“Take a deep breath….everything will be okay.” This is something I find myself saying to my kids, who live so in the moment, that anything upsetting right now, might seem to them like it could last forever. Of course, usually within about 10 minutes they have completely forgotten about it and are happily playing again. But … More Reflections on the rout
Yesterday morning the People’s Bank of China (PBoC) surprised everyone by announcing a change to the way it was going to calculate the daily fixing rate for the Yuan (CNY). They said that the fixing would be more market-determined. More on that below, but for those unfamiliar with the exchange rate regime in China, the currency … More China: the PBoC play with fire
Over the weekend the PBOC reduced the Reserve Ratio Requirement (RRR) for banks by more than most analysts had expected. For those unfamiliar, RRR are the fraction of bank deposits that must be deposited with the central bank; in this case the PBOC. RRR’s can be used as a monetary policy leaver, as increasing (reducing) … More China: the many policy levers of the PBOC
Fundamental Macro 