central banks

Powell’s Black Monday

The recent sell-off in equity markets is a timely reminder of how inherently unstable the financial system is. The trigger, a larger than expected increase in Average Hourly Earnings in the US, cannot itself explain such a violent gyration. In fact, US Treasury yields have been steadily raising since the summer, when macro data clearly … Continued

Should currencies be allowed to float freely?

Since the financial crisis set in motion the largest monetary experiments in recent history, accusations of “currency wars”, or “currency manipulation”, have been commonplace. These reflect the predominant liberal dogma, which dictates that exchange rates should be determined by market forces, with the role of central banks limited to silently observe as bystanders. Any attempt … Continued