Fixing Greece: Sarkozy v Schaeble

Sabre rattling is a basic tool in politics but financial markets take fright at the thought of a fight. French President Sarkozy’s ‘softly-softly’ approach to the Greek debt crisis is to be commended, in contrast to German Finance Minister Schaeble’s blitz… The one thing that will fix the Greek debt problem is reducing their borrowing […]

The Yen and the Yuan

The striking feature of the recent crisis is how Asian currencies are perceived as safe havens. Despite Japan’s domestic difficulties, the JPY has powered along rising to 79.8 against the USD at one point yesterday. The CNY would have risen as well were it not heavily managed – instead, the Chinese authorities have to deal […]