From Zeng and Wei in the Wall Street Journal today:
Central banks around the world are selling U.S. government bonds at the fastest pace on record, the most dramatic shift in the $12.8 trillion Treasury market since the financial crisis.
From Zeng and Wei in the Wall Street Journal today:
Central banks around the world are selling U.S. government bonds at the fastest pace on record, the most dramatic shift in the $12.8 trillion Treasury market since the financial crisis.
As noted in The Hill, from a letter written by key House and Senate leaders to President Obama:
The continued misalignment of China’s currency is unsustainable and unacceptable.
Today we are fortunate to have a guest contribution written by Jeffrey Frankel, Harpel Professor of Capital Formation and Growth at Harvard University, and former Member of the Council of Economic Advisers, 1997-99.
I have been stressing the international implications of a potential interest rate increase as a rationale for deferring monetary tightening. Export growth is slowing and economic activity in the tradables sector (manufacturing output, manufacturing employment) as the dollar has appreciated. [1] [2] How much more appreciation should we expect should the Fed tighten?
One of the bits of information in the employment release was a decline in manufacturing employment. When added to declining exports and stagnant manufacturing output growth, the case for near-term monetary policy tightening seems more tenuous to me.
Reasoned analysis and careful decisionmaking is required.
Today we are fortunate to have a guest contribution by Helen Popper, professor of economics at Santa Clara University.
The 2% devaluation of the Chinese yuan on Monday, and subsequent 1.6% weakening on Tuesday, was variously described as surprising and stunning. I think it was to be expected, given China’s slowing growth, although there was no particular reason to believe Monday would be the day. In evaluating the effects, one has to first place the drop in context.
In today’s WSJ, Justin Lahart notes “China Wind Chills U.S. Earnings”, and presents an interesting graph of import prices, which inspired me to look more closely at the issue.
That’s the topic of a conference sponsored and hosted by the Swiss National Bank and co-sponsored with the Bank for International Settlements (BIS), the Dallas Fed, the Centre for Economic Policy Research (CEPR), and the Journal of International Money and Finance.