Economic growth in Japan decelerates (again)

By Edgar Ortiz on August 24, 2015

The main topic of discussion about the Japanese economy over the last twenty years has been its deflation and low economic growth. Japan’s last big economic policy bet has been its quantitative easing (QE) program launched in April 2013.

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Japan and the Myth of Currency Depreciation and Exports

By Edgar Ortiz on August 17, 2015

In short, we pointed out that the depreciation of the yen was due to an increase in the monetary supply in Japan. This increased supply made it less profitable to hold the currency, and as a result, market participants increased their short positions on the yen against a backdrop of increasing dollar strength.

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The Chinese Stock Market, a learning problem

By Ricardo Rivera on August 3, 2015

The Chinese stock market’s turbulent journey continues and it’s unlikely to end any time soon. To understand the problem faced by the Chinese government, it’s important to highlight a few points that provide a different perspective.

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California and Puerto Rico: Debt Restructuring? Greece?

By Clynton López on July 13, 2015

Creditors of private and government debt generally perform credit analyses, first to grant a loan or purchase bonds, and then eventually to evaluate debt restructurings.

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The Red Dragon Casino

By Ricardo Rivera on July 6, 2015

In the West we have the notion that gambling and the concept of fortune are ingrained in Chinese culture. This is probably because gambling carries implicit notions of individualism, such as property and risk. Individualism that is a quality of the human condition but has never before been experienced by this Asian country with the same vitality as is common in the West.

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The Yen’s Depreciation

By Edgar Ortiz on June 30, 2015

The exchange rate in Japan has settled around 123.70 yen per US dollar. [1] When quantitative easing (QE) was launched in Japan in April 2013, the Japanese yen (JPY) was trading at around 95 yen per USD.

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The Greek Crisis, the US Financial System, and Adverse Selection?

By Clynton López on June 22, 2015

Greece’s delayed payment on its debt, its possible default, and an eventual exit from the euro have been some of the most widely covered news stories in the media over the last weeks. What would be the implications of a Greek default? What would be the implications of an eventual Greek exit from the euro?

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Greek Debt Exposure and its Possible Consequences

By Daniel Fernández on June 16, 2015

Much has changed since the Greek rescue back in February/March, 2012.  The negotiation power of both parties has changed considerably.  The structure of Greek debt holders flipped between private and public.

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Is the United States in a Real Economic Recovery?

By Clynton López on June 6, 2015

When talking about economic recovery, a distinction must be made between short-term and long-term effects. We’ll label as short-term effects those that last less than a year, and as mid and long term those that last more than a year. In practice, three to five years are needed to determine if effects are long lasting or not.

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