Dual Currency Notes – monetize your indifference to currencies: Holding cash these days is not attractive. Dual Currency Notes are an interesting short-term alternative for yield-enhancement, in particular for investors with a portfolio diversified across multiple currencies. How does their framework look like and what shall be considered?
The 2 percent solution – a calculated or arbitrary inflation target? All the major western central banks strive for an inflation of 2 percent over the medium to long term. What is the reasoning behind this target which has been regularly used as justification by central bankers for their ultra-expansive monetary policies?
USD as the wildcard in several market narratives: Currently the US dollar is the wildcard in various currency market narratives. At the moment, three appear to be shaping the development of the dollar: Economic policy, uncertainty rules and purchase power parity. We look at the battle of them.
The USD declined further in May as vaccination and recovery momentum increased in other economies...» more