- According to an economic theory called the Unholy Trinity, governments can only ever have two of the following three things: pegged exchange rates, independent monetary policy and free capital flows. The reason why this is so is quite complicated. But the point is that they must choose two of the three, making the third a pressure valve for the problems created by their attempts to control the other two. Of course, governments occasionally try to have all three. But it always ends in humiliation. It’s only a question of when. READ MORE
Similar Posts:
- The Biggest Problem China Faces Isn’t Real Estate (The Epoch Times via Zero Hedge)
- China to Exert Greater Financial Discipline This Year (BNP Paribas AM)
- What’s Really Driving China’s Currency Stability (KraneShares)
- From Hong Kong to Malaysia, Property Markets Set to Decline: IMF (Nikkei Asia)
- Emerging Market Links + The Week Ahead (October 10, 2022)
- Secret to Enduring Stagflation Sends Traders to Emerging Markets (Bloomberg)
- ‘I Can’t Get My Money Out’: Billionaire Investor Mark Mobius Says China is Restricting Flows of Capital Out of the Country (The Insider)
- China: Navigating the Regulatory Landscape (UBS AM)
- LEFT TO ROT: Inside China’s Apocalyptic ‘Ghost Cities’ Where 65Million Homes Lay Deserted as Communist Party Faces Economic Chaos (The Sun)
- When China Sneezes, Latin America Gets the Flu Thanks to Commodities (IPS)
- Outlook On Emerging Markets (Lazard AM)
- 2021 Midyear Asia Economic Outlook: Divergent Recoveries (PineBridge Investments)
- YPO CEO Survey: Asia CEO Confidence at 2-year Low (YPO)
- EM Push & Pull: As China Rises, Competition for Capital Heats Up (Aviva Investors)
- Evergrande on Brink of Collapse: 4 Things to Know (Nikkei Asia)
