The days of U.S. boycotts of South Africa are long gone. The country is an economic powerhouse in Africa and a key economic partner for the U.S. In four years as U.S. ambassador to South Africa, Donald Gips ’89 worked to increase investment and trade flows between the countries.

More and more, the answer is yes, as the credit card industry reaches billions of consumers and tens of millions of outlets. The CMO of MasterCard WorldWide talks about the company’s efforts to compete in this global market while responding to radically different technological infrastructures, legal institutions, and cultural understandings of debt.

The Federal Reserve’s policy of open-ended quantitative easing emphasizes short-term tactics over longer-term strategy, writes Stephen Roach. “The focus, instead, should be on accelerating the process of balance-sheet repair, while at the same time returning monetary and fiscal policy levers to more normal settings.”

The increasing complexity of financial instruments, the growing globalization of markets, and the increasing scale of major financial institutions all collided in the financial crisis of 2008. Has the crisis changed the markets for good? Should we expect major shifts in the long-term returns and volatility of different asset classes? What are the long-term consequences of automated trading, globalization, and other macro-trends? 

Languages differ in how much they distinguish between the present and the future. Professor Keith Chen found that speakers of languages that do not rely on the future tense make more future-oriented choices, including saving more money, retiring with more wealth, and smoking less.

Any large organization has multiple stakeholders with different needs. And a truly global business has to deal with tremendous variation in cultural and regulatory contexts. For example, in the U.S., per capita credit card penetration is 2.5—meaning there are more than 2 credit cards for each person in the country. In Saudi Arabia, where Islam forbids the use of credit, the penetration rate is .04. How can a company cope with exponentially increasing complexity as it moves to more and more markets? And are there some businesses that don't translate easily—or at all—across borders?

UK Prime Minister David Cameron promised that, if reelected, he will hold a referendum on whether the country should stay in the European Union. Yale SOM's David Bach argues that this move is likely to produce just what a struggling economy doesn't need—more uncertainty.

Professor Marissa King mapped the geographic patterns of the use of antidepressants, antipsychotics, and stimulants across the United States. She identified large regional clusters, centered on Tennessee, where use of these drug classes were elevated.
 

Guilt may be a key mechanism for enhancing pleasure, according to new research co-authored by Professor Ravi Dhar.

A new working paper co-authored by Professor Peter Schott links the sharp decrease in U.S. manufacturing employment after 2001 to a substantial shift in U.S. trade policy towards China in late 2000.

Technology and globalization have radically changed the way many people do business, but do such concrete considerations also drive creative undertakings? Economist Tyler Cowen discusses the brave new world of cultural production and the increasingly demanding consumer on the receiving end.

The cost to produce energy from renewable sources, such as wind and solar, has fallen dramatically in recent decades, but so has the cost of natural gas. Daniel Gross, a renewable energy investor, discusses what it will take to make wind and solar cost-competitive.

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Nathan Novemsky, professor of marketing, explains to his Problem Framing course how Prospect Theory–the series of ideas and experimental observations that lie at the root of behavioral economics–elucidates one of the psychological biases that can cause people to approach the same problem in very different ways. Understanding these biases can help one see problems more clearly.

Esther Duflo, a development economist at MIT and director of the Abdul Latif Jameel Poverty Action Lab, explains how our understanding of the economic lives of the poor has grown more complex in recent years. While Duflo doesn't see any silver bullet that will end poverty, she points to progress, in part from the use of randomized control trials to solve specific problems.