Sudip Bandyopadhyay’s Blog

Misaligned exchange rates are more often than not a prelude to trade friction. Yet so far, in spite of sporadic outbreaks of warlike political rhetoric between the US and China, currency misalignments between the world’s surplus savings countries and the world’s borrowers and spenders have not ended in disaster. Buy America provisions and bail-outs for [...]

According to popular and probably unfounded belief, a Chinese curse wishes upon enemies that they may live in “interesting times”. Accursed or not, these times are nothing if not interesting. Policymakers have thrown away their maps and are leading us into the unknown. Each new initiative sets both markets and chatter aflutter, as people fret [...]

It is hardly surprising that even the brashest of boom towns is vulnerable in a financial crisis now tipping into a recession. But it did come as a bit of a surprise to Dubai.  It is, admittedly, a paradox that liquidity should be an issue in a region awash in surplus cash. But modern Dubai, [...]