Global Emerging Market Economist
Erik is your typical EM aficionado. He has worked for the IMF, lived several years in Hong Kong and has an Indian wife. His motto: Get the bigger picture.
By Erik Lueth - August 16, 2017 2 mins
This is the third in a series of blogs that looks at the risks of a Chinese hard landing. In the first we argued that China still has important defences in the form of fiscal space. In the second, we discussed why the odds of financial crisis are not that high. In this blog, we ask whether China sits on a property bubble, which tend to end in violent and drawn-out recessions.
By Erik Lueth - July 04, 2017 2 mins
History is littered with episodes where the rules of economics were declared dead, only for these rules to return with a vengeance. You remember the ‘end of the business cycle’ debate in the late 90s or the ‘great moderation’ paradigm of the early 00s? Despite these precedents and despite overwhelming evidence that large debt build-ups can end in tears, we believe a Chinese financial crisis is not that likely over the next 2-3 years.
By Erik Lueth - June 27, 2017 3 mins
Just as Hobbes’ Leviathan saves the people from the horrors of constant struggle and chaos, we ask whether the Chinese state can save the people from a hard landing.
By Erik Lueth - June 15, 2017 2 mins
We are fast approaching the Chinese leadership reshuffle in late 2017. Attention could turn from the current period of relative calm and stability to the medium-term challenges lying ahead. In this context, we are likely to encounter three myths about China’s growth slowdown.
By Erik Lueth - June 01, 2017 2 mins
Mexico's economy has faced no shortage of headwinds over the past few years. As a manufacturing hub, it suffered more than others from the post-2008 weakness in the global cycle. It was hit hard by the collapse in oil prices in 2014. And in 2016, it became a key target of President Trump’s campaign against trade and outsourcing. However, there are signs that the headwinds facing Mexico's economies could now be abating.
By Erik Lueth - February 10, 2017 2 mins
They say that idealists don’t care about the short run, while cynics don’t care about the long run. We like to think of ourselves as realists who believe that what you do in the short run determines the long run. This is how we look at India.
By Erik Lueth - January 16, 2017 2 mins
Only when the tide goes out do you discover who’s been swimming naked, as Warren Buffett remarked. As far as EMs are concerned, we believe they are well positioned for tighter liquidity in 2017, i.e. greater external funding pressures and higher interest rates. This is due to strong fundamentals and because EMs have already adjusted a great deal to the new environment.
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