Money shortage
Andy Xie, The New Century Weekly
Summary
The so-called money shortage today reflects excessive money demand in the past, which was a result of very loose monetary policy. If the tightening policy is changed due to the pressure, the monetary condition would go back to the excessively loose state. As inflation is still unstable, i.e., product or service price could jump by 20-30% in one go, loosening monetary policy could trigger hyperinflation and social turmoils.
Showing posts with label Andy Xie. Show all posts
Showing posts with label Andy Xie. Show all posts
Monday, June 27, 2011
Tuesday, May 31, 2011
The New Century Weekly
The New Century Weekly
Double dipping again
Andy Xie
May 30, 2011
Summary
The double dip scare has begun earlier this year than in 2010. High oil prices, falling property market in the US, sovereign debt crisis in Europe, recession in Japan, and inflation-induced tightening in the emerging economies are exerting downward pressure on the global economy. The growth data will surprise on the downside, inflation data on the upside. Risk assets like stocks and commodities will come under pressure in the summer.
Double dipping again
Andy Xie
May 30, 2011
Summary
The double dip scare has begun earlier this year than in 2010. High oil prices, falling property market in the US, sovereign debt crisis in Europe, recession in Japan, and inflation-induced tightening in the emerging economies are exerting downward pressure on the global economy. The growth data will surprise on the downside, inflation data on the upside. Risk assets like stocks and commodities will come under pressure in the summer.
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