European Tribune - Comments - What China wants

What China wants | 81 comments (81 topical, 0 editorial, 0 hidden)

Re: Its not a matter of whether its the ... (4.00 / 3)

The capacity for dealing with it without changing the cash rate is the stock of foreign exchange assets. That's no necessarily in proportion to the size of the domestic GDP.

I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Tue Mar 16th, 2010 at 06:54:53 PM EST
[ Parent ]

Re: Its not a matter of whether its the ... (none / 1)

But the required change in the cash rate is smaller for the large economy, right?

- Jake

If you only spend 20 minutes of the rest of your life on economics, go spend them here.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Tue Mar 16th, 2010 at 07:33:58 PM EST
[ Parent ]

Re: Its not a matter of whether its the ... (4.00 / 4)

Not necessarily, at least not if we are talking about high income economies with populations in the 10m's and more ... there is, after all, more money total to be made in a successful speculative attack in the currency of a larger economy than in a successful speculative attack on the currency of a smaller economy.

I think you are assuming a constant size of the swarm of sharks.

I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Tue Mar 16th, 2010 at 10:28:25 PM EST
[ Parent ]

Re: Its not a matter of whether its the ... (none / 1)

Touché. I hadn't thought about that.

- Jake

If you only spend 20 minutes of the rest of your life on economics, go spend them here.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Wed Mar 17th, 2010 at 04:59:55 AM EST
[ Parent ]

Re: Its not a matter of whether its the ... (none / 0)

Neither had I.

The brainless should not be in banking -- Willem Buiter

by Migeru (migeru at eurotrib dot com) on Wed Mar 17th, 2010 at 05:20:49 AM EST
[ Parent ]

What China wants | 81 comments (81 topical, 0 editorial, 0 hidden)

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