ECONOMICS AND GLOBAL AFFAIRS
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August 17, 2009
"Getting Your Fix"
Magazine or Newspaper Article, Corporate Counsel
By Ben Heineman, Senior Fellow, Belfer Center for Science and International Affairs
"The fixed fee is not an easy answer to the economic conflicts between firms and corporate clients. But the current economic crisis makes it imperative to have greater predictability and regularity on billing and payment for both law firms and corporate clients. Beyond economic necessity, the fixed fee provides the opportunity for better cooperation on money, just as the enhancement of in-house lawyers has made for much better cooperation on matters."
AP Photo
August 14, 2009
"Confucius Could Help Relations Between US, China"
Op-Ed, Christian Science Monitor
By Xiaohui (Anne) Wu, Associate, International Security Program/Project on Managing the Atom
"To use the middle way essentially means that Washington and Beijing should not be too optimistic, or even too pessimistic, about their relations. Nor should they overestimate their joint capacity in shaping the world order. Instead, they should value collaboration, but also prepare for deviations. The guiding principle of this middle way is to always solve problems in a peaceful, mutually respectful, and pragmatic manner."
AP Photo
August 2009
"Improving U.S.-China Relations: The Next Steps"
Policy Memo
By Richard N. Rosecrance, Adjunct Professor; Senior Fellow, International Security Program; Director, Project on U.S.-China Relations
A higher Renminbi will have two advantages: for the United States, it will help to equilibrate the past trade imbalance; for China, it will stimulate consumption (and enhance imports). It will therefore help China switch from a purely exporting strategy to one that maintains domestic growth through internal consumption. The goods that were to be sent abroad can now be consumed by an increasingly middle class nation at home. These steps will bring China and the United States closer economically and increase international stability. However, unless the military-security relations of the two countries improve, this will not be a sufficient remedy for the two nations' long term problems.
AP Photo
August 11, 2009
"A Runaway Deficit May Soon Test Obama’s Luck"
Op-Ed, Financial Times
By Niall Ferguson, Member of the Board, Belfer Center for Science and International Affairs
President Barack Obama reminds me of Felix the Cat. One of the best-loved cartoon characters of the 1920s, Felix was not only black. He was also very, very lucky. And that pretty much sums up the 44th president of the US as he takes a well-earned summer break after just over six months in the world’s biggest and toughest job.
AP Photo
August 8, 2009
"How to Save an ‘Underwater’ Mortgage"
Op-Ed, Wall Street Journal
By Martin Feldstein, George F. Baker Professor of Economics at Harvard University
Borrowers should get relief now, and the banks should get a guarantee down the road.
AP Photo
August 5, 2009
"A Proposal for a Global Upstream Emission Trading System (UGETS)"
Policy Brief
By Akinobu Yasumoto and Mutsuyoshi Nishimura
An effective policy approach to climate change would be a global emission trading system. Opinions differ, however, as to what approach should be pursued when fostering a global emissions trading system. Many argue in favor of linking various national and regional emission trading systems as a possible way forward. However, an alternative method, which involves developing a new system from the ground up, could prove more advantageous. Under an Upstream Global Emission Trading System (UGETS), all nations would use an upstream emissions trading system that would result in far fewer monitoring points than a downstream system. A nation would only need to keep track of domestic shipments and imports of fossil fuels.
AP Photo
August 1, 2009
"Britain Must Change If It Is to Keep Its Seat at World's Top Table"
Op-Ed, The Scotsman
By Azeem Ibrahim, Research Fellow, International Security Program
"It is increasingly clear Britain's knowledge sectors are our best hope for regaining a world-leading industry. But the government must support that effort towards building a knowledge economy faster and more effectively. That means putting greater investment into our communications infrastructure and universities, which suffer from under-investment compared to their US competitors. It also means offering the right incentive structures."
July 2009
"The Dynamics of Climate Agreements"
Discussion Paper
By Bard Harstad
This paper provides a novel dynamic model of private provision of public goods. The agents can also invest in cost-reducing technologies but, nevertheless, the Markov-Perfect Equilibrium (MPE) is unique and the analysis tractable. The non-cooperative outcome is compared to scenarios where the agents can contract on contributions investment), and the optimal contract is derived.
While the model fits a variety of contexts, the policy implications for climate agree- ments are particularly important. Environmental agreements (e.g. the Kyoto protocol) are typically specifying emissions but not investments in technology, since such e¤orts would be hard to verify. They often have a limited time horizon and future commitments remain to be negotiated.
AP Image
July 30, 2009
"Executive Compensation: Let's Look at Fund Managers' Pay,"
Op-Ed, Harvard Business Review
By Ben Heineman, Senior Fellow, Belfer Center for Science and International Affairs
"Yes, inside corporations we need to alter executive compensation dramatically to reduce the naked annual bonus and the naked stock option as outsized components of executive compensation. Yes, we need to devise compensation systems that pay over time for real economic performance and creation of economic value, that pay for financial discipline and risk management, and that pay for creating a culture of integrity(law, ethics, values). But will needed executive compensation reform inside companies founder because relentless short-term pressure from (some) powerful institutional investors undermines the need to reward executive achievement of performance, risk and integrity measures over a number of years."
July 29, 2009
"U.S. saving rate and dollar's future"
Op-Ed, The Korea Herald
By Martin Feldstein, George F. Baker Professor of Economics at Harvard University
The increase in the household saving rate reduces America's need for foreign funds to finance its business investment and residential construction. Taken by itself, today's $750 billion annual rate of household saving could replace that amount in capital inflows from the rest of the world.
