February 28, 2011 View this newsletter as a web page on CFR's website. Energy Market Regulation A new Working Paper on energy markets by Daniel P. Ahn distinguishes productive regulatory interventions from confused ones. Improved physical and financial transparency and centralized clearing can promote price discovery and reduce counterparty risks. By contrast, stricter capital and margin requirements and position limits are less fruitful. Despite calls for international cooperation on such issues, Ahn argues that in many cases the United States should proceed unilaterally. Michael A. Levi says that the world must plan for further oil price volatility, beginning with a coherent approach to strategic petroleum reserves. Working Paper: Energy Innovation Audio: 2/2 "Energy Innovation in Brazil, China, and India" with Michael A. Levi and Shannon K. O'Neil Dollar Dependency In this Policy Innovation Memorandum, Moritz Schularick discusses ways to reduce the world's dependence on the U.S. dollar. He recommends a novel policy tool called the excessive reserve procedure, which could lead to sanctions on countries that accumulate reserves beyond prudent levels. In addition, emerging market borrowers should be discouraged from taking on foreign-currency liabilities, thereby reducing the need for governments to build up reserves to protect themselves from foreign-exchange crises. Video, Transcript: 2/10 "Currency Wars" with Raghuram G. Rajan and Kenneth S. Rogoff Chart Book: Foreign Exchange Reserves in the BRICs U.S. Budget CFR experts examine the White House's proposed budget for FY2012. Sebastian Mallaby faults the administration for avoiding tax and entitlement reform while relying on implausibly optimistic assumptions about growth and borrowing costs. Laurie A. Garrett expresses concern that cuts to the aid budget will profoundly affect poor and war-ravaged populations. And Micah Zenko argues that cuts to defense spending do not go far enough. Micah Zenko and Rebecca R. Friedman argue against cutting foreign aid, which amounts to only 1 percent of the budget. Vigorous diplomacy is a cheap means to exercise global leadership. Geo-Graphics: Can the U.S. Cut Defense Spending? Analysis: The Ticking U.S. Debt-Limit Clock Big Bourse Mergers are Back Benn Steil's February column in Dow Jones' Financial News looks at the two big proposed transatlantic exchange mergers, arguing that, unlike the earlier round of high-profile tie-ups (when large takeover premiums were paid), these are being driven by recognition that all the big bourses are becoming uncompetitive in their once-core equity trading businesses.   CGS Website For the latest from the Maurice R. Greenberg Center for Geoeconomic Studies, visit the CGS webpage at www.cfr.org/cgs.     Must Reads In the new issue of International Finance, edited by CFR's Benn Steil, Bank of Japan governor Masaaki Shirakawa argues for a fundamental rethink of central banking philosophy in the wake of the financial crisis. Amity Shlaes compares Wisconsin governor Scott Walker's plan to curtail collective bargaining for public-sector unions to Calvin Coolidge's handling of a police strike in 1919 as governor of Massachusetts. Peter Orszag says that the United States should embrace lottery-linked savings accounts in its effort to raise household savings. Sebastian Mallaby discusses the merits of Paul Romer's case for "charter cities."     Meetings Video, Transcript: 2/14 "A Conversation with Azim H. Premji" Video, Transcript: 2/9 "Beyond Whole of Government: Public Private Collaboration to Achieve U.S. Foreign Policy Goals" with Timothy L. Fort, P.K. Keen, and Stanley S. Litow     Publications Expert Brief: Egypt's Uphill Economic Struggles Expert Brief: The G20's Continuing Policy Drift Chart Book: Economic Recovery     News from CFR.org Expert Roundup: Does Healthcare Reform Help U.S. Business? Interview: Iran's Protests and Economic Realities Interview: Demographics of Arab Protests Interview: Food Prices and Global Instability     About the CGS The Maurice R. Greenberg Center for Geoeconomic Studies (CGS) works to promote a better understanding among policymakers, scholars, journalists, and the public about how economic and political forces interact to influence world affairs. Sebastian Mallaby, Director of the Maurice R. Greenberg Center for Geoeconomic Studies Edward Alden, Bernard L. Schwartz Senior Fellow Caroline Atkinson, Adjunct Senior Fellow for International Economics Jagdish N. Bhagwati, Senior Fellow for International Economics James P. Dougherty, Adjunct Senior Fellow for Business and Foreign Policy Steven Dunaway, Adjunct Senior Fellow for International Economics Michael Hodin, Adjunct Senior Fellow Michael A. Levi, David M. Rubenstein Senior Fellow for Energy and the Environment Peter R. Orszag, Adjunct Senior Fellow Amity Shlaes, Senior Fellow for Economic History Matthew J. Slaughter, Adjunct Senior Fellow for Business and Globalization Benn Steil, Director of International Economics Francis E. Warnock, Adjunct Senior Fellow for International Finance EXPLORE CFR's WEBSITE:     Regions      Issues      Experts     Publications     About CFR Find CFR on Twitter and Facebook. Was this message forwarded from a friend? To subscribe, please visit http://www.cfr.org/about/newsletters.html and select "This Month in Geoeconomics." Privacy Policy The Council on Foreign Relations does not share email addresses with third parties. 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