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looking beyond borders

foreign policy and global economy

Archive for the tag “banking”

Why China Isn’t Cutting Lending Rates Like The Rest Of The World

China’s central bank must manage an economy structured in many ways quite differently from that of other major regions, such as Japan or the European Union. But the PBoC faces the same question of how effective monetary policy can be today. That has significant implications for the central bank’s signalling, which appeared to take a neutral stance on Monday.

Read Here – CNBC

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The Anatomy Of The Coming Recession

Unlike the 2008 global financial crisis, which was mostly a large negative aggregate demand shock, the next recession is likely to be caused by permanent negative supply shocks from the Sino-American trade and technology war. And trying to undo the damage through never-ending monetary and fiscal stimulus will not be an option.

Read Here – Project Syndicate

Europe’s Dream: Escaping The Dictatorship Of The Dollar

Trump’s hostile behaviour is reinvigorating efforts to turn the euro into an alternative to the world’s dominant currency. If only the Europeans could find some way to do it.

Read Here – Foreign Policy

How Inflation Could Return

After years of low inflation, investors and policymakers have settled into a cyclical mindset that assumes advanced economies are simply suffering from insufficient aggregate demand. But they are ignoring structural factors at their peril.

Read Here – Project Syndicate

Desperate Chinese Middle Class Take Big Risks To Move Money, And Themselves, Overseas

A growing number of Chinese have rushed to obtain long-stay visas or property in friendly foreign countries as an insurance policy against a worsening of domestic conditions. Spurred on by a lack of investment options at home and rattled by the sweeping anti-corruption campaign of President Xi Jinping, those with significant assets are looking for ways to move their money overseas, by legal means or otherwise.

Read Here – South China Morning Post

How The Next Downturn Will Surprise Us

Over the past decade, the world’s largest central banks — in the United States, Europe, China and Japan — have expanded their balance sheets from less than $5 trillion to more than $17 trillion in an effort to promote the recovery. Much of that newly printed money has found its way into the financial markets, where it often follows the path of least regulation.

Read Here – The New York Times

How the Tariff War Could Turn Into The Next Lehman

Ten years ago this week, Lehman Brothers filed for bankruptcy, and the world suddenly changed. That date, Sept. 15, 2008, was hardly the starting point of the Depression-sized financial crisis that would soon threaten to sink the entire world economy; it had begun more than a year earlier. But most scholars agree Lehman’s failure marked the moment when everyone realized at once that the so-called experts had no idea how deep the interconnections ran.

Read Here – Foreign Policy

The Global Economy Ten Years After

Photo by Marc-Olivier Jodoin on Unsplash

In the decade since the collapse of Lehman Brothers and the start of the global financial crisis, the world economy has registered stronger growth than many realize, owing in large part to China. But in the years ahead, global economic imbalances and troubling trends in the business world will continue to pose economic as well as political risks.

Read Here – Project Syndicate

China Has No Idea How To Play Trump, And Is Doing What It Always Does When It Smells Trouble

Thanks to US President Donald Trump and his “America first” policy, the global economic and trade outlook perhaps has never been so uncertain. Nowhere are these economic and policy shock waves being felt more than in China. And, Beijing is responding the same way it does every time it anticipates trouble – by pumping cash into its system.

Read Here – South China Morning Post

Extraordinary Measures For Ordinary Times

The legacy of 2007 is still with us. Its most devastating and destructive effect was to put a premium on unconventional monetary measures. Unfortunately, when policymakers scrambled in search of “big bazookas” ten years ago, they set the stage for the return of an old character: a strongman willing to pull the trigger.

Read Here – Project-Syndicate

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