A year ago, Chinese President Xi Jinping appeared to be living what he called the “Chinese Dream.” China’s economy seemed strong, its military power was growing, and Xi was aggressively consolidating domestic political power.　But Xi is off to a bad new year. The Chinese economy is slowing sharply, with actual GDP growth last year now estimated by U.S. analysts at several points below the official rate of 6.5 percent. The Chinese stock market has fallen 15 percent this year, and the value of its

In “Capital in the Twenty-First Century,” the French economist Thomas Piketty highlights the striking contrasts in North America and Europe between the Gilded Age that preceded World War I and the decades following World War II. In the first period, economic growth was sluggish, wealth was predominantly inherited, the rich dominated politics, and economic (as well as race and gender) inequality was extreme.　But after the upheaval of WWII, everything changed. Income growth accelerated, wealth was

Making New Year‘s predictions is tricky in this turbulent world, but here’s one fairly safe bet: The next president will propose a more assertive U.S. foreign policy. Hillary Clinton, the likely Democratic nominee, has often sounded nearly as hawkish about use of military force as the Republican contenders.　But what would a new American assertiveness mean, in practical terms? What can U.S. military power do, realistically, to combat the Islamic State and other threats more effectively? How can C

Germany has rallied Europe in support of Ukraine-related sanctions against Russia, but has been less diligent in their implementation. German leaders back these ineffectual measures primarily to humor the U.S. and are rightly unwilling to suffer too much for them.　In a recent speech to her CDU party, which ended with a nine-minute standing ovation, Chancellor Angela Merkel said of the sanctions: It was the right reaction, no matter how much we’d like to keep a good relationship with Russia. We m

I may not be the only finance professor who, when setting essay topics for his or her students, has resorted to a question along the following lines: “In your view, was the global financial crisis caused primarily by too much government intervention in financial markets, or by too little?” When confronted with this either/or question, my most recent class split three ways.　Roughly a third, mesmerized by the meretricious appeal of the Efficient Market Hypothesis, argued that governments were the

Some people here have urged the Hong Kong government to try and join the Trans-Pacific Partnership since the U.S.-led free trade pact became official earlier this year.　Those who support this idea include three types. The first type is those who are politically naive and think it is necessary and easy for Hong Kong to join the TPP simply because it is one of the freest open market economies in the world. The second is those who are capable of political thinking, but only to a certain point. They

Earlier this week, markets made clear how little they think of China’s attempts to revamp the giant, state-owned companies that dominate its economy. After the government approved the merger of two massive shipping groups, two of their listed subsidiaries swiftly shed more than $850 million in value Monday. Investors appear to appreciate something the regime doesn’t: Simply tweaking the structure of state-owned enterprises -- professionalizing their management, inviting in private investors and

Russian President Vladimir Putin’s intervention in the Syrian conflict has been welcomed by some as a moment for the Kremlin to “come in from the cold.” Russia’s conflict with the Islamic State, the argument goes, has aligned the country’s interests with those of the West. Even Turkey’s downing of a Russian warplane does not seem to have deflated this optimism.　Indeed, at a recent press conference, U.S. President Barack Obama again urged Putin to join the alliance against the Islamic State. And

Was the San Bernardino shooting an act of terrorism or workplace rage? It doesn’t really matter, in terms of the need for better regulation of assault rifles and semiautomatic weapons.　The growing evidence that this latest attack was terrorism should galvanize a citizen movement to demand better protection against such mass shootings, whether they’re the work of Muslim extremists, enraged antiabortion militants or mentally unstable loners. 　“Enough is enough,” said President Obama after the shoo