The markets sway to the rhythm of the central banks, but it’s not clear that monetary policy alone can solve the serious economic problems affecting most of the planet. Perhaps it would be a good thing to take heed of Summers idea that it is preferable to back productive investment and not the creation of bubbles supported by low interest rates.
BARCLAYS | The 13th Five Year Plan (13FYP), the first to be produced under President Xi’s leadership, covers the period 2016 – 20. Despite some recent policy ‘hiccups’, we believe that the Chinese government remains committed to further reform and opening up of the economy.
Brazil is an old hand at “catching up” with the rich developed countries, never fulfilling its dream of long-term prosperity. This is partly due to the vicious circle in which the emerging markets find themselves, the origin of which lies in the lack of investor confidence.
Yang Gang via Caixin | China also has second-most household wealth after the United States, according to an annual report by researchers at Credit Suisse Group, a leading global financial services company.
Following the oil price slump, both wealthy countries will relatively see their privileged economic position trimmed, but they can still capitalize on their status as oil producers, boosting production to defend market share and leading the European M&A market, respectively.
The free-trade agreement between the U.S., Japan and another nine Asia-Pacific countries (TTP) should speed up the negotiations between the European Union and the U.S. regarding The Transatlantic Trade and Investment Partnership (TTIP). These talks started over five years ago and there have been, and continue to be, some critical moments.
Alberto Forchielli via Caixin| The BRICS, MINT and others are nice, but CIVET is better because it has Vietnam, the happy exception to recent slowdowns.
James Alexander via Historinhas | There is only monetary policy, defined as the value of money relative to real goods and services. All else is just tools: official short term policy rates, IOER, targeting or guidance, QE, fiscal policy. In the “monetary offset”, the tool of expansionary fiscal policy is offset if the overarching policy tool is inflation targeting.
PARIS | Francesco Saraceno | What I’d like to express here is my jealousy for the discussions (and the confrontation) that we observe in the US about rate rises. These discussions are a sideproduct, a very positive one if you ask me, of the institutional design of the Fed.
JOHN BRUTON | An agreement between the US and European Union would have benefits for both sides of the Atlantic. For example, it would open the US Federal, State and local governments market to European tenders, who are now discriminated against by “buy America” rules, which deliver poor value to US taxpayers.