In The News

The World Wary as US Federal Reserve Declares End to Debt Crisis

Chris Miller January 5, 2016
Central banks around the globe responded to the 2007-2008 global debt crisis by reducing interest rates and loosening monetary policy to encourage consumer spending, investment, employment and price stability. After seven years the US Federal Reserve lifted interest rates in December and signaled the possibility of gradual rate hikes, a move described by Chairwoman Janet Yellen as a process of “...

In China’s Alleyways, Underground Banks Move Money

Chuin-Wei Yap October 30, 2015
China’s government restricts movement of funds out of the country, but a network of middlemen charge fees for underground currency exchanges and remittance transfers. “Facing a turbulent stock market and a weakening economy, many Chinese are trying to move money offshore,” reports Chuin-Wei Yap for the Wall Street Journal. “No official data track the underground transfers, but central-bank...

Central Bank Interventions: Drunks Searching by the Light

Chan Akya August 28, 2015
Central banks may have gone too far in defying market forces with quantitative easing, stimulus spending and increased liquidity, argues Chan Akya for Asia Times. Loose monetary policy kept many in high-risk assets too long. Some investments are in bubble territory: “With the primary purpose of quantitative easing namely to kick start the economy absolutely failing to deliver its intended results...

Being a China-Connected Global Banker Isn’t What It Used To Be

Cathy Kit Ching Chan August 21, 2015
Competition from Chinese bankers and strict regulations are reducing business for US and European banks, reports Cathy Kit Ching Chan for BloombergBusiness. Some top investment bankers are resigning, and their posts go unfilled. The report notes that “risk and compliance departments at global banks have become more vigilant about turning down deals in China that might have political connections,...

Renminbi’s Flexible Rate – 10 Years On

Jennifer Hughes July 21, 2015
China surprised currency traders by announcing it is replacing its decade-long currency peg with a flexible exchange-rate, reports Jennifer Hughes for Financial Times. The renminbi has climbed steadily in value since 2005, reducing trade deficits and tension. “For China-watchers, the renminbi’s gradual moves towards full convertibility with long pauses along the way have become the classic...

Greece – A Mess With Consequences

David Dapice July 7, 2015
Greek voters have soundly rejected a set of reforms from the European Central Bank, the European Commission and the International Monetary Fund. The “no” vote may mark the beginning of Greece’s exit from the eurozone, and the uncertainty of what happens next comes at a bad time for the global economy, warns economist David Dapice. Economists can only speculate about the possible political and...

Can Beijing Make AIIB Transparent?

Nayan Chanda July 2, 2015
The world will judge the China-led Asian Infrastructure Investment Bank by the rules being drafted. Asia needs infrastructure development, and China initiated the bank after global groups like the International Monetary Fund did not reform their structures in recognition of China’s growing contributions. The United States is not a founding member, but the AIIB curtailed criticisms on governance...