Sentences with phrase «financial repression by»

Not exact matches

Financial repression is a term describing measures used by governments to channel funds to themselves as a form of debt reduction.

China's debt problems, in other words, can not be resolved administratively, by fixing the shadow banking system, by imposing discipline on borrowers, or indeed by eliminating financial repression (much of which, by the way, has already been squeezed out of the system by lower nominal GDP growth).

China's huge portfolio of NPLs at the end of the 1990s (perhaps as much as 40 % of total loans) was resolved by a decade of severe financial repression, so that lending rates of around 7 % — in an economy in which GDP grew nominally by 18 - 20 % and the GDP deflator usually exceed 8 % — implied substantial debt forgiveness.

Leland describes the Chinese reform as a reversal of financial repression and this repression in the context of the Chinese economy is the oppression of consumers and households by state organizations through its economic systems.

Financial repression includes directed lending to government by captive domestic audiences (such as pension funds), explicit or implicit caps on interest rates, regulation of cross-border capital movements, and (generally) a tighter connection between government and banks.

We already knew that the Chinese financial system was completely distorted from years of regulatory repression and crony capitalism, as a whole new report on finance in China by The Economist demonstrates (see the editorial here, and the report starting here).

Asia's sovereign bonds will likely be less endangered by rising interest rates and less vulnerable to Western policies of financial repression, which erode the purchasing power of their citizens» savings.

One is the ultra-low level of interest rates on GICs, bonds and other cash - equivalent investments, a phenomenon dubbed «financial repression» and perpetrated by central banks around the world.

And we all know that the phenomenon of «financial repression» practiced by the world's central banks has conspired to keep interest rates low for the foreseeable future, which makes counting on highly taxed interest income from fixed - income investments equally dodgy.

Financial repression was discussed in the early»70s by Stanford economists.

His paper discusses the effects of financial repression on portfolio stock and bond allocations and by implication the effects on real estate and particularly apartment building investments.

Global financial repression picks up steam, led by India.

[5] Thus, financial repression is most successful in liquidating debts when accompanied by inflation and can be considered a form of taxation, [6] or alternatively a form of debasement.

Financial repression is intended to improve near - term growth by encouraging consumption and discouraging savings.

On 29 November 2012 GMO published an article by James called The 13th Labour of Hercules: Capital Preservation in the Age of Financial Repression