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Malaysia should peg the renggit to the price of rubber and natural gas
The Christensen family arrived in Malaysia yesterday. It is vacation time! So since I am in Malaysia I was thinking I would write a small piece on Malaysian monetary policy, but frankly speaking I...
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A modest proposal for post-Chavez monetary reform in Venezuela
Let’s just say it as it is – I was very positively surprised by the massive response to my post on the economic legacy of Hugo Chavez. However, as somebody who primarily wants to blog about monetary...
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Russia’s slowdown – another domestic demand story
Today I am in to Moscow to do a presentation on the Russian economy. It will be yet another chance to tell one of my pet-stories and that is that growth in nominal GDP in Russia is basically determined...
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Angola should adopt an ‘Export-Price-Norm’ to escape the ‘China shock’
It might be a surprise to most people but one of the fastest growing economies in the world over the last 10-15 years has been Angola. A combination of structural reforms and a commodity boom have...
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PBoC governor Zhou Xiaochuan should give Jeff Frankel a call (he is welcome...
Jeffrey Frankel of course is a long-term advocate of NGDP targeting, but recently he has started to advocate that if central banks continue to target inflation then they should target producer prices...
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Recession time for Russia – the ultra wonkish version
I have long been a proponent of what I have called the Export Price Norm (EPN). The idea with EPN is that commodity exporting countries can ensure stable nominal spending growth by pegging their...
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Kwanza devaluation is the right decision, but fundamental regime change is...
This is from Reuters: Angola’s central bank devalued the kwanza currency by about 6 percent against the dollar, a statement showed, a move analysts said was aimed at stimulating foreign currency...
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The ‘Dollar Bloc’ continues to fall apart – Azerbaijan floats the Manat
I have for sometime argued that the quasi-currency union ‘Dollar Bloc’ is not an Optimal Currency Area and that it therefore is doomed to fall apart. The latest ‘member’ of the ‘Dollar Bloc’ left...
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Oil exporters do not devalue to boost exports, but to stabilize public finances
Yesterday Azerbaijan’s central bank gave up its pegged exchange rate regime and floated the Manat. The Manat plummeted immediately and was essentially halved in value in yesterday’s trading. Azerbaijan...
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‘Currency instability’ should NOT be a concern for Canada
The commodity currencies of the world continues to take a beating on the back of the sharp drop in oil prices. This is now causing some to fear “currency instability”. Just these this story from...
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