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.
UBS | We believe China and Japan will play significant roles as regional economic patrons over the next few years. We estimate the amount of patro – dollars, namely China’s outward direct investment in the ‘One Belt One Road’ regions, will exceed US$200bn in 2016 – 18.
In December 1985, Thomas Sargent spent some time in Brazil, giving speeches and talking to policymakers. Back home in January 1986, he published in the WSJ an Open Letter to the Brazilian Finance Minister: …When you have exhausted all of your opportunities to borrow, you will have to make one or more of unpleasant adjustments such as taxes rises, government expenditures cuts or default on some of you debt…
Yue Yue and Zhang Yuzhe via Caixin | Chinese investors have warmly welcomed a surge in corporate bond issues as attractive alternatives to the nation’s stock markets, where values have plunged in recent months.
Based on our latest in-house banking survey, sentiment towards the banking sector has deteriorated further over the past quarter. The decline in expectations on the banking outlook reflected rising global growth concerns, uncertainty over Fed funds rates, as well as volatility in commodity prices and currencies.