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My investing and writing are primarily focussed on macro areas such as currencies, commodities, global investing, and geopolitics. I also closely monitor technology. I generally have a medium to longer-term investment horizon. I encourage you to review the track record of my published articles... More
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The PolyCapitalist
  • What's the Difference Between 'Financial Repression' and 'Macroprudential Regulation'? 0 comments
    Jun 30, 2011 10:22 PM | about stocks: TBT, TMV, TLT, TIP, GLD, SGOL, IAU, EUFN
    The most striking remark made by former Bundesbank Chief and ECB frontrunner Axel Weber in a recent WSJ interview were his comments on the possibility of using financial repression to solve the Greek and wider European debt crisis:
    “Ultimately, there will be a debate about financial repression. Take what we had in Germany — the Zwangsanleihe [compulsory loans introduced after World War I to help make reparation payments]. If voluntary contributions don’t add up, then the one tool that is still on the shelf is financial repression.”
    To my knowledge, this is the first time a major senior policymaker (albeit one who recently stepped down) has publicly used the term 'financial repression'. As economist Carmen Reinhart and others have noted, the policies associated with financial repression are typically couched under the more benign, positive sounding 'macroprudential regulation'.

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