Tag: Monetary Policy
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Japan’s Monetary Policy – Thoughts on Speech at BOJ by Ben Bernanke ( Part 1 )
Ben Bernanke, the former head of the Federal Reserve recently gave a talk/speech on Japanese Monetary Policy at the BOJ recently here. For those who do not know, I am a big economics nerd especially when it comes to monetary policy and I find this talk very interesting as I…
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To Raise or not to Raise – Central Bank’s Monetary Dilemma
Just wanted to highlight this article here by Reuters on the difficulties of being a central bank. As you all know, interest rates by historical standards are at an all time low all over the world now. This has raised concerns on over-inflated stock markets, excessive credit growth and asset…
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The Potential Implications of Trump’s USD1 trillion Infrastructure Fund on Malaysia – Capital Flows Perspective
How should we think about Trump’s USD1 trillion Infrastructure Fund
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China’s Fixed Exchange Rate – How does PBOC Maintain it?
An article emerged recently from Bloomberg which you can find here which talks about the rising outflows of yuan from China. As you may have heard, China is actually trying to “internationalise” its Yuan, meaning to make it comparable to the currency big boys like the USD, EURO and Yen as…
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The Implications and Rationale of a Negative Rate Policy, A Consumption Point of View
I have recently read 2 interesting posts on negative rates by Stiglitz and Bernanke . Basically, they are trying to assess the impact and effectiveness of central banks pushing down rates to negative territories. Stiglitz seems to think that it’s not going to be that impactful considering the fact that real interest rates are…
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Why Bank Negara Malaysia should just let the ringgit do its thing – to float freely (Part 2)
In part 2, I will attempt to explain the monetary arrangements that are being pursued by BNM and how ultimately its hands are tied in relation to what the institution wants to achieve. In the economics field specifically monetary policy, there is a an empirically proven tri-lemma that exists for…
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Why Bank Negara Malaysia should just let the ringgit do its thing – to float freely (Part 1)
Much has been said over the months from the years of 2014-2015 about the weakness of the ringgit, about how its decline should be controlled by the various governmental institutions (Bank Negara Malaysia), or more extreme, the pegging of the ringgit to a major currency or a basket of currencies.…
Slice of P.I.E 