Showing 1 - 10 of 13
Central banks can't solve all woes
News, Satyajit Das, Published on 25/02/2019
» In the short time since December 2018, central banks have collectively injected as much as US$500 billion (15.6 trillion baht) of liquidity to stabilise economic conditions. The US Federal Reserve has put interest rate increases on hold and is contemplating a halt to its balance-sheet reduction plan. Other central banks have taken similar actions, fuelling a new phase of the "everything bubble" as markets careen from December's indiscriminate selling to January's indiscriminate buying.
Five 'doom loops' to navigate in the market this year
News, Satyajit Das, Published on 03/01/2019
» As the great unwind of global monetary stimulus gains momentum, markets are at increased risk of experiencing doom loops. Investors need to be prepared for these downward spirals, where shocks set off a self-perpetuating sequence of disruptions.
Are emerging markets ready for a financial crisis?
News, Satyajit Das, Published on 27/08/2018
» Over the past decade, a lot of capital has flowed into emerging markets thanks in part to excessive liquidity in advanced economies. This money has often found its way into risky or suspect investment structures. Should a crisis strike -- say, contagion from Turkey -- investors in these markets will be exposed to risks that they simply aren't prepared for.
Is an emerging-market crisis near?
News, Satyajit Das, Published on 05/09/2018
» Emerging-market stresses have been building since at least 2013. Investors may have forgotten the effect of the "taper tantrum" on the so-called Fragile Five -- Brazil, India, Indonesia, Turkey and South Africa -- a term coined by Morgan Stanley to describe their vulnerability to capital outflows. Monetary accommodation, lower current-account deficits and growth disguised the underlying challenges, attracting more capital to those markets.
Extend-and-pretend runs out of puff
News, Satyajit Das, Published on 06/02/2018
» The default operating model today for seemingly all economics, business, social policy and environmental decisions is "extend and pretend", colloquially known as "kicking the can down the road". This approach brings forward benefits or gains, often based on cosmetic solutions, and defers risks or costs into the future. It's a convenient model for many reasons. But it's now in danger of breaking down.
On energy, the world is asking the wrong questions
News, Satyajit Das, Published on 21/06/2017
» To adapt Thomas Pynchon, if the wrong question is asked, the answer doesn't matter. Today, the world seems to be consciously framing its energy problems in a way that avoids the right questions, and thus true solutions.
Virtual cash not a global panacea
News, Satyajit Das, Published on 23/05/2017
» Even now, after the chaos caused by India's decision last November to eliminate nearly 90% of its banknotes, few people would argue with the policy's underlying assumption: Going cashless is, if handled well, a good thing. Yet the fact is, most arguments in favour of demonetisation don't stand up to scrutiny. And those that do should raise other concerns.
Don't count on innovation to overcome stagnation
News, Satyajit Das, Published on 30/05/2017
» Innovation, everybody hopes, will rescue the world from economic stagnation. I'm not so sure.
If corporations are people, they can be real jerks
News, Satyajit Das, Published on 06/06/2017
» Critics of globalisation have named their enemies: those citizens of the world who, in British Prime Minister Theresa May's scornful phrase, are really "citizens of nowhere". Populist leaders are championing policies to combat such cosmopolitanism -- restricting migration, rethinking regional trade deals, pressuring companies to create jobs at home.
Don't bet on much change in 2017
News, Satyajit Das, Published on 03/01/2017
» At the end of each year, commentators traditionally reflect on emergent themes likely to shape the future. These prognostications usually ignore the indifferent record of prophets. The current consensus identifies two themes for the coming year: rising populism, and reflation -- that is, stronger growth and the return of inflation.