Economics & Global Affairs

The heart of U.S.-China conflict is in the realm of ideas. Democratic principles of liberty, pluralism and freedom are antithetical to China’s autocratic Communist state and Chinese President Xi Jinping’s expanding cult of personality. Through its ubiquitous state surveillance and “Great Firewall” on online dissent, China seeks to deny its citizens freedom of expression and access to the outside world.

The recent ruling of the German Constitutional Court on the ECB was an economic and political bombshell. The deep controversy that resulted – within Germany and on a European scale – illustrates that the ambiguity surrounding the euro area’s legal order and architecture may have reached its limit.

The World Bank named Harvard University professor Carmen Reinhart as its chief economist, tapping an expert in the history of debt and financial crises as the global economy suffers its deepest downturn since the Great Depression.

China piloted a national digital currency in April 2020. The European Central Bank has convened a working group of major economies to coordinate digital currency research and development. The U.S. Federal Reserve said it was in the early stages of researching the digital dollar. Spurred by the potential to modernize domestic payments systems, or take a leading role in updating the global payments infrastructure that supports cross-border trade and remittances, nations around the globe are exploring the merits and risks of issuing a digital currency. While many are in the early stages of research, central banks representing one-fifth of the world's population say they will issue a digital currency very soon.

The Belfer Center’s Economic Diplomacy Initiative, in collaboration with the Atlantic Council’s Global Business and Economics Program, is tracking the latest developments in central bank issued digital currencies.

The U.S. approach toward China now relies on confrontation and accusation. Yet in diplomacy, as in war, the other side gets a vote. On May 22 China will convene two of its annual summits, the National People’s Congress and the Political Consultative Conference. The Communist Party will choreograph messages carefully: The collapse of communism in the Soviet Union casts a long shadow in Beijing, and Covid-19 came close to shaking the party’s legitimacy. In Chinese history, diseases, famines and other natural disasters have foretold the end of dynasties.

Ambassador Nicholas Burns, Roy and Barbara Goodman Professor of the Practice of Diplomacy and International Relations, Harvard University, discussed the effect the current pandemic has on the relationship between Europe and the United States with Atlantik-Brücke-Chairman Sigmar Gabriel.

President Trump is playing a tense poker game with Saudi Crown Prince Mohammed bin Salman. The stakes are America’s oil industry and the U.S.-Saudi alliance.

The 34-year-old prince and the president have been fast friends since Mr. Trump chose Saudi Arabia for his first foreign trip and received a lavish welcome. The president stood by the prince when he severed relations with Qatar, and again when he was accused of approving the murder of Jamal Khashoggi. But now the prince is threatening America’s oil industry, U.S. national security and Mr. Trump’s re-election prospects.

Stephen Walt and Bruce Schneier are two of the ten leading global thinkers that Foreign Policy invited to each give their take on an expansion of government powers as a result of the coronavirus pandemic.

Former U.S. lead climate negotiator Sue Biniaz shares her thoughts on the postponement of COP26 in this interview by Professor Robert Stavins. Stavins and Biniaz explore ways to reimagine future United Nations climate negotiations, unresolved concerns from COP25, and how the United States might approach rejoining the Paris Agreement.

This crisis is a massive global event in terms of its impact. Take an American perspective. Almost certainly more Americans will die of Covid-19 than have died in all the military conflicts of the past 70 years. Some respectable projections suggest that more may die than in all the wars of the 20th century.