Understanding the Surplus

By Jorge Eduardo García García on January 26, 2017

The main problem arises when a government deficit comes with a primary balance deficit. The primary balance is the difference between government revenue and expenses, without taking into account the cost of the debt (interests).

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Why Didn’t the Depreciation of the Yen Help Exporters?

By Edgar Ortiz on December 13, 2016

Why didn’t the depreciation of the yen help exporters? Primarily, because large exporters are also large importers.

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Trump’s Victory Confirms the Peso’s Weakness

By Edgar Ortiz on December 1, 2016

As long as people are pessimistic about the future of the Mexican economy, the peso will continue to fall. It is still uncertain what Donald Trump’s government can and will do.

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Switzerland as a Protection Against Uncertainty: A Problem for Its Domestic Market?

By Edgar Fernández Vidal on November 28, 2016

When it comes to the equity market, the Swiss Market Index (SMI) continues to trade 10% below the figure for 2007. Despite the economy’s strong growth since then, the multiples at which the shares are currently listed are lower from those of 2007.

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Mexico’s Depreciated Peso and a Formula That Doesn’t Work

By Jorge Eduardo García García on November 21, 2016

Mexico’s position and its depreciated currency is not unique in the world; since 2014 Japan has also lost about 28% of the yen’s value against the dollar and its exports have fallen around 10% since.

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Nominal GDP Target for the United States?

By Clynton López on November 17, 2016

During the last seven years credit volumes did not grow as as in previous liquidity periods, despite having the federal reserve interest rates close to 0%. This means the US economy is not expanding.

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Changing the Chinese Economic Model

By Roberto Morales Chang on November 14, 2016

If banks could understand the opportunities that could be created by slightly changing the current scheme, China coud grow at a pase faster than 5%.

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The Strengthening of the Dollar and the Upcoming US elections Mean Tough Times for Mexico

By Edgar Ortiz on November 9, 2016

Since early 2016, producer prices have been growing at increasing rates. High production costs create another obstacle for the struggling industrial sector.

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China Burns Through Its Foreign Reserves Defending the Yuan

By Daniel Fernández on November 6, 2016

The yuan depreciated by nearly 8% since May 2015: it had been appreciating since the last time the exchange rate was established.

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Inflation Target or GDP Target: More Ideology?

By Clynton López on November 2, 2016

Today, the central bank debate focuses on whether they should continue to use the inflation target as the main objective for monetary policies or if it should change to a nominal GDP target.

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