dollar

President Trump’s real bet is on tax cuts

Fun U.S. dollar bills were distributed during Donald Trump’s presidential inauguration

27.02.2017

President Donald Trump has threatened to erect trade barriers to create jobs and boost wages in the United States. These goals won’t be reached through protectionist measures, which more likely will be used as a geopolitical bargaining chip. Instead, Mr. Trump’s economic policy will hinge on the success of his plan to cut corporate tax rates and weaken the dollar.

Professor Enrico Colombatto

ECONOMY

Strange bedfellows: Donald Trump and the Fed

U.S. Federal Reserve building in Washington, D.C.

08.12.2016

President Donald Trump’s incoming administration is about to give the United States Federal Reserve just what it’s been asking for – a significant fiscal stimulus. The problem is what happens next, when inflation expectations, interest rates and the dollar all go up. Tempers will flare in Washington, and the international repercussions could be much worse.

Lars Christensen

ECONOMY

The falling yuan: implications for China’s economy

18.07.2016

In July 2016, the yuan dropped to its lowest rate versus the dollar since 2010. What does this development mean, and what can we expect for the future, given Chinese ambitions to present the yuan as a strong and reliable international currency? In order to make any predictions, it is necessary to know what the authorities in Beijing will do to address the current problems of the economy as a whole.

Professor Enrico Colombatto

ECONOMY

Loose monetary policy could be on its way out

Brussels, Feb. 15, 2016: Mario Draghi, president of the European Central Bank, deserves credit for stating clearly that easy money cannot work miracles (source: dpa)

18.04.2016

In March, the United States Federal Reserve kept its main interest rate on hold, while the European Central Bank cut its main interest rate to zero. The moves confirmed what investors already knew: the American and European economies still have plenty of weaknesses. But despite appearances, the Fed and the ECB are on track to end their expansionary monetary policie...

Professor Enrico Colombatto

ECONOMY

Angola’s dependence on oil exacts toll as 2017 elections loom

Though Angola is largely dependent on oil extraction, mining and agriculture are sectors that offer opportunities for the country to diversify its economy (source: macpixxel for GIS)

01.04.2016

Since the end of Angola’s civil war (1975-2002), oil production in the country has rapidly increased. Production more than doubled between 2004 and 2008, from 800,000 to 1.7 million barrels per day, stabilizing at around 1.8 million bpd in 2015. Oil revenues alone injected an estimated $470 billion into Angolan state coffers between 2002 and 2014. But the recent dr...

Anonymous GIS Expert

POLITICS

Fed-engineered recession may speed dollar bloc’s collapse

Washington, D.C., Feb. 11, 2016: Federal Reserve Chair Janet Yellen speaks at a Senate hearing on the Fed’s monetary policy (source: dpa)

04.03.2016

The year has not started well for global financial markets. Undoubtedly, one reason that stocks have slumped is that the United States Federal Reserve under Janet Yellen has started to raise interest rates and signaled that more hikes are coming. The hawkish stance of Ms. Yellen’s Fed not only risks derailing the U.S. eco...

Lars Christensen

ECONOMY

Global trends: fear strikes policymakers as ‘dollar bloc’ begins to unravel

Over the past year, several countries confronted with the choice between currency depreciation and fiscal austerity concluded that a tight link to the dollar is no longer sustainable; more can be expected to follow in 2016-2017. (source: macpixxel for GIS)

07.01.2016

A clean break in the renminbi’s link to the dollar, which has existed since China started opening its economy in the late 1970s, would herald the demise of a “dollar bloc” that has dominated global finance for decades. While this would not necessarily displace the dollar as the world’s main reserve currency, it would significantly reduce the U.S. Federal Reserve’s ...

Lars Christensen

ECONOMY

Yuan’s slow rise could mean trouble for Western economies

Washington, Nov. 30, 2015: Christine Lagarde, managing director of the IMF, announces that China’s currency is eligible to join the Special Drawing Rights (SDR) basket (source: dpa)

16.12.2015

At the end of November, the International Monetary Fund (IMF) announced that from October 2016 the Chinese yuan will be part of the basket of currencies that defines the Special Drawing Right (SDR), the accounting unit the organisation uses to carry out financial operations. The immediate practical effects will be minor. Being part of a unit of account means all bu...

Professor Enrico Colombatto

ECONOMY

America’s reputation as a safe harbour takes a big knock

Janet Yellen is an advocate of easy moneytary policy (photo:dpa)

25.11.2013

Political squabbling took America to the brink of a government shutdown. While the issue was resolved at the last minute, it damaged America’s reputation as a safe haven in times of financial crisis. But what is worse is that the US seems to be learning some bad financial lessons from Europe. <i>The American governm...

Professor Enrico Colombatto

ECONOMY

President Trump’s real bet is on tax cuts

Strange bedfellows: Donald Trump and the Fed

The falling yuan: implications for China’s economy

Loose monetary policy could be on its way out

Angola’s dependence on oil exacts toll as 2017 elections loom

Fed-engineered recession may speed dollar bloc’s collapse

Global trends: fear strikes policymakers as ‘dollar bloc’ begins to unravel

Yuan’s slow rise could mean trouble for Western economies

America’s reputation as a safe harbour takes a big knock