David Beckworth thinks the Fed is the global central bank (excerpt):
The Monetary Superpower: As Strong As Ever
[A] defining feature of the US financial system is that its central bank, the Federal Reserve, has inordinate influence over global monetary conditions. Because of this influence, it shapes the growth path of global aggregate demand more than any other central bank does. This global reach of the Federal Reserve arises for three reasons.
This is slowly making the rounds (excerpt):
Where Crony Capitalism Rose and Prosperity Fell (and Vice Versa)
By Matthew A. WinklerWith populists emulating autocrats from Azerbaijan to Zimbabwe, free markets are being forced to confront crony capitalism.
One response is visible in the reversal of fortunes of Malaysia and Indonesia. The two nations still wrestle with the politics of ethnicity and religion at odds with the capitalism of market competition….
…But the historic advantage that Malaysia, with just 30 million people, has enjoyed over its Southeast Asian neighbor of 250 million is disappearing amid a barrage of corruption allegations challenging Prime Minister Najib Razak….
The NEER and REER page has been updated, as has the Google Docs version.
Summary
Both the NEER and REER continued to decline in January, by 0.46% and 0.44% respectively, though the depreciation pace has dropped off substantially. Again, this marks new historical lows for these indices (since the beginning of the series in January 2000).
Looking at the breakdown, however, it’s really stability against the USD (and some gains against the GBP and INR), and negative against virtually everyone else. The biggest dropoff is against the AUD, where the MYR has been on an 8 month losing streak for a cumulative -11.8%.
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