Page 13 - July-August 2018 GSE Report Flip Book

TRUMP ADMINISTRATION
JJUALN. U- ARUYG. 22001188
the other side, deliberately cut back foreign investment, politicizing capital flows.
Corporate tax revenue
declining significantly
In addition, we must be mindful of long-observed knock-on effects from
tighter US monetary conditions, given the large stock of dollar borrowing by
non-banks outside the United States, which has now reached $11.5 trillion.
...Policymakers in advanced economies should not shrug off the growing evidence that abrupt exchange rate depreciations reduce investment and
economic growth in emerging market economies. This has implications for
everybody, in that weaker economic activity reduces demand for exports
from advanced economies. In the long term, protectionism will bring not gain but only pain. Not just for the United States, but for us all. (ZeroHedge.
com, Tyler Durden, 08/27/18; Global Market Structures and the High Price of
Protectionism, Bank for International Settlement, 08/25/18) Central bank liquidity
declining
CENTRAL BANK LIQUIDITY DECLINING
29 August 2018
FX Daily - Is t
EUR/USD has completed a f
range so far this year. Is that
argue in the affirmative.
First, even if the EUR/USD r
it is not unprecedented. 201 narrow ranges (chart 1). Cur be in line with a narrow rang (chart 2). Second, a number been helping EUR/USD wea Relative US-European data and are now favouring Euro differentials peaked in June ( (10-year rates) and are now war risks have turned more negative for the dollar becau Europe, the autos investigati ice, and another round of tari be disproportionately more n European economy.
The biggest outstanding risk remains Italy. But with sprea the year's wides the market i fundamentals far worse than importantly, there is yet little other European markets – if European equities do not car single currency to do so eith should come soon once Italy 2019 are published later in S
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