Threat of ‘currency bullying’

November 9, 2018 | Otaviano Canuto - Principal, Center for Macroeconomics and Development
On 24 July the International Monetary Fund released its 2018 External Sector Report, its latest assessment of the current account balances of the world’s 30 largest economies. There was no major change relative to previous years, and the configuration of global surpluses and deficits that has prevailed since 2013 endures. However, there are reasons to expect more abrupt alterations ahead, particularly in the light of US fiscal easing at a time of high employment in the country. In the context of US-led trade wars, as well as recent bouts of Chinese exchange rate depreciation, it is possible that currencies will be subjected to their own war or ‘currency bullying’.

It is high time for smart CAPEX in Bank Operations (back offices)

November 6, 2018 | Ivan Bulajic - Executive Director of Operations, Société Générale
Over the last two decades, technology advances have had a major impact on banking. But, not all bank functions have participated equally in this rapid evolution.

How to Heal the Brazilian Economy

November 2, 2018 | Otaviano Canuto - Principal, Center for Macroeconomics and Development
The Brazilian economy is suffering from a combination of ‘productivity anemia’ and ‘public sector obesity’. The crisis, followed by slow recovery in recent years, reflects the advanced stage of evolution of the disease, preceded by an incubation period during which its symptoms were disguised. Improving productivity performance, reforms in the governance model of the Brazilian public sector, and a review of public spending might cure the disease that is afflicting the Brazilian economy.

The Asian Pivot: Equity Managers Look to Asia Even as Markets Plunge

November 1, 2018 | Gregory Silberman - Chief Investment Officer, Atlanta Capital Group
I had some Chinese last night and my local takeaway hero gave us some fortune cookies to go with it. My wisdom-in-a-biscuit read “The Chinese use two brush strokes to write the word ‘crisis.’ One brush stroke stands for danger; the other for opportunity.” This is a pertinent statement about the current development in Asia, and a timely one too. While half the world is predicting doom, there is another half that sees boom.

How History Matters in Post-Socialist Economies

October 29, 2018 | Aleksandr Gevorkyan - Assistant Professor of Economics, St. Johns University
Despite the independence premium in national policy and in parallel with evidence suggesting recent strong economic growth the post-socialist economies are yet to achieve the ideals announced at the outset of market reforms. Ironically, the most unfortunate economic plan was the 1990s script of transition from planned economy to free market in the EE and FSU...

The Parrot and Commodity Prices

October 28, 2018 | Otaviano Canuto - Principal, Center for Macroeconomics and Development
“Teach a parrot the terms ‘supply and demand’ and you’ve got an economist.” That parrot can explain to us what is happening with commodity prices. While, on the demand side, factors common across commodities can be highlighted, different supply conditions have mattered predominantly in most commodity price trajectories.

Working out Capital Management: A Beginner’s Guide to Corporate Financing

October 24, 2018 | Gerald Mwangi - , CEO
Extreme returns, reduced financial risks, well, every firm proceed with an outlook that revolves around such forecasts during capital budgeting. The term associated with such actions is corporate financing.

Connected insurance is here to stay—are you ready for this new insurance paradigm?

October 19, 2018 | Matteo Carbone - Insurtech Thought Leader, Keynote speaker and writer on insurance innovation
As of today, 22% of Italian households that have no home insurance are inclined to buy it—if it were connected insurance. This was the starting point of July’s meeting of the Observatory on Telematics, Connected Insurance and Innovation, an Ania–Bain think-tank, which has put together executives from 30 insurance groups within the Internet of Things (IoT) sector to discuss the great potential of connected insurance, as well as the challenges it poses to the insurance business.

Cryptocurrency tech needs a proper ecosystem to realize its true potential

October 17, 2018 | Jouko Ahvenainen - Serial-entrepreneur and co-founder, Grow VC Group
Blockchain, ICOs and digital securities (e.g. cryptocurrencies) have become the new kids on the finance block – and of course opinion is divided. Some believe they will take over the entire finance industry in a few years and make all traditional finance instruments and institutions obsolete. Others see ICOs and cryptocurrencies as the biggest bubble and/or scam of our time – in the US, there are now plaintiff lawyers that only focus on ICO lawsuits.

Econ 101: Trade deficits

October 16, 2018 | Warren Coats - Monetary Policy Expert, Advisor for Central Banks
To understand the relationship between our fiscal deficit and trade balance, it is essential to understand the macro level relationship of our trade deficit to the other broad categories of our national income and expenditures.