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Posted on Wed, 27 Mar 13: Cyprus capital controls 1st in EU could last years, Bloomberg, 27 Mar 13: Cyprus is on the verge of an unprecedented financial experiment: imposing controls on money transfers in an economy that doesn't have its own currency. Nations from Argentina to Iceland have used similar measures in the past to defend against devaluation. Being part of the euro zone may make it harder for the island nation to enforce restrictions, as any money that leaves the banking system can be taken out without losing value (Euro zone overrates ability to curb contagion--Moody's, Reuters) Daniel Cohen: Homo Economicus--An uncertain guide, OECD Yearbook 2013, Mar '13: As humans, we face a constant internal conflict between immediate gratification and more prudent living. This conflict is also apparent in society. How can we ensure that the homo economicus within us takes the decisions that best affect our lives, and economies? The famous example of Ulysses and the sirens illustrates some possible methods. So as not to succumb to the song of the sirens, like Ulysses, I can try to tie myself to a mast, writes Ecole Normale Superieure prof / Paris School Econ founding member Nook & cranny: Does the universe have a purpose?, Templeton Foundation, Nov '08: Unlikely--Krauss, Case West. Res. U phyics prof; Yes--Gelernter, Yale computer sci prof; Perhaps--Davies, Ariz. State U Beyond Ctr dir; No--Atkins, Oxford U chem prof; Indeed--Murphy, Fuller Theolog. Seminary; Yes -- Gingerich, Smithsonian Astrophysical Observatory; Very likely -- Guiderdoni, Lyon, Fr. Observatory dir; No--de Duve, Nobel Laureate, Physiol./Med.; Yes--Haught, Georgetown U theologian; Not sure -- Tyson, NYC Hayden Planetarium dir; Certainly--Goodall, UN Messenger of Peace; and I hope so--Wiesel, Boston U prof Posted on Mon, 25 Mar 13: Cyprus to shrink bank sector under last-minute deal, Der Spiegel, 25 Mar 13: A Cypriot exit from the euro zone has been averted by a last-minute deal in which the gov't bowed to the demands of int'l lenders. Rich depositors, incl wealthy Russians, will face heavy losses in return for a 10 bln euro bailout, and the island's banking sector will be radically downsized. The new deal focused on its 2 insolvent major banks. It will wind down the largely state-owned Popular Bank of Cyprus, also known as Laiki, and shift deposits below 100,000 euros to the Bank of Cyprus Jim O'Neill: Will the BRICS announce a BRICS development bank?, Goldman Sachs, 18 Mar 13 [PDF]: I want to highlight here the coming meeting of the BRICS political leaders and the interesting topic, as is being discussed by some media, of the creation of a BRICS dev't bank. If they do, it could have important implications and certainly powerful symbolism about how the world of econ and finance is changing. The meeting will be in Durban, SAfrica on 26-27 Mar, writes GS Asset Mgmt chair, who coined the BRIC acronym (Emerging markets are more than just the BRICs, NYT) [via Deccan Herald/ India] Robert Zoellick: A new US int'l economic strategy, Wall St Journal, 5 Feb 13 [courtesy Peterson Inst]: Five years into the global econ storm, America's traditional allies, EU and Japan, are struggling. Developing economies are reshaping the global dynamic but also face big challenges. America's own strategy for econ revival cannot be limited to the nation's borders. And its future foreign policy--its projection of power and principle--must be grounded in the emerging econ order, writes fmr World Bank pres / Inst distinguished visiting fellow Posted on Fri, 22 Mar 13: Russia may help Cyprus only after its deal with EU, AP, 22 Mar 13 [via ABC News]: Moscow will help Cyprus out financially only if the nation's new money-raising measures get the backing of the European Union, Russia's PM said Fri. He said Russia "hasn't closed the door, hasn't said no" to Cyprus, but will discuss specific assistance to Cyprus only after it reaches a deal with the EU. Cyprus has until Mon. to secure a deal after the European Central Bank warned it would stop providing the country's banks with liquidity on that day if no package is agreed Cypriot banks on brink in Icelandic flashback, Reuters, 19 Mar 23: A small island on the edge of Europe teetering under the weight of its bust banks. Sounds familiar? Like Iceland and Ireland before it, Cyprus is battling to prevent an outsized and overextended banking sector from dragging the nation into the ground. While Reykjavik let banks fail and introduced capital controls, Dublin nationalized most of its financial sector
UN Sec-Gen calls on world to mobilize beyond the Earth Hour, World Wildlife Found., 22 Mar 13: In a message to the world on the eve of the 7th Earth Hour, UN Sec-Gen Ban has set the agenda for this year's event. "We participate with an undimmed determination to take action on climate change," he said. "Together, let's do our part and shed light on common sense answers for a cleaner, greener world." Earth Hour will take place tomorrow, Sat., 23 Mar at 8:30PM across the world. For the very 1st time, Russia's Kremlin and Red Square will switch off, joining around 100 landmarks across 70 cities and 150 nations Posted on Wed, 20 Mar 13: European Central Bank may cut emergency funding to Cyprus, Der Spiegel, 20 Mar 13: After rejecting a euro zone bailout deal on Tue night, Cyprus is now desperately searching for funding. Should aid not be found soon, the nation's banks might remained closed until next week. Meanwhile, criticism of Germany's role in the fiasco is mounting in Nicosia and Berlin. Many have begun looking to assign guilt for the debacle. And in both capitals, many have identified Chancellor Merkel as bearing much of the blame. More important, however, is identifying what to do next Kevin Watkins: Mumbai monolith epitomizes need for post-2015 agenda to tackle inequality, Guardian, 28 Jan 13: If you want a glimpse across the yawning chasm that separates the world's super rich from the ultra poor, there's no better place than Mumbai's Altamount Road. Look up and you'll see Antilla, the world's most expensive home. With spectacular ocean views, swimming and gym facilities, and no fewer than 3 helipads, the 27-storey shaft of steel and glass is the residence of the chair of a global energy conglomerate, writes Brookings senior fellow / UK Overseas Dev't Inst new exec dir Richard Neu: US 'soft power' abroad is losing its punch, US News & World Report, 31 Jan 13 [courtesy Rand]: What has the US done lately? The Doha round of trade negotiations has stalled. Ditto efforts at coordinated int'l action on climate change. Nations of the Arab Spring need rebuilding. And warnings from the US treasury secy to his EU counterparts about the dangers of failing to resolve the fiscal crisis in the euro zone met with public rebukes: Get your own house in order before you lecture us, writes senior economist / Rand-Qatar Policy Inst founding dir Posted on Mon, 18 Mar 13: Cyprus bailout deposit tax rattles markets, AP, 18 Mar 13 [courtesy WHBF]: Stocks around the world and the euro fell sharply Mon. as investors fretted over a plan to tax depositors in Cypriot banks as a way to partly fund a bailout of the island nation. The tax on depositors was a significant policy shift that has stoked fears of bank runs in other troubled EU economies. Cyprus residents already emptied virtually all ATMs on the island in a weekend bank run (Savers forced to bear costs in Cyprus bailout, Cyprus Mail) Flows into Asian bond markets raise risk of asset price bubbles, Asian Dev't Bank, 18 Mar 13: Emerging East Asia's local currency bond markets continued to expand in '12, signaling ongoing investor interest in the region but also raising the risk of asset price bubbles, says the bank's latest Asia Bond Monitor. Investors have been putting their money in the region since the early '90s, but the flows have picked up pace in recent years because of low interest rates and slow / negative econ growth in the developed world while emerging East Asia has enjoyed high growth rates and appreciating currencies Medhora: As inequality between nations falls, inequality within nations rises, Globe & Mail, 15 Mar 13 [courtesy Ctr Int'l Gov Innov]: The doyen of global rankings, the UN's Human Dev't Index, was released on Thu, and the real story is in the lower reaches of the rankings. Every nation in the world where the data exist has a higher human dev't score today than it did in 2000, with developing nations' scores growing faster. The gains are evenly spread across the index's components--income, life expectancy and education. Behind the numbers lies the larger trend that also forms the theme of this year's report, the rise of the South., writes CIGI pres |