Economics & Finance
Economics & Finance
Anatomy of a crisis
Changes in financial regulation in the past decade, coupled with the loose monetary policy of former Federal Reserve Chairman Alan Greenspan, are partly to be blamed for the financial crisis that has brought the world into the brink of recession, according to INSEAD Affiliate Professor of Accounting and Dean of the MBA programme, Jake Cohen.
Economics & Finance
Obama could help US economy recover by mid-2009
The victory of Barack Obama, the first African-American to become president of the United States, could help the troubled US economy recover by the middle of next year, says Ilian Mihov, professor of economics at INSEAD.
Economics & Finance
Tackling the financial crisis by changing tack
China, one of Asia’s economic powerhouses, is not immune to the global financial crisis despite enjoying double-digit growth in the last five years and being poised to achieve nine per cent growth this year. Share prices in Shanghai have fallen 72 per cent and house prices have come down 55 per cent. Demand has plummeted and thousands of factories have closed because of cancelled or delayed export orders.
Economics & Finance
Asia feels the pain caused by the crisis but could be poised for rapid recovery
Asia can’t escape the financial and economic crisis that is battering the rest of the world, but the region may be poised for a more rapid recovery if leaders in business and government work together and show leadership.
Economics & Finance
Blueprint for a new international financial order
Politicians have acted decisively to restore confidence and liquidity in the banking sector through the injection of capital and guarantees on interbank loans. The UK, continental Jean Dermine - INSEAD KnowledgeEU countries, the US and Switzerland, have injected new capital into their home banks, increasing capital ratios. Political leaders are now calling an international conference for a new international financial order to discuss the creation of a supranational supervisory body, Bretton Woods II.
Economics & Finance
Political change in China is ‘almost inevitable’ but Beijing has ‘nothing to fear’: Anson Chan
Asian pro-democracy advocate Anson Chan says China has ‘nothing to fear’ in allowing Hong Kong full democracy.
Economics & Finance
Australian banks well positioned to weather the financial crisis
In comparison to the battered banks elsewhere, Australia’s ‘big four’ banks have been “holding up very well” relative to their counterparts in the US and Europe, which have either filed for bankruptcy or have sought government bailouts, says John Schubert, chairman of the Commonwealth Bank of Australia, the country’s biggest lender by market capitalisation.
Economics & Finance
Leveraging the India connection
The UK beer market is one of the most competitive in the world but that did not deter Karan Bilimoria, an expat Indian with no prior experience, from taking it on.
Economics & Finance
Is India a safe haven?
A ‘helicopter view’ from INSEAD alumna Helen Alexander (‘84), Vice President, Confederation of British Industry (CBI).
Economics & Finance
Banks in Asia may weather global financial crisis
Banks operating in Asia should come out of the global financial crisis relatively unscathed compared to their counterparts in the US and Europe, given their more conservative lending activities and stronger balance sheets, bankers and financial experts said at a recent Bloomberg Leadership Forum held in Singapore.
Economics & Finance
Can China help power the global economy out of a crisis?
After five years of double-digit expansion, the world’s fastest-growing economy has succumbed to the economic chill wind sweeping across the globe. China’s economy slowed to an annual growth clip of 9 per cent in the third quarter from 10.1 per cent in the previous quarter – well below the consensus forecast of 9.7 per cent.
Economics & Finance
Living with uncertainty
The authorities in the US and Europe have the right policies in place to tackle the financial crisis, but it will take time to restore confidence in the markets, according to speakers at the World Knowledge Forum.
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Economics & Finance
Steering a new course in unchartered waters
With credit getting tighter, companies are going to have to change the way they do business and manage their cash. Laurence Danon, executive board member of Edmond de Rothschild Corporate Finance in France, says we are likely to see companies implementing huge cost-savings plans, probably with significant layoffs and dramatic changes to capital expenditure and development programmes.
Economics & Finance
Rethinking global financial systems
The consensus is loud and clear: in the wake of the worst global financial crisis since the Great Depression, a fundamental rethink of the structure of the global financial markets and greater cooperation of the major regulatory bodies are paramount, said the heads of major financial institutions at the World Knowledge Forum in Seoul.
Economics & Finance
Heed the lessons of the collapse of the ‘golden age’
It seemed like it was never going to end – the rise of the economy, the increased prosperity, the bull stock market. Forbes magazine said it would be ‘recognized as a golden age of American industry.” This was in the summer of 1929, but then the US economy collapsed. From growth rates of between three and 10 per cent in per capita terms, the US economy imploded: contracting 11 per cent in 1930, another 9.5 per cent the following year, and then shrinking a further 15 per cent in 1932. Who would have thought that the Roaring Twenties would transform into the worst economic disaster of all time?
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