J. L. M. Campuzano (Spanish Banking Association) | The Fed raised rates yesterday, basically reducing the expansive nature of monetary policy. After listening to ECB board member Praet’s at a G20 meeting, it doesn’t look as if the ECB will raise rates quickly. But conditions could present themselves which favour a change in bias in monetary policy.
Is gold really the best hedge against risk and should we go back to the gold standard? Gold has been stable for a century, but in the last 50 years it has appreciated a lot, seeing a lot of volatility.
Yukon Huang via Caixin | China’s economic success over the past several decades coupled with America’s struggles to rebuild its economic base since the global financial crisis has spurred a debate about the relative roles for the state and market in guiding each country’s particular form of capitalism.
The Make in India campaign is an attempt to encourage foreign investment and manufacturing in the country in sectors such as aviation, automotive, steel and defense. Modi’s India finally seems to be walking toward a future where the traditional reliance on red-tape and high-level bureaucracy is fading in the minds of foreign investors.
As the global outlook improves, many people ask what’s happened to Larry Summer’s hypothesis of Secular Stagnation, which says there are clear signs that the economic world has been “cooling down” for decades. And currently, everything seems to make us think that the recovery we have on our doorstep is not going to be strong or long-lasting.
To succeed, China must start acting like a player instead of an economic sugar daddy that hides behind the principle of non-interference.
Without its own demography and without immigration, it’s impossible for the Trump administration’s forecast for annual US GDP growth of 3.5% over the next years to be met.
Justin Irving | A banal assertion is often made in the financial press when trade deficit figures are released. If the deficit widens, the financial media will tell you that this is bad for the current-quarter GDP number. If the deficit narrows, you’ll hear the opposite.
Barry Eichengreen via Caixin | During the U.S. electoral campaign, candidate Donald Trump repeatedly promised that he would brand China a currency manipulator on his first day in office. On Feb. 24 — his 36th day in office— President Trump then renewed his criticism, calling China a “grand champion” of currency manipulation.