Economics

25 August 2016

Post-Yellen, Trading Incentives to Resume Next Week

The US dollar remains mostly within the ranges seen yesterday against the major currencies. The market awaits fresh trading incentives and the end of the summer lull, which is expected next week.  The Jackson Hole Fed gathering at which Yellen...

24 August 2016

Are Immigrants Hurting or Helping Economic Growth?

Immigrants have become a major scapegoat in recent years for sputtering Western economies. Immigrants have become a major scapegoat in recent years for sputtering Western economies. From the U.K.’s jarring “Brexit” from the European Union to Donald Trump’s infamous wall and...

24 August 2016

Arguing Against Kocherlakota’s Argument

Former Minneapolis Fed President Kocherlakota, and now a professor at the University of Rochester used this Great Graphic in a recent Bloomberg column. Kocherlakota was a dove when he was at the Fed and remains dovish.  He is concerned that...

24 August 2016

The Complex Nature of a Nuclear Pledge

Barack Obama began his presidency with a dramatic gesture, which captured the world’s imagination and won him the Nobel Peace Prize. Speaking in Prague in 2009, he declared that the United States would work towards abolishing nuclear weapons. Since then,...

24 August 2016

Can the Yellen Build-up be Too Much?

The US dollar is going nowhere fast.  It is narrowly mixed against the major currencies.  The market waits for fresh trading incentives, with much hope placed on Yellen's presentation at Jackson Hole at the end of the week.  Is it...

23 August 2016

China’s G20 Mission should be Clear

In December 2015, China announced that its priorities for the upcoming G20 Hangzhou summit were to make the global economy more innovative, invigorated, interconnected and inclusive. However, China is struggling to deliver practical outcomes in these areas because many of...

22 August 2016

Team Dudley Includes Fischer

Last week, some market participants were giving more credence to what seemed like dovish FOMC minutes than to NY Fed President Dudley's remarks that accused investors of complacency over the outlook for rates.  Yesterday, Vice-Chairman of the Federal Reserve Fischer...

22 August 2016

The Dollar, What to Watch For, and Jackson Hole

The US dollar lost ground against nearly all the major currencies last week. The sole exceptions were the Australian dollar, where pressure ahead of the weekend following Moody's decision to cut the outlook for five Australian banks wiped out the previous...

19 August 2016

Key Ingredients for ASEAN Enterprise Success

ASEAN member states do not count for much in the global economy on their own. Indonesia, the biggest economy in Southeast Asia, has a GDP of US$861 billion, but that is still smaller than the economy of Tokyo. Yet combined,...

19 August 2016

After a Rough Week, the Dollar Finds a Footing

The US dollar is trading firmly ahead of the weekend as part of this week's losses are recouped. The gains are sufficient to put it higher for the week against the Australian dollar.  If its gains against the Aussie were...

18 August 2016

South China Sea Relations Complicated by Pesky Geography

Despite the old adage that ‘good fences make good neighbours’, sometimes it is impossible, for a variety of reasons, to build good ‘fences’ in the sea. This is certainly the case in the South China Sea, where territorial claims are...

18 August 2016

Maybe Wage Inflation is the Answer?

All that is solid is melting.  After Copernicus, we know that earth is not the center of Creation.  Darwin showed us that humans are part of the animal kingdom.  Freud told us we are not even masters of our own...