“Saudi Arabia Offers to Send Ground Troops to Fight ISIS”–This is further evidence that Saudi Arabia is not the least bit worried about the sustainability of its currency peg to the dollar of 3.75 riyal per dollar. Despite a 2015 budget deficit of a whopping 15% of GDP due to a decline in oil prices no longer seen as transitory, the kingdom is preparing for further military expenses. Continue reading But what about Saudi Arabia’s budget deficit?
Prior to the summer market turmoil surrounding China’s stock market intervention and currency devaluation, most economists had expected the Federal Reserve’s first rate increase since 2006 to come Continue reading Despite rate liftoff, Fed still thinking internationally
There has been a lot of talk about the Federal Reserve’s Overnight Reverse Repurchase (ONRRP, RRP, or reverse repo) mechanism. The Fed has chosen to expand the limits Continue reading The politics of the Fed’s reverse repo mechanism
Not only has the People’s Bank of China (PBoC) not followed in the Federal Reserve’s rate hike footsteps (rather, it began publishing an index of the renminbi Continue reading People’s Bank of China again not following the Fed