Venezuela’s economic difficulties include very high inflation which threatens to become another example of hyperinflation. But what is this and why is it historically quite rare? * Inflation in Venezuela has recently been reported as reaching 46,000% with the IMF … Continued
P2P (peer-to-peer) lending is the biggest and most developed form of alternative finance. But does it have any enduring value to add in the financial system? * P2P lending platforms have sprung up in many countries since the global financial crisis, … Continued
As we commemorate the 10th anniversary of the Lehman Brothers bankruptcy, which marked the point where the US financial system truly moved into crisis, it’s worth reviewing the innovations that led to the real estate bubble that lay behind Lehman’s … Continued
The MFin is 10 years old and I’m stepping down as director. A few thoughts on the last decade. * Nearly 11 years ago, I was asked to create a new post-experience master of finance degree for the University of … Continued
The high and rising level of Chinese corporate and local government debt has been a concern for several years. Recent data from the People’s Bank of China suggests the true figure may be much higher than we thought, but things … Continued
In part of my new MFin elective Understanding the Global Economy and Financial System I explore the changing views of economists on international trade, which has been one of the most powerful causes of global economic growth over centuries. * The … Continued
The first part of my new MFin elective Understanding the World Economy and Financial System next term will explore the question, why are some countries richer than others? * One of the most important, interesting but hotly contested questions in economics … Continued
Former IMF Chief Economist Eswar Prasad’s excellent book Gaining Currency – The Rise of The Renminbi starts with a fascinating chapter on China’s monetary history, the longest by far of any country. The book is ultimately a persuasive answer to the … Continued
It’s generally agreed that we face an unusually uncertain outlook this year: elections in France and Germany, the path for the UK’s leaving of the European Union and above all, how will President Trump act? Underneath the political fog there … Continued
Every year is getting shorter, never seem to find the time.Plans that either come to naught or half a page of scribbled lines.Hanging on in quiet desperation is the English way.The time is gone, the song is over, thought I’d … Continued
Single cause explanations of events such as Brexit or the Trump victory are too simple. But there is an important and worrying economic background fact to both, which is that the Anglo-US style of western capitalism seems to have stopped … Continued
China’s corporate debt is high and rising fast. Most of it is in the state owned enterprise sector and is borrowed from state owned banks. So the debt problem and the responsibility for fixing it lies with the government. * Despite … Continued
The possibility that central banks might resort to extreme monetary measures, including helicopter money, is much debated in monetary policy circles. But what is “helicopter money”? * In normal times, central banks in developed countries try to control inflation and … Continued
A bond is a long term debt security, which can be issued by a government, company or even a charity. This post describes the main features of bonds. * A bond is a debt security for which the term (maturity) … Continued
Financial services are provided mainly in two ways: by banks and by markets. Here we outline the key features of financial markets * A market is a very general concept of any arrangement which brings together users for mutual advantage. … Continued