Given my two decades worth of research on exchange rates I was intrigued by this new ECB paper looking at which FX valuation models work best. Their results confirm that work I’ve done on valuations – that simplicity is best. Take a read of my summary of the paper for the details.
For our second Deep Dive, we summarise another ECB paper. This time on what determines a country’s bond market being viewed as a safe asset. It’s a very comprehensive, looking at DM and EM markets and doesn’t bode well for China’s bonds being viewed as a safe haven. Full summary below.
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