Great Graphic: Asia’s Decline as an Export Machine

This Great Graphic was posted on Barry Ritholtz’s  Big Picture blog.  He found it in the Wall Street Journal, which it got from Thomson Reuters.  The chart depicts year-over-year growth in quarterly exports from the four large East Asian economies.  Using quarterly instead of monthly data arguably helps reduce the noise to signal ratio. The graph shows that Asian […]

Reducing Risks in Asia With Macroprudential Policies

By Edda Zoli: Booming real estate markets, rapid credit growth and—at least before the Fed’s tapering announcement last year—sustained capital inflows have raised financial stability challenges across many parts of Asia. To address them, policymakers have increasingly made use of macroprudential policies that address the stability of the financial system as a whole rather than that […]

China’s Currency Conundrum

It seems the People’s Bank of China (PBOC) cannot win. In late February, the gradual appreciation of the renminbi was interrupted by a 1 per cent depreciation (to $1:¥6.12). Though insignificant in overall trade terms, especially when compared with the volatility of floating exchange-rate regimes, the renminbi’s unexpected weakening sparked a global furor. This is […]

TPP and the Principles for Governing International Trade

The success of President Obama’s swing through Japan on his Asia trip last week, he is supposed to have told Prime Minister Abe in The Hague recently, would be measured by whether it delivered a satisfactory conclusion to the Trans Pacific Partnership (TPP) negotiations between Washington and Tokyo. On that metric, the trip was an […]

China’s Place in the Global Economy

Last week’s announcement that China’s GDP grew at an annualized rate of 7.4% in the first quarter of this year has stirred speculation about that country’s economy. Some are skeptical of the data, and point to other indicators that suggest slower growth.  Although a deceleration in growth is consistent with the plans of Chinese officials, policymakers may respond with […]

China Drills Into ‘Roof of the World’ to Help Alleviate Foreign Resource Dependence

By Rory Johnston: From copper to iron to oil, China is the world’s leading importer of almost every raw mineral. Wary of the risks this dependence brings, Beijing is looking ever inward to exploit the mineral wealth of its interior, including the politically contentious and technically challenging Tibetan Plateau. The most recent development is a […]

China: Size Matters

By Steven Barnett (Version in  中文 and  Español) Mongolia’s economy grew nearly 12 percent last year, the United States around 2 percent. So Mongolia grew around 6 times faster than the United States, yet of course the United States contributed more to GDP growth—over 150 times more. Why, because size matters. Let’s apply this logic to China. A bigger […]

5 Energy Challenges Confronting India

By Sean Durns / Global Risk Insights: On March 12, 2014, India and the United States renewed talks regarding cooperation on clean energy. The talks concluded positively with memorandums of understanding for the two countries to cooperate on research and development, more extensive use of environmentally friendly technologies, and greater coordination on scientific development. The dialogue […]

Japan Cuts Solar, Raises Wind Tariff

Japan slashed the rate that solar power earns on the grid by 11%, down to 32 Yen (31 cents) per kilowatt-hour. Beginning in the new fiscal year in April, projects that come online will receive that lower rate for 20 years. Japan instituted the most generous feed-in-tariff in the world after the Fukushima meltdown, in an effort […]

MSCI to Decide in June About Including China’s A-Shares

Two weeks ago, MSCI indicated that it was considering including China’s A-shares (yuan-denominated mainland shares)  into its emerging market equity index.  It plans on consulting with 2000-3000 fund managers, with a decision expected in June.  If it does decide to include China, it most likely won’t be until mid-2015.   The early results are thought […]