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(1) Do Not Hedge Stocks With USD/CNY (2 min read)
MS Asia FX strategist Mirza Baig gives his take on this week’s turbulence in Chinese equity markets. He sees a limited fallout on FX given flow buffers and PBoC smoothing.
(Mirza Baig│29th July, 2021)
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(2) Welcome to Inflation (4 min read)
In a provocative take on inflation, John Welch decomposes the COVID shock into aggregate demand and aggregate supply components for both the US and Brazil. With negative supply shocks dominating in the US and positive demand shocks in the pipeline, he see risks of a Brazil-like stagflationary performance.
(John Welch│29th July, 2021)
Making The Digital Money Revolution Work for All (IMF Blogs, 4 min read)
Substantial Further Progress? Not Yet, Says the Fed (PIMCO, 4 min read)
China’s Animal Spirits Deficit (Project Syndicate, 3 min read)