Hints and tips:
...SF: You wrote earlier this year that the long period of lax monetary policy had created increased systemic risks. The context for that was the turmoil around Silicon Valley Bank, et al....
...That global macroeconomic movements this year have been in large part due to the United States Federal Reserve is so obvious that this paragraph is pointless....
...A macroprudential-bulletin by ECB staff (Adachi et al, May 2020), noted that Libra could become a US$3tn collateral silo. Another alternative exists....
...As Copeland et al noted in 2015: A complete unwind of all repos, and not merely of those maturing, is an operationally simple process....
...America creates about a quarter of global GDP, but well over half of the currency reserves of the world's central banks is socked away in dollars — $6.6tn of $11.4tn....
...Now, nearly 18 per cent of all Chinese exports are designated for BRI-linked shores, per Lau et al. again: Larger, more economically fortified countries may be able to better manage these imbalances....
...More modern models, such as that by Enders et al, confirm that these results are likely in interest rate markets after a big fiscal shock....
...This was disproved by the trial of US v Zarrab et al, in which a Turkish banker and a gold trader were convicted of laundering Iranian oil and gas revenues....
...On my reckoning, other results in the Engel et al paper indicate that the QE programme increased US equity prices by 11-15 per cent, and reduced the dollar effective exchange rate by 4.5-5 per cent....
...(FT, Guardian) China forex down China’s foreign exchange reserves unexpectedly fell below the closely watched $3tn level in January for the first time in nearly six years, even as authorities tried to curb...
...I will discuss the economic effects of protectionism another time. —————————————————————————————————— Footnotes [1] Ricardo Caballero et al have published similar work, and John Cochrane has responded...
...Sensible sentences from Citi’s Buiter et al on China’s valuation shock (with our emphasis): This decision by the PBOC is a significant event, even if its implications and motivations are not yet fully clear...
...That makes China’s leaders v nervous and restricts policy options....
...al thesis is that monetary policy would have been even more effective if only the government hadn’t borrowed so much....
...The question is whether that benefit would look so attractive were JPMorgan et al forced to internalise most of the costs of a breakup while remaining in their current form....
...Current and Capital Account Flows, Foreign Exchange Reserves, and Inflation....
...Blanchard et al. point out that if central banks permanently raised their target inflation rates from 2% to 4%, it would leave them scope to make deeper cuts to real interest rates in severe downturns....
...Good morning New York, FT ALPHAVILLE Naming and shaming in Japan: David notes another angry reflection of how important rising wages are to Abenomics’ success and how irritated Abe et al are at those big...
...Kahn, Kansas City Fed Doubling Your Monetary Base and Surviving: Some International Experience – Anderson et al, St Louis Fed The Federal Reserve’s Balance Sheet and Earnings: A primer and projections –...
...No surprise to see GMO et al flag up “impact on third parties” from the start....
...Overall, Koo thinks that barring any reckless experiments in monetary policy, Abe et al might actually be able to pull Japan out of its twenty year balance sheet recession....
...Gerlach-Kristen et al use the example of Japan’s foreign exchange interventions in 2003-04 to illustrate their point....
...Masterpieces of Chinese Painting: 700-1900, edited by Zhang Hongxing, V&A Publishing, RRP£40/$60 The world’s oldest painting tradition explored in the glorious catalogue to the V&A’s current, once-in-a-lifetime...
...Did Operation Twist manage to suppress some of the inflation-paranoia generated by the likes of Ron Paul, Zerohedge, Jim Rogers, Peter Schiff et al, who previously made an explicit point of calling QE “money...
...According to Cassola et al. (2009), banks submitted more aggressive bids in order to make sure that they receive at least a minimum level of liquidity....
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