These recessionary forces emanating from the US and the rising dollar come on top of those created by the big real shocks. In Europe, above all, there is the way in which higher energy prices are simultaneously raising inflation and weakening real demand. Meanwhile, the determination of China’...
The growing divergence among the world’s most important central banks The ongoing collapse in oil and other commodity prices as a function of excess supply and/or weakening global demand The rise of the US dollar, driven by divergence and risk aversion… and the squeeze it’s putting on the...
As the United States tightens up and China loosens monetary policy, the weakening of the renminbi against the US dollar is the most natural thing in the world, symbolizing the normalization of the renminbi. The central bank's action timing reflects that the central bank is worried that the U...