The European Central Bank (ECB) has raised all three of its key interest rates by a further 0.25%, bringing the deposit rate to 3.25%, the refinancing rate to 3.75% and the marginal lending rate to 4%. This is the first set of hikes that have not been half a percentage point in size, which would indicate that the ECB is close to ending its tightening of monetary … [Read more...] about ECB: more work required to tame inflation
The EU’s “stick approach” to climate action: CBAM
The European Union is set to strengthen its climate mitigation framework with the adoption of the first carbon border tax in the world targeting the carbon content of imported products. This innovative policy measure, called the Carbon Border Adjustment Mechanism (CBAM), is due to launch in October 2023 and set to become a key pillar of European climate policy. The EU is … [Read more...] about The EU’s “stick approach” to climate action: CBAM
How to Lose Reserve Currency Status
The Incan and Roman societies disappeared, the Ottoman Empire fell apart, the United Kingdom saw the pound lose its reserve currency status. So, anyone who says the US, and the dollar, couldn’t face the same fate doesn’t pay attention to history. The question is: will it? Russia, China, Brazil, and others, including Saudi Arabia, all seem to think they can find a way to … [Read more...] about How to Lose Reserve Currency Status
The Fed—quantitative tightening or quantitative easing?
Can central banks simultaneously provide liquidity to banks suffering sharp deposit withdrawals while also slowing money and credit creation by raising interest rates? In essence, can central banks quantitatively tighten and quantitatively ease at the same time? The actions of the Federal Reserve (Fed) in recent weeks raise these questions. Since the Silicon Valley Bank … [Read more...] about The Fed—quantitative tightening or quantitative easing?
The Shine on Singapore
In late 2018, friends forced me to watch the movie ‘Crazy Rich Asians’. Not my genre of choice. Many friends and acquaintances who had never visited Singapore gushed about the pristine, manicured and glitzy playground for the ultra-wealthy. I tried to erase their misguided notions, citing anecdotes, quoting statistics and describing on-the-ground realities. I argued my case … [Read more...] about The Shine on Singapore