Economic Commentary
Dollar vs. speculators: Don’t bet against the dollar
ECONOMY & POLICY April 05, 2023 Chief Economist Eugenio J. Alemán discusses current economic conditions. Chinese RMB is not convertible Chinese capital account has not been liberalized Non-Chinese holders of RMB cannot buy Chinese assets S. dollar is not losing its reserve currency status, it represents about 60% Chinese government negotiates bilateral swap lines […]
The case for high(er) for longer is still intact
ECONOMY & POLICY March 31, 2023 Chief Economist Eugenio J. Alemán discusses current economic conditions. We know that the markets continue to second guess the Federal Reserve’s (Fed’s) commitment to staying high(er) for longer with respect to interest rates. In fact, markets continue to have the Fed decreasing the federal funds rate considerably, to […]
Growth in real money supply is what is important for taming inflation, and for the Fed
ECONOMY & POLICY March 24, 2023 Chief Economist Eugenio J. Alemán discusses current economic conditions. Two weeks ago, we wrote (see our March 10, 2023 Weekly Economics) that a reduction in money supply should not be considered out of the ordinary and showed that while growth in the nominal supply of money recorded its first […]
Incremental progress emerging in the banking sector fallout
ECONOMY & POLICY March 20, 2023 CIO Larry Adam outlines the positive events that are outweighing negative developments and looks at dynamics to focus on in the week ahead. While the financial markets and headlines remain volatile, there has been some incremental positive momentum. Review below some of the positive events that outweigh the […]