Currency
An electronic share price board showing the numbers of the Tokyo Stock Exchange

Major Markets Tumble On Heightened Recession Fears

Global equities, oil prices and bitcoin plunged Monday on heightened recession fears triggered by runaway inflation.The dollar, however, gained versus major rivals, benefiting from its status as a haven investment and expectations of aggressive interest-rate hiking from the Federal Reserve (Fed).Bond yields also rose, with 10-year United States (US) Treasuries above 3.3 percent and Italy's 10-year debt breaking four percent for the first time in more than eight years.The US currency stru

14 June 2022
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Share prices on the Tokyo Stock Exchange

Get Ready For Reverse Currency Wars

The United States (US) dollar is up 12 percent against the euro over the past year and, at €0.93, is approaching parity. If prices of oil and other commodities now seem high in dollar terms, they look even higher in euros.

26 May 2022
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The Right Advice For The Pandemic Recovery

Last year, I lost my teacher, friend, and most valued research colleague, and the world lost a brilliant economist. Richard Cooper was one of my supervisors when I was pursuing my Ph.D. at Yale. As a doctoral candidate, I benefited from a veritable “dream team” of economists, each of whom enriched my life and work tremendously. James Tobin pushed me towards deep and creative insights with empirical relevance. Edmund Phelps sharpened my analytical skills.

2 July 2021
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How Will The Digital Renminbi Change China?

While many central banks are still investigating the possibility of issuing a digital currency, China has rolled out a digital currency via a series of pilot programs since last year.

4 May 2021
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Will COVID-19 Kill Cash?

Four years ago, Kenneth Rogoff, a former chief economist of the International Monetary Fund (IMF), made a powerful case for phasing out paper money.

28 July 2020
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Who Has The World’s Largest Economy?

The World Bank’s International Comparison Program (ICP) has just released its latest measures of price levels and gross domestic product (GDP) across 176 countries, and the results are striking. For the first time ever, the ICP finds that China’s total real (inflation-adjusted) income is slightly larger than that of the United States (US).

1 June 2020
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The currency manipulation game

The trade war between the United States (US) and China is heating up again, with US President Donald Trump abruptly announcing plans to impose a 10 percent tariff on the US$300 billion worth of imports from China that he had so far left untouched. The Chinese authorities then allowed their currency, the renminbi, to fall below the symbolic threshold of CN¥7 per US dollar.

11 August 2019
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Weaponizing the yuan

China's move to devalue its currency could prove to be a double-edged sword in its escalating trade war with the United States (US), offsetting tariffs but potentially hurting Beijing's efforts to shore up its weakening economy, analysts say.Although China's central bank governor Yi Gang insisted Monday that the country would "not engage in competitive devaluation", Washington wasted no time in formally labelling Beijing a currency manipulator when the yuan plunged be

9 August 2019
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Why is the Renminbi depreciating?

China’s currency has started falling again. The last major depreciation of the Chinese renminbi began in the second half of 2015, triggered by a surge in capital outflows. Despite repeated interventions by the People’s Bank of China (PBOC), markets remained frenzied for more than a year. The currency’s value fell to nearly CN¥7 per United States (US) dollar, before stabilizing in early 2017.The latest decline has been even sharper.

30 August 2018
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Vietnam's dong feels the heat

Think the latest yuan rout is over? Tell that to Vietnam.The slide in China’s currency paused this week after jawboning by the central bank, which told commercial lenders it has the tools to stabilize the market and urged them to avoid “herd behaviour,” it was reported Tuesday.

10 August 2018
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Jokowi's growth target remains a dream

For President Joko Widodo, the Indonesian economy is offering little cheer as he gears up to run for a second term.Growth is nowhere near the seven percent Widodo envisioned when he took office in 2014, and he has to once again contend with a currency rout and a widening current-account deficit.

6 August 2018
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Philippine GDP growth exceeds 6% for a ninth consecutive quarter

The Philippine economy grew more than six percent for a ninth consecutive quarter, cementing its position as one of the fastest-expanding in the world.Key Points Gross domestic product increased 6.9 percent in the third quarter from a year earlier, the Philippine Statistics Authority said in Manila Thursday, after expanding a revised 6.7 percent in the previous three months.

16 November 2017
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