Posts tagged…Monetary Policy
The impact of Fiji’s devaluation
Thu, Apr 16 2009
It's not hard to understand the motives. But the devaluation is a gamble that is not guaranteed to pay off.
No doubt, the devaluation had to do with the export sector's poor contribution to income (goods only in the accompanying chart). Devaluation will cut the foreign-currency price of Fiji's exports and possibly increase income in $F—if there is a strong export supply response.
That may be a…
Read more…China’s monetary policies
Wed, Apr 01 2009
The People's Bank has an english language site that is becoming essential reading.
The papers and speeches by the Governor, Zhou Xiaochuan, such as this paper on international monetary reform are significant documents. Well-argued, straight-forward, with little of the bluster that has occasionally spoiled China's official account of itself (and is not unknown to our own Dear Leader).
…Two theories of recession
Thu, Feb 12 2009David Warsh, possibly the best economic writer on the Web, explains with the help of a pre-NYT Paul Krugman article, that neo-Keynsians, including most of Obama’s technical advisers, have a very different understanding of the origins of recession than the more popular understanding that Krugman called the ‘hangover theory’.
The neo-Keynsians, including National Economic Adviser Lawrence…
The Panic of 2007
Wed, Aug 27 2008The sub-prime mortgage crisis sparked a financial market panic caused by lack of information on the current size of the problem. This market-information fault is due, in essence, to the way that the sub-prime mortgage is structured.
Not an easy analysis, but careful, complete, convincing. Hint: you can skip the really obscure stuff on derivative instruments and still find very good value in this…