It may seem strange that one of the primary forces behind the Bretton Woods arrangement was John Maynard Keynes. That is because what goes on in his name today is often nothing like what he proposed. This is not an endorsement of those ideas, only recognition and deep appreciation that during the worst consequences of the worst kinds of economic [...]
Did CNY flash crash yesterday? That it is even being contemplated and argued is itself an indication of these times. According to pretty much all market data, CNY fell below 7.0 to the dollar just prior to the US open. It had been trading its usual (for the past week or so) artificial, non-volatile sideways at around 6.96 when for [...]
There are usually ceteris paribus assumptions lurking behind every mistaken impression in economics, including monetary economics. If Central Bank X does Y, where Y is a plus sign it is believed to be “accommodation” or “loosening.” Rarely if ever is there an account of money outside of this condition, except in only the most extreme of circumstances. In the past, [...]
The fact that China did something will always be treated with hyperventilation, but lately that includes an almost bi-polar nature. Last week, the PBOC branch in Shanghai made what looked to be a “tightening” gesture upon Chinese stocks, ordering commercial banks, in a memo, to check for risks in margin debt. They also banned margin on unregulated accounts and “suddenly” [...]
Stay In Touch