02 27 2019 | by Victor Xing | Economics
12 09 2018 | by Victor Xing | Capital Markets
Kekselias performance review: 1.31% YTD total return
10 14 2018 | by Victor Xing | Capital Markets
Roundabout path in the snap-back of long-term bond yields
09 23 2018 | by Victor Xing | Central Banks
Calm before the storm as quantitative tightening looms
05 20 2018 | by Victor Xing | Central Banks
Alternative narrative on the natural rate of interest
01 07 2018 | by Victor Xing | Capital Markets
Flatter yield curve a symptom of ineffective tightening
12 04 2017 | by Victor Xing | Central Banks
Bond market term premium and wolves of Yellowstone
10 17 2017 | by Victor Xing | Capital Markets
How we learned to stop worrying and love the “fake markets”
09 20 2017 | by Victor Xing | Central Banks
QE’s distributional effects a rising political liability
04 18 2017 | by Victor Xing | Capital Markets
Persistent low volatility threatens active fund managers
09 23 2015 | by Victor Xing | Central Banks
To which school of economic thought does PBOC (People’s Bank of China) Governor Zhou Xiaochuan belong to?
Governor Zhou is a pragmatic Keynesian policy maker. It is worth noting that the PBOC is not an independent central bank, and Chinese policy makers routinely coordinate fiscal and monetary policies to achieve both short-term and medium-term economic objectives (this is unusual in other economies, as fiscal policy changes tend be harder to enact due to political wrangling).
Therefore, Governor Zhou has the luxury of deferring monetary policy responses if a fiscal response is available. Yet, a lack of independence is a double-edged sword. There had been more than one occasions that Governor Zhou was forced to backtrack from earlier statements of maintaining current policy by announcing sudden rate cuts. Outside observers would jokingly comment that “Governor Zhou was tapped on the shoulder by his boss.”
Governor Zhou has questioned some of the more aggressive Keynesian policies, such as explicit forward guidance, and he is rather humble in acknowledging central bank limitations and.
Overall, I would call Governor Zhou a pragmatic Keynesian policy maker who is open to alternative views and aware of limits (as well as costs) of central bank monetary policies.
Next article09 23 2015 | by Victor Xing | Capital Markets