Washington Post (August 2)
“China’s state-driven economic model has created many problems. Monetary policy isn’t one of them.” On the heels of the Fed’s rate cut, the ECB “looks poised to follow suit in September” and “the temptation is high for other central banks to fall in line.” But often they’re “canceling out each other’s efforts,” which is one reason the dollar didn’t fall with the latest rate cut. “Developed nations play out what is a zero-sum game.” In the process, they’re “using up the ammunition they have available to support their economies in the event of a downturn.” In contrast, the PBOC has avoided playing the rate cut game and “China’s 10-year government bond yield is relatively unchanged since the end of 2018.”
Tags: Canceling out, China Economic model, Developed nations, Dollar, Downturn, ECB, Fed, Monetary policy, PBOC, Rate cut, Temptation, Zero-sum game
The Economist (November 19)
“Reagan’s America was optimistic: Mr Trump’s is angry. Welcome to the new nationalism. For the first time since the second world war, the great and rising powers are simultaneously in thrall to various sorts of chauvinism. Like Mr Trump, leaders of countries such as Russia, China and Turkey embrace a pessimistic view that foreign affairs are often a zero-sum game in which global interests compete with national ones. It is a big change that makes for a more dangerous world.”
Tags: Angry, Chauvinism, China, Compete, Dangerous, Foreign affairs, Nationalism, Optimistic, Pessimistic, Reagan, Russia, Trump, Turkey, Zero-sum game
