserve Policy and the Housing Bubble

Author:
Lawrence H. White
Publication Date:
01-2009
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
The U.S. housing bubble and the fallout from its bursting are not the results of a laissez-faire monetary and financial system. They happened in an unanchored government fiat monetary system with a restricted financial system.
Topic:
Democratization, Economics, International Trade and Finance, Markets, and Privatization
Political Geography:
United States

132. The Case for Policy Sustainability

Author:
Wolfgang Münchau
Publication Date:
01-2009
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
Should we worry about moral hazard while the house is burning? The discussion about economic policy is full of biblical metaphors, the language of water and floods, and of fire extinction during crises. Metaphors, even when not mixed, are often obstacles to the clarity of thought. That is clearly the case with the metaphor of moral hazard in trying to understand the current financial crisis. Instead of focusing on moral hazard, I prefer to use the concept of policy sustainability to argue that sustainable monetary, fiscal, and regulatory policies are essential for lasting prosperity.
Topic:
Democratization, Economics, International Trade and Finance, Markets, and Privatization
Political Geography:
United States

133. Moral Hazard in the Policy Response to the 2008 Financial Market Meltdown

Author:
Andrew A. Samwick
Publication Date:
01-2009
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
The Cato Institute is the ideal place to draw lessons from the sub- prime crisis. The organization's mission focuses on the interaction of public policies with free markets and limited government. Even the most ardent believer in free markets must fully understand that individual liberty implies neither the nonexistence nor the indifference of government to economic affairs. Individuals live in freedom and peace when public policies are crafted in accordance with well-established rules and implemented with an eye toward effectiveness, not expansion. In the halls of government, we need sobriety and vigilance rather than apathy or empire building.
Topic:
Democratization, Economics, International Trade and Finance, Markets, and Privatization
Political Geography:
United States

134. Moral Hazard and the Financial Crisis

Author:
Kevin Dowd
Publication Date:
01-2009
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
There is no denying that the current financial crisis has delivered a major seismic shock to the policy landscape. In country after country, we see governments panicked into knee-jerk responses and throwing their policy manuals overboard: bailouts and nationalizations on an unprecedented scale, fiscal prudence thrown to the winds, and the return of no-holds-barred Keynesianism. Lurid stories of the excesses of “free” competition—of greedy bankers walking away with hundreds of millions whilst taxpayers bail their institutions out, of competitive pressure to pay stratospheric bonuses and the like—are grist to the mill of those who tell us that “free markets have failed” and that what we need now is bigger government. To quote just one writer out of many others saying much the same, “the pendulum will swing—and should swing—towards an enhanced role for government in saving the market system from its excesses and inadequacies” (Summers 2008). Free markets have been tried and failed, so the argument goes, now we need more regulation and more active macroeconomic management.
Topic:
Democratization, Economics, International Trade and Finance, Markets, and Privatization
Political Geography:
United States

135. Money and the Present Crisis

Author:
Gerald P. O'Driscoll Jr.
Publication Date:
01-2009
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
We remain in an economic crisis and financial crisis, one that Gary Gorton has named “The Panic of 2007” (Gorton 2008). The thesis of this article is that monetary policy has played a pivotal role. Under Alan Greenspan and now Ben Bernanke, the Fed has conducted monetary policy so as to foster moral hazard among investors, notably in housing (O'Driscoll 2008a). More generally, the crisis is the product of a “perfect storm” of misguided policy. Policies to encourage affordable housing fostered the growth of subprime lending and complex financial products to finance that lending. Regardless of the desirability of the social goal, the financial super- structure depended on housing prices never falling. Housing prices do fall sometimes, and did so decisively beginning in 2007 (Gorton 2008: 50).
Topic:
Democratization, Economics, International Trade and Finance, Markets, and Privatization
Political Geography:
United States, Europe, and New Zealand

136. Interest-Rate Targeting during the Great Moderation: A Reappraisal

Author:
Roger W. Garrison
Publication Date:
01-2009
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
In the era that has come to be known as the “Great Moderation” (dating from the mid-1980s), the Federal Reserve's policy committee (the Federal Open Market Committee or FOMC) pursued what has to be called a “learning-by-doing” strategy. The data that counted as relevant feedback—the unemployment rate and the inflation rate—seemed all along to be suggesting that the Fed was doing the right things. Even when the Fed lowered the Fed funds target to 1 per- cent in June 2003 and held it there for nearly a year, the economy appeared to be on an even keel and U.S. interest rates were in line with those in other countries. The historically low interest rates were attributed not to excessive monetary ease in the United States but to a worldwide increase in savings.
Topic:
Democratization, Economics, International Trade and Finance, Markets, and Privatization
Political Geography:
United States

137. The Way Forward: Incentives, Not Regulations

Author:
William Poole
Publication Date:
01-2009
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
Most of the world today is concentrating not on the way forward after the crisis, but the way out of the crisis. This concentration brings the very real danger that steps taken now will cause problems later. The most obvious danger, perhaps, is that enormous government spending, here and abroad, will increase outstanding debt to a degree that will increase temptation to attempt to finance government budget deficits through inflation. Moral hazard is the less obvious, but perhaps more serious, problem we will face.
Topic:
Democratization, Economics, International Trade and Finance, Markets, and Privatization
Political Geography:
United States

138. After War: The Political Economy of Exporting Democracy

Author:
Christopher J. Coyne
Publication Date:
01-2009
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
Christopher Coyne's book seeks to contribute to an understanding of the “precise mechanisms and contexts that contribute to or prevent” successful efforts to “export liberal democracy” by means of “military occupation and reconstruction” (p. 7). Even if this were the only accomplishment of this fine book, it would represent one of the most important contributions to the field of political economy in recent decades. However, Coyne does more. He draws from economics to produce a full-fledged framework for analyzing the economic, political, and social effects of all reconstruction efforts. He also questions the long-standing view that reconstruction requires, or even benefits from, a suspension of the principles of liberty, free association, and free market.
Topic:
Democratization, Economics, International Trade and Finance, Markets, and Privatization
Political Geography:
United States

139. Capitalism at Work: Business, Government, and Energy; Book 1 of Political Capitalism (A Trilogy)

Author:
Robert L. Bradley Jr.
Publication Date:
01-2009
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
Robert L. Bradley Jr., for many years had to balance loyalty to his employer, Enron, with his belief in Austrian economics. With the collapse of Enron came the opportunity to resolve the conflict in favor of Austrian economics. Bradley chose to undertake the slow development that would produce a definitive study rather than an instant bestseller. He ultimately decided to produce a three-volume treatment. The first of these, the book under review here, deals with two overriding conceptual issues relevant to the Enron collapse and their implications to Enron and earlier debacles. The first is what is the essence of free-market economics and whether the Enron experience undermines the case for free markets. The other is the invalidity of resource pessimism. Later volumes will deal with similar problems such as the Insull holding-company collapse in the Great Depression and then a concluding volume on Enron itself.
Topic:
Democratization, Economics, International Trade and Finance, Markets, and Privatization
Political Geography:
United States

140. On the Contrary: Leading the Opposition in a Democratic South Africa

Author:
Tony Leon
Publication Date:
01-2009
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
On the Contrary is a seamless combination of a memoir of an influential South African politician and a well-researched modern history of his country. The author was the leader of the liberal Democratic Alliance, the leader of the opposition in Parliament.
Topic:
Democratization, Economics, International Trade and Finance, Markets, and Privatization
Political Geography:
United States and South Africa

141. The Economic Quicksands of Globalization

Author:
Martin Walker
Publication Date:
01-2009
Content Type:
Journal Article
Journal:
European Affairs
Institution:
The European Institute
Abstract:
David Smick's book, The World Is Curved, explains that financial engineering has outpaced the understanding of regulators and governments - and even of many of the people involved in the business. His book, reviewed by journalist and consultant, Martin Walker, predicts that worse is still to come for the U.S. and also for highly-leveraged banks in Europe holding "toxic" assets.
Topic:
Economics
Political Geography:
United States, China, and America

142. Forget Bretton Woods II: the Role for U.S.-Japan-China Trilateralism

Author:
Yoichi Funabashi
Publication Date:
04-2009
Content Type:
Journal Article
Journal:
The Washington Quarterly
Institution:
Center for Strategic and International Studies
Abstract:
In this age of globalization, nations rise and fall in the world markets day and night. Europe, Germany in particular, may at first have indulged in a certain amount of schadenfreude to observe the abrupt fall from grace of the U.S. financial system. But not for long. As of November 2008, the euro zone is officially in a recession that continues to deepen. Germany's government was compelled to enact a 50 billion euro fiscal stimulus package. The Japanese economy, though perhaps among the least susceptible to the vagaries of the European and U.S. economies, followed soon after, with analysts fearing that the downturn could prove deeper and longer than originally anticipated. The U.S.—Europe—Japan triad, representing the world's three largest economies, is in simultaneous recession for the first time in the post-World War II era. China, meanwhile, is suddenly seeing its 30-year economic dynamism lose steam, with its mighty export machine not just stalling but actually slipping into reverse.
Topic:
Economics, Globalization, and Government
Political Geography:
United States, Japan, China, Europe, and Germany

143. Toward Reconciliation in Afghanistan

Author:
Michael O'Hanlon
Publication Date:
04-2009
Content Type:
Journal Article
Journal:
The Washington Quarterly
Institution:
Center for Strategic and International Studies
Abstract:
How can we make sense of where the United States is in Afghanistan today? A poor country, wracked by 30 years of civil war, finds itself at the mercy of insurgents, terrorists, and narco-traffickers. NATO's economy-of-force operation there has attempted to help build a nation with very few resources. Yet, overall levels of violence remain relatively modest by comparison with other violent lands such as the Congo, Iraq, and even Mexico. Economic growth is significant and certain quality of life indicators are improving, though from a very low base. The United States is committed to Afghanistan and over the course of 2009 will roughly double its troop strength there. The international community is also seriously committed, with a number of key countries such as Canada, the Netherlands, and the United Kingdom fighting hard and applying solid principles of counterinsurgency.
Topic:
NATO and Economics
Political Geography:
Afghanistan, United States, Iraq, United Kingdom, Canada, Democratic Republic of the Congo, Mexico, and Netherlands

144. Deng Undone: The Costs of Halting Market Reform in China

Author:
Derek Scissors
Publication Date:
05-2009
Content Type:
Journal Article
Journal:
Foreign Affairs
Institution:
Council on Foreign Relations
Abstract:
Driven by a near obsession with economic growth, Beijing has extended the state's reach into the economy. Instead of urging the Chinese government to resume extensive market reforms, Washington should encourage it to focus on a narrow range of feasible measures.
Topic:
Economics, Government, and Reform
Political Geography:
United States, China, and Beijing

145. State Capitalism Comes of Age: The End of the Free Market?

Author:
Ian Bremmer
Publication Date:
05-2009
Content Type:
Journal Article
Journal:
Foreign Affairs
Institution:
Council on Foreign Relations
Abstract:
Across the world, the free market is being overtaken by state capitalism, a system in which the state is the leading economic actor. How should the United States respond?
Topic:
Economics, Government, and Reform
Political Geography:
United States, China, and Europe

146. Necessity, Choice, and Common Sense: A Policy for a Bewildering World

Author:
Leslie H. Gelb
Publication Date:
05-2009
Content Type:
Journal Article
Journal:
Foreign Affairs
Institution:
Council on Foreign Relations
Abstract:
The United States is declining as a nation and a world power. This is a serious yet reversible situation, so long as Americans are clear-eyed about the causes and courageous about implementing the cures, including a return to pragmatic problem solving.
Topic:
Foreign Policy and Economics
Political Geography:
United States, China, and America

147. Persistent primacy and the future of the American era

Author:
Robert J Lieber
Publication Date:
03-2009
Content Type:
Journal Article
Journal:
International Politics
Institution:
Palgrave Macmillan
Abstract:
Arguments are widely expressed that America is in decline, both at home and abroad. These admonitions extend not only to economic, diplomatic and geopolitical realms, but even to the cultural arena. The United States does face real and even serious problems, but there is an unmistakable echo of the past in current arguments. Antecedents of these views were evident in the 1970s, '80s and '90s, and on occasion even in identical language. Indeed, declinist proclamations have appeared on and off not only throughout the 20th Century, but also during the 18th and 19th Centuries. Moreover, periodic crises in US history have included challenges more daunting than those of today. It can thus be instructive to compare the arguments and prescriptions of the new declinism with those of earlier eras. The evidence suggests a pattern of over-reaction, a historicism, and a lack of appreciation for the robustness, adaptability and staying power of the United States.
Topic:
Economics
Political Geography:
United States and America

148. A Hegemon's Coming of Age

Author:
Walter Russell Mead
Publication Date:
07-2009
Content Type:
Journal Article
Journal:
Foreign Affairs
Institution:
Council on Foreign Relations
Abstract:
George Herring's well-written and lively book may turn out to be one of the last attempts by a leading scholar to compress a comprehensive and comprehensible account of the United States' foreign relations into a single volume.
Topic:
Economics
Political Geography:
United States

149. India's Fortune

Author:
Edward Luce
Publication Date:
07-2009
Content Type:
Journal Article
Journal:
Foreign Affairs
Institution:
Council on Foreign Relations
Abstract:
Nandan Nilekani has produced one of the best and most thought-provoking books on India in years.
Topic:
Economics and Government
Political Geography:
United States and India

150. U.S.-China Relations

Author:
Bonnie Glaser
Publication Date:
01-2009
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Center for Strategic and International Studies
Abstract:
The U.S. and China held the 5th Strategic Economic Dialogue and the 6th Senior Dialogue this quarter. The global financial crisis was a focal point of discussion in both dialogues, as well as in the meeting between Presidents Bush and Hu Jintao on the sidelines of APEC in Lima, Peru. Beijing responded to the announced U.S. sale of $6.5 billion in arms to Taiwan by suspending bilateral military exchanges between the U.S. and China and talks on nonproliferation. China's internal debate about the international structure of power and the status of the U.S. was revived as the two prepared to celebrate the 30th anniversary of the establishment of diplomatic ties.
Topic:
Economics and Government
Political Geography:
United States, Japan, and Beijing