Reserve Judgement

With regard to the vexed issue of the renminbi, let’s focus on the basics. The official response to July’s stock market collapse saw loans to non-bank financials (the PPT) rise CNY891bln. Many of the recipients, the bailees, took their funds and either moved them abroad or paid back external loans, causing a record CNY242bln efflux.

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Memo to Mario: Money is fungible

Since the spring of 2014, the euro has lost around a quarter of its value, Mario Draghi has finally joined the Big Boy’s League by launching his own, decidedly belated version of QE, and—everywhere but in poor, benighted Greece—the growth of the money supply has been bordering on the explosive. Continue reading