The U.S. Federal Reserve is increasingly at risk of losing credibility — and for good reason. As Narayana Kocherlakota, former president of the Federal Reserve Bank of Minneapolis, recently argued, Fed officials seem to be balancing their stated aim of keeping inflation near 2 percent over the long term with a host of other, inexplicit, considerations.In public statements, officials have given some hints as to what these other considerations may be. They seem to include the risk of distortion in

Viewpoints June 1, 2016

If voters in the United Kingdom decide in the country’s referendum on June 23 to leave the European Union, it will not be for economic reasons. They may choose “Brexit” because they want full sovereignty, because they hate Brussels, or because they want migrants to return home, but not because they expect great economic benefits.The pro-Brexit camp initially appeared to be holding two strong economic cards. The first was U.K. citizens’ overwhelming rejection of their country’s net fiscal transfe

Viewpoints June 1, 2016

Japan would like to stabilize its rapidly aging population, and there are really only two ways to do that.It can let in tons of immigrants, or it can find some way to raise fertility. Otherwise, it had better resign itself to decades of sluggish economic growth, as hard-working young people are required to carry a larger and larger pyramid of retired old people on their backs. Its social security system will go bankrupt, the health care system will struggle, and interest rates might stay at zero

Viewpoints June 1, 2016

The accounting industry has faced criticism over its allegedly negligent audits on some corporate clients. Its responsibility has come under the spotlight in line with the recent woes in the shipbuilding and shipping sectors.A notable example is Daewoo Shipbuilding & Marine Engineering’s financial statements, which were audited by Deloitte Anjin, a local member of British firm Deloitte Touche Tohmatsu Ltd.Deloitte Anjin earlier issued an auditor opinion of “optimum” about DSME’s financial statem

Editorial May 31, 2016

STX Offshore & Shipbuilding has filed for court receivership after three years of futile turnaround efforts led by its creditors. Applying for court protection last Friday, the company asserted that its value as a going concern would be higher than that coming from sales of its assets.The bankruptcy court is expected to decide in a couple of months whether to allow the shipbuilder to start rehabilitation efforts or to liquidate it.The downfall of STX Shipbuilding highlights the flaws in creditor

Editorial May 31, 2016

Whether through signals from the Group of Seven meeting this week or in the outcome of the latest round of European negotiations on Greece, officials of advanced countries are increasingly acknowledging that the problems facing their economies require a new response to take over from the overlong use of narrow short-term tools.　This recognition has been too long in coming and, judging from the regrettable lack of credible and detailed action plans, still needs time to be translated into progress

Viewpoints May 31, 2016

Democrats pride themselves on their commitment to science. Citing climate change, they contend that they are the party of truth, while Republicans are “denialists.” But with respect to genetically modified organisms, many Democrats seem indifferent to science, and to be practicing a denialism of their own -- perhaps more so than Republicans. What’s going on here?The National Academies of Sciences, Engineering, and Medicine just issued a book-length report, strongly reaffirming what American and

Viewpoints May 31, 2016

One cause for Syria’s torments is that regional powers have used proxy forces to advance their position in the “great game” of influence, without regard for the effects on the Syrian people.An example is the standoff between two Syrian Kurdish militia groups. One, known as the YPG, appears to be tacitly backed by an odd coalition that includes the United States, and, less visibly, Russia and Iran. The other, much smaller group known as the Peshmerga of Rojava, or “Roj Pesh” is supported by Iraqi

Viewpoints May 31, 2016

Son Yeon-jae from South Korea is verifying her global competitiveness in rhythmic gymnastics, clinching five medals at an International Federation of Gymnastics World Cup in Bulgaria over the weekend.Son took bronze in the individual all-around, a gold in clubs, two silvers in hoop and ribbon and a bronze in ball during the Sofia competition.She is drawing close attention as to whether she will become the first Korean rhythmic gymnast to take an Olympic medal in Rio de Janeiro in August. Her pop

Editorial May 30, 2016

South Korea lagged behind some European countries whose per capita gross domestic product exceeded $50,000 in the 2015, according to the Organization for Economic Cooperation and Development.The nation, which ranks 28th in per capita GDP among OECD members at about $25,000, posted 2.6 percent economic growth last year -- behind Luxembourg, Iceland and Ireland. The three nations were included in the world’s top 10 per capita GDP ranking.Korea has usually exceeded the high-income countries in annu

Editorial May 30, 2016