China has think tank quantity, but not quality
BEIJING | March 13, 2015 | By Fan Bi via Caixin | The country has the second-most think tanks in the world, but their weak research reports are not much use to policymakers.
World economy
Emerging markets = Investors’ Achilles heel
The Corner | March 11, 2015 | The market still points to emerging markets as one of the most vulnerable areas in the global economy. The absence of a rebound in the price of commodities (despite oil’s recent revaluation) is hampering these countries’ economic recovery.
Global debt: The new bubble
Intermoney | March 6, 2015 | From 2007-2015, global debt has increased 289% in excess GDP. The rapid increase of global indebtedness and financial asset prices could actually be defined as a global bubble with a major destabilizing factor: the significant surpluses accumulated by certain countries that force others to adopt a deficit position. International liquidity growth has only raised the volume of speculative money flows, which are now able to destabilise any economy, regardless of their economic virtues.
Morning briefing: China cuts rates
The Corner | March 2, 2015 | The weekend decision of the Chinese Central Bank to cut benchmark lending and deposit rates by 0.25% is geared towards staving off deflation in the country´s slowing economy.
Central bankers waiting to see who will jump first
The Corner | February 28, 2015 | The fall in oil prices may yet push the Bank of England to raise rates, which it has been keeping at 0.5% since March 2009. It currently owns the equivalent of 25% of UK’s nominal GDP (see graph above).
Janet Yellen may soon run out of patience
MADRID | February 26, 2015 | By JP Marín Arrese | The FED is back in business after years of loose monetary policy aimed at redressing an ailing economy. With the business climate markedly improving, the time is ripe to raise rates. Yet, Janet Yellen has repeatedly warned against a swift hike, instead emphasising the need for patience until the upward trend is solidly anchored. In her testimony before the Senate Committee, she noted that policy would only cover the next two FOMC meetings, sparking speculation that the move could well start in June.
Poland never really understood why it didn’t crash in 2008
SAO PAULO | February 24, 2015 | By Marcus Nunes via Historinhas | It took three years, but in late 2011 Poland finally botched up and went the way of the majority of countries, letting NGDP fall way below trend. They didn’t (correctly) react to the 2007-08 oil price rise, like the US, UK, EZ, etc. and fared well, but didn’t resist when oil prices picked up again in 2010-11, when, among the initial group, only the ECB was dumb enough to react.
A different kind of crisis, a different kind of reform
By Barry Eichengreen via Caixin | The reform response to the financial crisis was mild compared to that of the Great Depression, but all is not lost.
‘One belt, one road’ and how China aims to lead trade between Asia and Europe
Iris Mir | China aims to recover the ancient Silk Road to create an unprecedented trade link between Asia and Europe. Least developed Chinese provinces would also benefit largely from the ‘one belt, one road’ project as Beijing will need to invest greatly in infrastructure and high-speed railways. Local governments see the project as a golden opportunity to revive stagnating growth.
Swiss Leaks: 4,000 Spaniards under the spotlight for estimated €1.8 billion
MADRID | The Corner | F1 pilot Fernando Alonso and Santander bank deceased chairman Emilio Botín, both great ambassadors of the Spain brand, are among the 4,000 Spaniards helped by HSBC to evade taxes. As online newspaper El Confidencial revealed, an estimated €1.8 billion ($2.8 billion) was concealed by Spanish citizens in Swiss bank accounts between 2006 and 2007.