In 2021, few experts saw conflict in the Taiwan Strait as imminent in the coming years. However, following former U.S. House Speaker Nancy Pelosi’s visit in summer 2022 and Taiwan’s recent elections, the military and political situation has grown more tense.
This rise in tension seems like it would dramatically increase concerns about war among the Taiwanese public, but survey data show citizens are not panicking. Lev Nachman, Shelley Rigger, and Nathan Kar Ming Chan explain what this finding means for Taipei and Washington.
In 2021, 57.4% of Taiwanese survey respondents said they were worried a cross-Strait war. In 2023, 64.8% of respondents reported that same worry—only a modest increase, despite China's significant increase in military activity in the Strait.
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U.S. bank stress testing. Following the global financial crisis of 2007-2009, the use of annual stress tests to set minimum capital requirements for large banks was a critical innovation. But now, with stress testing becoming a more routine and predictable process, should it still be the basis for large bank minimum capital requirements? Former Federal Reserve Governor Daniel K. Tarullo weighs in.
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