Fundamental Analysis

Global trade might not be at its highest peak today, but it remains a critical aspect of the global economy. According to analysis, global trade has grown exponentially over the past century, largely on the back of increased economic integration through globalization. National economies are now part of a global economic system, which has contributed to the creation of wealth on … [Read more...] about What Impact Do Currency Fluctuations Have on The Economy?

On July 4, 2019, Reuters ran the following headline, “Sliding government bond yields keep dollar and euro under pressure.” A few paragraphs under the headline, the publication explained that increasing bond prices were pressuring the world’s most valuable currencies toward lower prices.  If you were keen enough while reading the above paragraph, you must have noticed some … [Read more...] about Bond Spreads As An Indicator For Currency Movements

Everything has a price, but if something is both in demand and finite, the price could easily explode. Such an asset has the potential to spark a speculative mania. The speculative mania is often confined in a bubble. A financial bubble could be understood as a marked increase in an asset’s price without a corresponding increase in its real intrinsic value. The belief that … [Read more...] about The Relationship Between Asset Bubbles and Recessions

If you are a keen follower of global financial developments, you must be familiar with these two terms, currency manipulation and quantitative easing (QE). The terms grew into the mainstream news at different times, each perpetuated by different circumstances. Although QE is an old concept, it grew into prominence in the wake of the 2007/08 Great Recession. Major central … [Read more...] about Is QE a Form of Currency Manipulation?

The 2000s have been an eventful period from the standpoint of global finance. Most conspicuous are the two instances of the global recession, one in 2007/08 and the second one still unfolding now. In both of these instances, central banks worldwide have had to go outside the ordinary to restore calm. Central banks have several tools they could deploy to combat the recession. … [Read more...] about The Role of Quantitative Easing in Income Inequality