roamantik

3 Comments

    • Is Renminbi Appreciation Slowing? [view article]
      Michael:
      Investopedia defines hot money as: 'Money that flows regularly between financial markets in search for the highest short term interest rates possible. CDs are an example of hot money.'
      Do you refer to hot money as per the Investopedia definition or, as I suspect, define it on a wider, more encompassing basis?
      Apr 30 10:52 AM
    • China's PMI Numbers Are Too Strong [view article]
      Michael:
      I really enjoy your blog, but I wonder whether the Cassandra in you might be causing you to overlook feasible alternatives to massive revaluation.
      For one, didn't Chile, some years back, impose a 1-year quarantine on new investments specifically to discourage speculation on its Peso?
      Apr 02 08:55 AM
    • China: Caught in a Monetary Trap [view article]
      Michael:
      I am surprised that you have not discussed other alternatives to massive revaluation of the RMB in order to curb hot money inflows.
      Didn't Chile impose a minimum one-year term on new investments specifically to discurage hot money? Given your experience in Mexico I would assume you are familiar with this stratagem. Didn't it work like a hot damn?
      ALso, the relative lack of interest of large money blocks (pension funds, mutual funds) in China plays (to date, anyway) and the mitigating effect that the large Chinese SWF would have if it were to channel its funds domestically (highways, airports, ...) instead of buying US Treasury bills, would seem to me to largely offset the need for PBoC to revalue the RMB.
      Mar 28 04:30 PM
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