I had deliberately labelled this part 4. The first three parts appeared in May 2009. See here, here and here. Good friend Sushant sent me this post in ‘Foreign Policy’. It rehashes many old theories and expressions. That is why I had linked to all the three previous posts I had made on this topic. [...]
Geoff Dyer of the FT raises some questions on whether the Renminbi is really ready to become an international currency. I doubt if China desires that outcome any time in the near future. For now, it is just in a desperate mode about the US dollar and is trying to camouflage it with some bravado. [...]
In fact, I would go one step further. America could continue to work towards dollar depreciation without the fear that it would go into a free-fall since China would keep throwing sand in the wheels of the weak dollar juggernaut. Of course, that is the world of 2003-07 except that commodities, inflation and higher bond [...]
In recent weeks, there has been plenty of talk about the renminbi replacing the dollar as the global reserve currency. It was primarily triggered by the New York Times Op-Ed piece by Prof. Roubini, after his visit to China. It can be read here as well.
I suspect that the piece had more to do with [...]
I missed this one and caught it accidentally. The FT report says that Fed staffers have said that the economy needed a negative interest rate of -5.0%. Perhaps, it meant a negative real rate. One cannnot generate a negative nominal rate. One can generate a negative real rate with commensurate inflation.
Wonder if this marked the [...]
At VoxEU, a doctoral candidate in economics has an interesting http://www.voxeu.org/index.php?q=node/3490#mce_temp_url# on what France did to the pound sterling and to the US dollar. The conclusions are not exactly reassuring
Most commentators have either gloated over or bleated at the paper that the governor of the People’s Bank of China posted on the central bank’s web site, calling for a super-sovereign reserve currency. The truth, as always, is duller. I shall refrain from saying more here as I intend to develop my arguments fully for [...]
Sitting in a hotel room in Qatar waiting to catch a 2 AM flight to Singapore after a gruelling 10-day trip to Switzerland and the Gulf, I was catching up with emails and reading archived reports sedately. Financial markets were sleepwalking through the day. Gold was selling off.
Then, the Federal Reserve came up with its [...]
Bare Talk at Mint
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