Clik here to view.
Another look at the Chinese M1 gap – still a bit more room for easing
This morning the People’s Bank of China (PBoC) cut its key policy rate by 25bp to 5.1% – undoubtedly reacting to worries about slowing growth. The question is whether such a cut is warranted or not? I...
View ArticleClik here to view.
Malaysia has a freely floating Renggit – and thank god for that!
The Chinese surprise devaluation yesterday and has put currencies across Asia further under pressure. This is only a natural and the most stupid thing local Asian central bankers could do would be to...
View ArticleClik here to view.
The Christensen Media Blitz on the euro, ‘Open Borders’, China and ‘currency...
I have been in a bit of media blitz recently. Here is some of it: I have been on Russia Today’s Boom-Bust show to talk to Ameera David about the euro and why I think the euro is a Monetary...
View ArticleClik here to view.
The ‘dollar bloc’ was never an optimal currency area and now it is falling apart
Global stock markets are in a 2008ish kind of crash today and I really don’t have much time to write this, but I just want to share my take on it. To me this is fundamentally about the in-optimal...
View ArticleClik here to view.
China: It just got worse – more bad news and more policy mistakes
It is becoming increasingly clear that the Chinese authorities are mismanaging the economic and financial situation and the risk that the authorities will to cause something to blow increases day by...
View ArticleClik here to view.
Yellen is transforming the US economy into her favourite textbook model
When you read the standard macroeconomic textbook you will be introduced to different macroeconomic models and the characteristics of these models are often described as keynesian and...
View ArticleClik here to view.
The ‘Dollar Bloc’ continues to fall apart – Azerbaijan floats the Manat
I have for sometime argued that the quasi-currency union ‘Dollar Bloc’ is not an Optimal Currency Area and that it therefore is doomed to fall apart. The latest ‘member’ of the ‘Dollar Bloc’ left...
View ArticleClik here to view.
PBoC should stop the silliness and float the RMB
This is morning we got this news (from Bloomberg): China’s central bank conducted the biggest reverse-repurchase operations since September, adding funds to the financial system after money-market...
View ArticleClik here to view.
The cost of the Sino-US FX deal: Surging money market rates (in Hong Kong)
This is from Financial Times’ FT Fast this morning: A key lending rate between Hong Kong banks jumped to its highest level since February, potentially making it more expensive to short the renminbi....
View ArticleClik here to view.
The Trump-Yellen policy mix is the perfect excuse for Trump’s protectionism
It is hard to find any good economic arguments for protectionism. Economists have known this at least since Adam Smith wrote the Wealth of Nations in 1776. That, however, has not stopped...
View Article
