Hyperinflation represents one of the scenarios which makes investors tremble, with individuals imagining themselves pushing wheelbarrows full of paper currency to buy a loaf of bread. Scenes from Zimbabwe begin flooding their minds, with its (in)famous one hundred trillion dollar note or from Germany, with one US dollar going from being worth 4.2 marks prior
(Central) Banking
14
Jan
Jan
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(Why) Does China Devalue Its Currency?
It is difficult to think of a field more affected by hypocrisy than economics and in the spirit of just that, we are convinced most readers are well aware of the fact that China tends to be portrayed as the “monetary bad guy” for devaluing its currency, with many Western counterparts (from government officials to
03
Jan
Jan
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Will China Create Its Own Stablecoin?
Through a previous article, we have made it clear that no, China does not hate blockchain technology in general and, on the contrary, is interested in putting it to good use as long as it is able to control the end result. This state of affairs may seem ironic in light of the fact that,
02
Dec
Dec
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The People’s Bank of China (PBOC) vs. Western Counterparts
The People’s Bank of China (abbreviated PBC, or more commonly PBOC) has been the world’s “richest” central bank by asset valuation since July of 2017, a valuation north of $3 trillion at the moment of writing. Just like any other central bank, the PBOC has responsibilities with respect to setting monetary policy and acting as
16
Oct
Oct
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The (Subpar) Medical System of China: Problems, Threats and Opportunities
The medical system represents yet another case study involving a service which hasn’t exactly managed to keep up (in a directly proportionate manner, that is) with China’s explosive multi-decade economic growth… at least, not in a homogeneous manner. Of course, as pretty much always, it is possible to “cheat” by cherry-picking examples from affluent regions
07
Jul
Jul
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China’s Banking System: Past, Present and Future
We’ve covered various concerns pertaining to China’s shadow banking system in a previous article, so it makes sense to also pay attention to… well, its “actual” banking system. And, right off the bat, let’s just say the “Past” dimension of this article will be very brief, for the simple fact that there isn’t really all
06
Jul
Jul
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Shadow Banking in China: Is Enough Being Done?
In 2019, we can confirm the first full-year decline in terms of Chinese shadow banking volume in over 10 years (2018 compared to 2017), after the authorities started paying serious attention to this dimension of the financial sector as of 2017. Still, we’re looking at a whopping $9.1 trillion in outstanding shadow banking loans, which
13
Jun
Jun
- 1 Comment
Could China Be at the Center of the Next Monetary System?
For a reasonably long period of time, currencies were fully backed by gold or silver. In other words, a piece of paper money was simply a bank note (hence the name, an etymology long-forgotten as far as most people are concerned) that granted you the right to receive a certain amount of precious metals, should