Restructuring inside the PBOC

China Securities Times just reported that the PBOC will add a new department (si) in its organization to manage foreign exchange. It will be called the department of exchange rates (汇率司). At this point, its main duties will be to formulate recommendations on foreign exchange rates, monitor fx movements in and out of China, monitor […]

A Great Source on the Indian Economy

Ajay Shah’s blog is one of the best places to keep current on the Indian economy, particularly capital markets, exchange rates and monetary policy. Ajay writes very clearly and is forthright in his opinions and transparent in his analysis. Ajay also keeps tabs on other blogs, and a wide variety of news sources. Highly recommended: […]

More on India and the Doha Round

Friday’s Wall Street Journal also made India’s commerce minister the scapegoat for the failure of the talks (page A6 of the print edition). It quoted US and EU negotiators in putting the blame on Kamal Nath. Small concessions by the EU and the US are highlighted in the article, but the subtext of the article […]

Paul Krugman: Another Temporary Fix

Paul Krugman says “financial regulation needs to be extended to cover a much wider range of institutions” if we are to avoid “even bigger future disasters”: Another Temporary Fix, by Paul Krugman, Commentary, NY Times: So the big housing bill has passed Congress. That’s good news: Fannie and Freddie had to be rescued, and the […]

Market Cycles, Myths and “Free” Lunches

There’s been a lot of talk lately about market failure, although some of it, perhaps a lot of it has been misleading. The basic argument goes like this: finance has been relatively unregulated over the past generation, in contrast to the 50 or so years following the Great Depression, when the first round of government […]

We’re economic agents and we’re here to help

“Nothing is more terrible than ignorance in action.” – Abraham Lincoln. By all accounts, this is not an April Fool. Alistair “Northern Rock” Darling and Sir Win “Citigroup’s writedowns and credit costs ? $54.6 billion” Bischoff are chairing a Treasury-sponsored committee, the Financial Services Global Competitiveness Group (FSGCG), to report on the weaknesses jeopardising the […]

Companies need stable capital

There is an interesting article in yesterday’s Xinhua headlined “Capital shortages top risk for China’s SOEsOpen in a new window.” This seems at first counterintuitive given China’s rapid reserve accumulation, but the explanation may be in the article itself. According to the article: Lack of capital was the biggest risk facing China’s centrally-administrated State-owned enterprises […]

India, External Flows and Crisis Potential

Recently, in a post, my colleague Yin-Wong Cheung compared India and China’s reserves and capital inflows. India obviously looks less secure than China, since it has a current account deficit, and has relied more on portfolio inflows than FDI. But I think Yin-Wong’s assessment of India was too pessimistic. I also thought the comments on […]

India and the Doha Round

It was interesting to see very different perspectives on the cause of the Doha Round’s recent collapse. The Economist magazine is a defender of free trade, but came up with a very balanced analysis. Last week, it reported, in neutral language: “Broadly speaking, Europe and India are under attack for wanting to spare too many […]

10 Things to Understand About the Housing Bubble and the Debt Crisis

Highlights In time, history will provide a fulsome overview of the twin housing and debt crises, perhaps the most challenging debacle since the Great Depression. At this early stage, however, Westwood tallies a “top 10” list of underlying causes and considers what can be done to reverse the situation. Ranging from an unprecedeted level of […]

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