In a deflationary world at the ZLB we need ‘competitive devaluations’

Sunday we got some bad news, which many wrongly will see as good news – this is from Reuters: China and the United States on Sunday committed anew to refrain from competitive currency devaluations, and China said it would continue an orderly transition to a market-oriented exchange rate for the yuan CNY=CFXS. …Both countries said […]

Did you book your speaker? Book me

Did you book your speaker for this year’s seminar or conference? You might as well book me! See a sample of my speeches here. To book me internationally see here. In Denmark see here. Or contact me directly: LC@mamoadvisory.com Recent speaking topics include: Populism and the global economy and markets 1930s style politics: Monetary policy failure […]

The ruble has appreciated exactly BECAUSE the sanctions are working

The question I have been asked most over the last week is why the Russian ruble is been appreciating despite the fact Russia has been hit by extensive economic sanctions. I must honestly admit that since the sanctions were introduced I have not spent much time following the development of the ruble – or rather […]

The Christensen Media Blitz on the euro, ‘Open Borders’, China and ‘currency war’

I have been in a bit of media blitz recently. Here is some of it: I have been on Russia Today’s Boom-Bust show to talk to Ameera David about the euro and why I think the euro is a Monetary Strangulation Mechanism. Watch here (after 3:35). And while we are talking about the euro here is an […]

The cost of the Sino-US FX deal: Surging money market rates (in Hong Kong)

This is from Financial Times’ FT Fast this morning: A key lending rate between Hong Kong banks jumped to its highest level since February, potentially making it more expensive to short the renminbi. The overnight CNH-Hong Kong Interbank Offer Rate (Hibor), a daily benchmark for offshore renminbi interbank lending, jumped to 5.446 per cent on […]

Russia: From crony capitalism to planned economy in three weeks

For more than travel 20 years I have worked professionally and travelled extensively in Central and Eastern Europe – including in Russia and Ukraine. My Polish and Lithuanian friends again and again over the years have warned me about what have now happened and I must admit that while I 15 years ago was sceptical […]

Soon everybody will be scared about ‘currency war’ again – we should be celebrating

With the dollar continuing to strengthen and now the Japanese yen starting to take off as well central bankers in the US and Japan are likely increasingly becoming worried about the deflationary tendencies of stronger currencies and recent comments from both countries’ central banks indicate that they will not allow their currencies to strengthen dramatically […]

China should float the renminbi

The big news of the day is that the Chinese authorities have allowed the renminbi to depreciate by 2%. This has triggered the normal sensationalist warnings about an upcoming “currency war”. I must say I find these warnings to be rather uneducated about monetary theory and about monetary history. Hence, normally it is said that devaluations […]

My speaking engagements in Q1 – do you want to see me?

I have been lucky to be very busy since I resigned from Danske Bank back in May – both with my advisory business (Markets & Money Advisory), my commentary and my speaking engagements and all indications are that I will continue to be busy for the rest of the year, but there is still a […]

An intra-European hot-pot effect

This morning I feel like qouting myself: Over the past month, CEE and other non-euro European currencies have indeed been strengthening. This is ‘forcing’ central banks from the Swedish Riksbank to the Polish central bank to cut interest rates. So, we are getting a double effect of European monetary policy. The ECB is easing monetary policy, […]