The ‘liquidity trap’ with Chinese characteristics
BEIJING | June 2, 2015 | By Xu Gao via Caixin | Unless obstacles blocking the flow of capital to the real economy are cleared, the financial market will continue to be trapped.
monetary policy
China: caught in the trap of cautious monetary reforms
Iris Mir | China continues to struggle to avoid being swallowed by the challenges that stifle its stagnant economy while developing a new monetary policy. The IMF applauded the steps taken so far and no longer considers the RMB an undervalued currency. However China remains too cautious in its monetary reforms. Risking the country’s ambitions of further internationalize the RMB and the joining of IMF’s cherished Special Drawing Rights Basket.
China: Be prepared to pass the test of the Fed’s next rates hike
BEIJING | May 27, 2015 | By Caixin Editorial Team | Emerging economies have been bracing themselves for a rise in U.S. interest rates. Last week, the release of the minutes of the Federal Reserve’s policy meeting in April sparked another round of speculation about when the rate hike might begin. Most now expect a start date in December, rather than September.
The IMF tells the BoJ to hit the gas? What about the US Fed?
May 25, 2015 | By Benjamin Cole via Marcus Nunes‘Historinhas | The International Monetary Fund on May 22 badgered the Bank of Japan to adopt a more aggressive growth stance, even though the island nation posted Q1 real GDP growth of 2.4%, and an annual inflation rate of 2.3%—along with an unemployment rate of 3.4%.
If you don’t like quantitative easing, then look at Japan’s story
May 21, 2015 | By Benjamin Cole via Marcus’ Nunes Historinhas | If you don’t like quantitative easing, then consider this: The Nikkei 225, a broad measure of Japan’s stock market, is up 45.9% in the last 52 weeks.
The Fed should get smart and stop ‘targeting’ unemployment
SAO PAULO | May 15, 2015 | By Marcus Nunes via Historinhas | It´s such a bad ‘target’ that the Fed has been compelled to move the target frequently over the past couple of years, all the way from 6.5% to 5%-5.2%!
“Add cash” – When even market makers recommend to take some risk off the table
MADRID | May 12, 2015 | By Ana Fuentes | Easy money and negative yields are fueling an unprecedented, dangerous bubble: prices of assets, stocks, bonds and houses are more inflated than ever. Central bankers are noting (and warning against) it. Some market makers are following suit and recommend to reduce exposure to risk.
Ben Bernanke 2002: We need you
May 8, 2015 | By Benjamin Cole via Marcus Nunes‘ Historinhas | I have plugged for QE-offset or -financed tax cuts for a long time. I did not know that former Fed Chairman and now multi-millionaire consultant Ben Bernanke also explicitly believed in the same thing.
Responding to a slowing Chinese economy
BERKELEY | May 4, 2015 | By Barry Eichengreen via Caixin | Chinese policymakers could depreciate the yuan, try monetary expansion or turn to fiscal stimulus. They could also do nothing.
Hooray for the supply side! German labour market and demand
BANGKOK | May 3, 2015 | By Benjamin Cole via Marcus Nunes‘ Historinhas | I have complained before in this space about the macroeconomic defeatism seen among both left- and right-wing economists. We are told that due to demographics and lower productivity, future economic growth must be muted. Not so.