The following observations are drawn from the weekly report of Japan’s Ministry of Finance unless noted otherwise. We use the weekly data instead of monthly to identify changes of trend earlier. We use simple convention of the week by the last rather than the first day. That means that the report for the week ending April …
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Tag Archive: capital flows
(1) What Determines FX Rates?
The effects of so-called “currency wars” and other central bank actions are small compared to the long-term impact made by these five catalysts, which include credit cycles, trade balance, differences in economic growth, and more.
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Why did the Swiss franc spike? Lack of Capital Outflows
There is a straightforward answer to the question in the headline: more money has been trying to get into Switzerland than get out, which didn’t affect the exchange rate as long as the Swiss National Bank bought foreign currency. As soon as they stop...
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