the hopes that the demand from these speculators will help reflate
By Alexander Friedman/Zurich The 21st-century economy has thus far been shaped by capital flows from China to the United States -- a pattern that has suppressed global interest rates, helped to reflate
the developed world's leverage bubble, and, through its impact on the currency market, fuelled China's meteoric rise.
Japan's decisive moves to reflate
its economy will support growth in the near term, but it will need to manage the twin challenge of providing near-term stimulus and achieving longer-term sustainability," the draft communique said, although the version circulated by Britain and seen by Reuters was put together before the recent market turmoil.
The foreign exchange market is also likely to feature high on the agenda after the dollar topped 100 yen for the first time in more than four years overnight, as Tokyo's aggressive stimulus efforts to reflate
the Japanese economy continue to depress its currency.
The US economy is on a growth path, Europe is in a mild recession, Japan is determined to reflate
and Chinese GDP is still near eight per cent, with emerging market growth solidly above five per cent.
It means that the BOJ is deathly serious about their plans to reflate
the economy," said Neal Gilbert, market strategist at GFT Forex, in a note to clients.
Those on the left demanded increased social spending to ease suffering and reflate
the sagging economy, while those on the right insisted that only steep cuts and sound monetary policies could create the lasting prosperity that would benefit all.
But "to reflate
the economy," he assured us, "the Fed doesn't have to restore business investment; any kind of increase in demand will do.
These countries keep interest rates close to zero in order to reflate
their and the world's economies.
In Britain a lot of political forces then exerted pressure on the government to reflate
the economy while the rules of the Gold Standard required to keep very high interest rates.
China's growth is expected to slow but experience a soft landing as the authorities move to reflate
early in 2012.
Now, if that is so, we say we are going to have no option but to reflate
even more on our own.
This suggests another rule during recoveries: asset prices begin to reflate
So, Roosevelt was not wrong in trying to reflate
, but though his general idea was right, the discretionary aspect of his policy was terrifying.
myself overnight and come out bold and selective.