economics

In that sense the financial repression tax is no different from the currency undervaluation tax or the lagging wage growth tax, except that the taxes are paid by a different set of households in each case and delivered to a different set of producers in each case.

From a capital cycle perspective, the above situations only become attractive when stock market valuations fall to a fraction of replacement cost and a path opens up for dealing with the excess capacity.

But is there a negative correlation between the two in a financially repressed country like China? Probably not. Most Chinese savings, at least until recently, have been in the form of bank deposits. In a financial system in which deposit rates are set by the central bank, the value of bank deposits is positively, not negatively, correlated with

When predictability is poor—which it is in most of the studies reviewed by Meehl and his followers—inconsistency is destructive of any predictive validity.

When we invest in commodities, we refer to a broad basket of commodities, weighted in a manner that is largely consistent with each commodity’s contribution to economic activity

Beijing often does not provide financing: instead, it gives local officials broad discretion to arrange off-balance-sheet investment vehicles with the help of regional banks to fund projects in priority sectors, with the national government limiting itself to specifying which types of local financing options are prohibited. About 30 percent of

intangibles like patents and other forms of knowledge. And that’s around when companies started holding on to more cash

What happens next

The AI agent race won’t be decided by who has the smartest models. It’ll come down to who can get the most context in the interface that users are willing to switch to or already use.

Why Each Time is Worse

Each of these three dollar spikes over the past five decades caused harm to the global financial system at a lower level of dollar strength than the previous spike, resulting in either a planned correction or a self-correction towards a weaker dollar. There are likely two main reasons for this.

Firstly, global trade accounted