Corridors and Floors in Monetary Policy
Thanks for that. I found that very educational. Very simply explained. Logical when you think about it. Now, where is the 'staircase'?
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Posted 05 April 2012 - 10:27 PM
Edited by hotairmail, 06 April 2012 - 07:12 AM.
Posted 06 April 2012 - 05:03 PM
Edited by hotairmail, 07 April 2012 - 12:01 AM.
Posted 06 April 2012 - 07:27 PM
Posted 07 April 2012 - 05:58 AM
I am on the smartphone so will keep this short. Basically the CCP is naturally riven by cliques but occasionally it comes into the open (ie Tiananmen and now the Bo thing). After Tiananmen the Shanghai clique led by Jiang Zemin took control, but Hu and Wen (Wen is the protege of Zhao Ziyang who got ousted for saying the students might have had a point, his book is worth a read) have had the last 8 years in power. However they have needed to operate by getting consensus across the party, the Mao and Deng godlike powers are over. Getting rid of Bo has apparently taking a year of getting the necessary support before moving against him.
Interesting things going on in China.
Posted 07 April 2012 - 09:13 AM
The Revenge of Wen Jiabao
(author is an aussie journalist who's talked/written quite a bit about china, mafia, corruption. Is interesting I think, with some balance of critique in the comments and in common sense reality that can have opinions but know sweet fa about it really).
and while sort of on the subject: Honor Thy Creditors Beforan Thy Shareholders: Are the Profits of Chinese State-Owned Enterprises Real?
Posted 08 April 2012 - 07:27 PM
What must be true is that larger aggregate balance sheets are more exposed to interest-rate risk. If the property-related explanation for the expansion in household balance sheets is correct, then one important corollary is that the debt and the financial assets are held by different people – the debt by the young (roughly speaking), the assets by the old. In time, this intergenerational transfer may get unwound, via bequests. But it may not (the old could yet consume their capital gain) and, in any case, the gross debt has to be serviced in the meantime4. Much of the expansion in balance sheets (I have argued) was due a secular decline in the long-run, risk-free rate of interest, and they are now more vulnerable to a reversal of that trend. I will discuss the risks and implications of a rise in long-term interest rates later on
"The problem with capitalism is that eventually you end up with everyone else's money" RK
"We have now entered The Great Rebalancing 2007-20xx" - RK
"Gold will go to $1000, Silver to $18" - RK August 2011
QE £100bn and build 1m council homes - RK
Carney announces the launch of Empire 2.0 - Rise of the Banksters Oct '13
Posted 08 April 2012 - 08:01 PM
This won't be a 'popular' view with many on here but nontheless makes sense. In some ways it accords with what I understand to be Scepticus' argument.
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