🚨New publication with Kristijan Kotarski: Enduring Structural Power? Assessing the Dominance of the Anglosphere in Global Finance Before the Trump Turn Includes novel visualizations of global finance (banking, portfolio inv & FDI) showing persistent US centrality hrcak.srce.hr/clanak/487488

"The AI infrastructure build-out is so gigantic that in the past 6 months, it contributed more to the growth of the U.S. economy than /all of consumer spending/" - @mims.bsky.social My takeway is that The US has gone ALL IN BET OF THE 21st Century on AI, while China has gone all in on green tech

The FT got an ex-central banker to write a defence of cb independence. amazing how spectre of fiscal dominance spooks Haldane into forgetting innovations in central banking he literally introduced during the crisis, like sovereign market market of last resort www.ft.com/content/2372...

New (open access!) paper out now with Eric Helleiner and Hongying Wang in New Political Economy: "A less reluctant (green) Atlas? Explaining the People’s Bank of China’s distinctive environmental shift" 1/ A brief thread 🧵 doi.org/10.1080/1356...

Great essay on the madness of the "dead internet" and AI slop, drawing on @maxread.info www.ft.com/content/5d06...

European car executives never miss a chance to denounce climate regulation, even when it's well known China ALSO imposed such rules on its own industry. No guys, it was your complacent asses.

Higher ed is the most geographically distributed major growth-generating sector we have. The destruction of universities makes no sense if your priorities are growth, or rebalancing the economy. Only ideological prejudice explains this course of action. www.theguardian.com/commentisfre...

Fitting amidst all the geopolitical turmoil of the last days, my article on global finance in China in an age of geopolitics was just published in @ripejournal.bsky.social 🥳 www.tandfonline.com/doi/full/10....

Quite wonderful find by this FT team. A Chinese small business that makes MAGA merch on.ft.com/4cAH6tE

Maybe of interest to @adamtooze.bsky.social that FOMC members already complained about 'fan-fi' after the 2019 repo spike (from Oct 4, 2019 meeting)

It's that time of crisis again where Adam Tooze enters his relentless live-blogging phase

My contrarian take is that swap lines are entirely overhyped. they offer Europeans (and some others) preferential terms of dollar borrowing in crises. without swap lines, the ECB etc can use the FIMA repo facility like everyone else.

“Everyone is worried about the basis trade” Check this great article in hedge funds by Paul. Among other things it uses an update to our article www.bis.org/publ/qtrpdf/... (check update here: papers.ssrn.com/sol3/papers....), linking MMF to hedge funds’ basis trade through sponsored repo 1/

In his 2021 NPE article on swap lines, @fabianpape.bsky.social points not only to their backstopping/stabilizing function, but also their use as a lever of US monetary policy to intervene in offshore dollar markets and pull global capital back to the US. www.tandfonline.com/doi/full/10....

Strongly agree with this.

The Labour government, with a majority in Parliament, is apparently planning to redistribute from the disabled to US Big Tech. www.theguardian.com/politics/202...

European officials beginning to wargame what it would look like if the Fed pulled their swaps under political pressure. The Fed got the State Dept's OK for each of its swap lines in 2008, particularly important for EM ones. Unclear tho if it'd pull one of the standing ones from Europe, Japan, etc.

I can't help noticing that Labour promised not to introduce a wealth tax and not to return to austerity and that only one of those promises has been kept.

Badenoch is to end the UK's bipartisan consensus on climate policy. She is ditching a rare achievement of the Tories' time in government, the 2019 law to make the Paris Agreement's net zero target legally binding. Here are three reasons why Badenoch is wrong: .../1 www.bbc.co.uk/news/article...

Same.

There's an analogy between what is happening to UK universities and post-Bretton Woods financialisation of US economy. The pivot is from producing things of use value (goods/education), to selling paper on the international market. The global demand for UK paper is still there, and some people...

It feels like the English speaking liberal media have been entirely unconcerned with German political economic realities, and considered debt brake reform a done deal because it fits their priors that its both logical and necessary. against that, @adamtooze.bsky.social provides some helpful nuance

I've written about the method in the DOGE USAID madness. It's not bullying as power, it's good Wall Street Consensus on steroids, by and for private equity www.phenomenalworld.org/analysis/how...

Great new paper from Yesha Yadav and Josh Younger on the perils and promises (both realistic and lofty) of centrally clearing Treasuries. "All things considered, it is not clear if a broad clearing mandate will materially improve the elasticity of dealers making these markets."

Nice new paper from Rich Clarida and Kate Judge: "Emergency Lending by the Federal Reserve"

Ouch

Interesting paper, especially in highlighting the need to think about credit creation in the payment chains linking global production networks. Maybe more relevant for RMB internationalisation though...