Asia’s Strongmen And Their Weak Economies

Many people seem to believe that authoritarian rulers deliver better economic results. And yet, with the possible exception of China’s Xi Jinping, Asia’s autocrats, from India to the Philippines, are presiding over increasingly fragile states and even more vulnerable economies. Read Here – Project Syndicate

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U.S. Deficits Are Hurting Emerging Markets

Thanks to the dollar’s outsize global role, the first casualties of a somewhat irresponsible U.S. fiscal policy are likely to be emerging economies that have used the dollar to denominate their debts, not the United States itself. A stronger dollar and rising U.S. interest rates are increasing the burden of paying all dollar-denominated debts around the world. […]

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The Secret History Of The Banking Crisis

The new central bank network created since 2008 is of a piece with the new networks for stress testing and regulating the world’s systemically important banks. The international economy they regulate is not one made up of a jigsaw puzzle of national economies, each with its gross national product and national trade flows. Instead they oversee, […]

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Rest Assured. China Has Its Economy’s Back

The People’s Bank of China has surprised many with its tolerance for market pain as it squeezes leverage in parts of the financial system. But rest assured, China won’t clamp down so hard it endangers President Xi Jinping’s goal to keep growth above 6.5 percent, according to economists from Morgan Stanley, Mizuho Securities and Oxford Economics. […]

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The Battle Of Three Centuries

Twenty years ago next month, the British government gave the Bank of England the freedom to set interest rates. That decision was part of a trend that made central bankers the most powerful financial actors on the planet, not only setting rates but also buying trillions of dollars’ worth of assets, targeting exchange rates and […]

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Fed Raises Rates, But Smooth Liftoff Doesn’t Signal Mission Accomplished

The Federal Reserve deserves praise for managing once again to carry out a tricky transition without causing disruptions in financial markets and creating too much risk for the real economy. Sustaining this success will require more than just the central bank’s continued responsive policy making, Mohamed El-Erian writes for Bloomberg. Read Here – Bloomberg

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We Live In A Bearish World

At HSBC’s global investment seminar in New York last week, some of the top strategists from Europe’s largest bank laid out their outlook for global markets and economies. Many strategists are not expecting the current recovery from the financial crisis to be as impressive as what has come before, while some investors aren’t expecting double-digit […]

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China Has Lots of Treasuries, Not Much Leverage

During the last U.S. presidential election, an editorial in a Chinese state-run newspaper declared that if Washington insisted on flouting Chinese interests (by selling arms to Taiwan, for example), Beijing should “use its financial weapon to teach the U.S. a lesson.” Three years later, America owes even more to China than the $1.16 trillion it owed then. […]

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