[Editorial] Constraints on FX policy

Korea has avoided being designated as a “currency manipulator” by the United States, but the government needs to be more cautious in undertaking foreign exchange operations, as Washington has put the nation on its “monitoring l...

[Editorial] Bank recapitalization

A debate is raging over how to recapitalize the two state-run banks that have to lead the government‘s corporate restructuring process.The Korea Development Bank and the Export-Import Bank of Korea are in urgent need of capital i...

[Cass R. Sunstein] The mistake that most traders make

Do investors suffer from behavioral biases? New research demonstrates that they do: They think that a crash is far more likely than it actually is. After you read the newspaper, you might well overreact to bad news about the marke...

[Mohamed A. El-Erian] Bank of Japan finds it can’t win

Pity the Bank of Japan. Disappointed by the central bank’s decision at Thursday’s policy meeting to delay further stimulus measures, markets pushed the yen higher, making exports less competitive, and drove share prices lower, w...

[Jeffrey D. Sachs] Shift to clean energy calls for new politics

The diplomats have done their job, concluding the Paris climate agreement in December. And political leaders gathered last week at the United Nations to sign the new accord. But implementation is surely the tough part. Governments...

[Jean Pisani-Ferry] Don’t do stupid economic stuff

On Aug. 30, 2013, the United States was about to launch air strikes on Syria, where more than a thousand civilians had died in a sarin gas attack perpetrated by the army of President Bashar al-Assad. But a few hours before the str...

[Mark Buchanan] Why we fear spiders more than climate change

People tend to fear spiders and snakes more than they do electrical sockets or fireworks, even though the latter present a far greater danger. This might help explain why humans have such a hard time seeing the threat of climate c...

[Editorial] Park in Iran

There are two major points President Park Geun-hye is focusing on in her current historic visit to Iran: economic cooperation and nonproliferation vis-a-vis North Korea. Park, who arrived in Tehran on Sunday as the first South Kor...

[Editorial] Self-ruining greed

Korea’s workforce is so polarized that unionized workers at big conglomerates are often called “labor aristocrats” as they enjoy privileges their counterparts at the bottom of the labor market -- workers at small firms, part-ti...

[Shamshad Akhtar] Increasing Productivity Key to Asia and the Pacific

The Asia-Pacific region’s successful achievement of the 2030 Agenda for Sustainable Development needs to be driven by broad-based productivity gains and rebalancing of economies toward domestic and regional demand. This is the ma...

[Howard Davies] Why are central banks on trial again?

Central banks have been on a roller-coaster ride in the last decade, from heroes to zeroes and back again. Is another downswing in their fortunes and reputations now starting?In 2006, when Alan Greenspan retired after his 18-year ...

A second life in space for Cold War nukes

In the tradition of turning swords into plowshares, it’s an appealing idea: converting the U.S.’ ballistic missiles into rockets for civilian space transport. It’s also a sensible one -- and Congress should change the law to ma...

[David Ignatius] Slow and shaky takeoff for Mosul offensive

From a sandbagged hilltop outpost here, you can see the front line of the Islamic State group in the muddy brown houses of Al-Nasr, a village on the next ridgeline, about a mile and a half west. The Iraqi army was supposed to have...

[J. Bradford DeLong] Rescue for stranded economies

For countries where nominal interest rates are at or near zero, fiscal stimulus should be a no-brainer. As long as the interest rate at which a government borrows is less than the sum of inflation, labor-force growth, and labor-pr...

[Editorial] More stimulus

The government has designated May 6 as a temporary holiday, allowing people to take a four-day break from May 5, which is Children’s Day in Korea.The designation is intended to boost the economy by stimulating sluggish domestic c...