The pertinent measure of any exchange rate backing is the ratio of FX reserves to broad money supply. Indeed, households and companies can not only use cash in circulation but also their deposits to acquire foreign currency.…
The monetary base includes: The balance of the clearing accounts of banks kept with the Hong Kong Monetary Authority (HKMA). Exchange Fund bills and notes – securities issued by the Exchange Fund to manage excess…
The pressures in Hong Kong also highlight why we view Taiwan as a potential “Black Swan.” Similar political fissures are emerging as Beijing expands its economic and military dominance over Taiwan. Of course, the…
The current protests are part of a process going back to 2012 in which the disaffected and marginalized parts of Hong Kong society began speaking up against the political establishment. This emerged because of high income…
Highlights The March data brought the first signs of a stabilization in China’s “hard” economic data, albeit from a weak level. The April PMIs disappointed, but they remained in expansionary territory; this is in…
Please note that a Special Alert titled "Brazil: A Regime Shift?" discussing investment implications of the weekend elections was published on Tuesday. Highlights The combination of rising U.S. bond yields and slumping…
Highlights The China-specific tariffs proposed by the Trump administration last week represent a great escalation in U.S. protectionism, but the actual measures may be smaller than what was initially announced. The proposed tariffs,…