The Dismal Economist

I am currently in Mumbai, where I am attending a conference on “Policies for Growth and Financial Stability Beyond the Crisis – The Scope for Global Cooperation”. This morning, Duvvuri Subbarao, the Governor of the Reserve Bank of India, gave an intersting speech in which he addressed what he called “Frontier Issues on the Global […]

The Economist has pulished its latest Big Mac index (“Bun fight. Why China needs more expensive burgers”), according to which the Chinese yuan is undervalued by about 40%: A WEAK currency, despite its appeal to exporters and politicians, is no free lunch. But it can provide a cheap one. In China a McDonald’s Big Mac […]

We have recently heard much about currency wars. China stands accused of undervaluing its exchange rate to gain unfair advantages for its export industry, causing other countries to also intervene in the foreign exchange markets or impose caps on capital inflows. In a piece for the East Asia Forum (“A regional solution to global imbalances: […]