Quantitative Tightening, Who’s worried?
As the Fed moves towards monetary tightening, financial markets have started to not only consider the implications of higher policy rates but also the impact th...
Author: theasianhedgehogandthefox@gmail.com
Curated Reads (Jan 2022) – Revisiting the secular amidst cyclical flux and monetary policy uncertainties
Financial markets’ gyrations over the recent past have been dominated by shifting views over global monetary policies – with many central banks changing their g...
Contemplating Investment Regimes (Part II) – Conditions that will lead to a Change in the Global Growth/Inflation Regime
Introduction Discussions over the likelihood of a regime change in both the global economy and financial markets have intensified. Commentators speculate that w...
US Rates – What to Consider beyond the Reflation Narrative?
The trajectory of US interest rates depends on changes in expectations over its i) term structure and ii) term premia. We explore what truly matters for rates f...
Monetized Fiscal Expansion – Principles & Core Arguments. Conditions, Constraints, & Potential Implementation
Synopsis There has been a clear shift towards growing acceptance of “unorthodox” stimulative fiscal economic policies lately as reflected in both The Economist ...
Curated Reads (wk 25th Oct)
The New World Order The case for re-electing Donald Trump (Financial Times) The three pillars of US foreign policy under Biden (Financial Times) Most Nato...
Curated Reads (wk 11th Oct)
On Global Re-balancing The Return of Big Chinese Surpluses (And Large U.S. Deficits) (Brad Setser) https://www.cfr.org/blog/return-big-chinese-surpluses-and-lar...
The Intricacies behind PBoC’s Policy Stance
Balance Sheet Expansion is not Everything The lack of PBoC balance sheet expansion since the Covid-19 pandemic stands in contrast with that of advanced economie...
Thoughts on the Fed’s New AIT Framework
1. Negative real rates essentially becomes an explicit policy objective. 2. The new policy introduces an element of a ‘make-up’ strategy to inflation but charac...
Debate on Global Imbalances/Capital Restrictions/Income Distribution
an Our reaction to an intriguing debate held by the Jain Family Institute (twitter thread link below). Moreover, we do not think the idea of endogenous money or...