Modern Monetary Theory: it’s a currency question

Modern Monetary Theory (MMT) is a political reaction to the constraints and costs of private financing for public spending. It is the explicit position that fiscal policy and monetary policy should be coordinated in order to avoid these constraints and costs. History is relevant. The future is untold. Money is currency is money. I hope …read more

ESG and Currency

Co-authored with Aaron Cantrell. This article first appeared on Responsible-Investor.com The advancement of ESG data access and analysis gives investors the chance to expand the scope of their sustainability objectives and investment programs, including in new asset classes. Record Currency Management has been building the research and investment infrastructure for ESG integration in currency. The …read more

Swedish Krona Outlook

The Swedish krona had a tough start to the year having depreciated over 5% against a basket of G4 currencies. This blog post outlines the outlook for the krona with an emphasis on its valuation versus G10 currencies, macroeconomic performance, external balances and the Riksbank’s policy trajectory. Potential upside and downside risks are inspected in …read more

Trade, Trump and stability of the Chinese yuan

The concept of stability in the Chinese currency has been of great interest to investors, especially since the introduction of the People’s Bank of China’s (PBoC) preferred measure of CNY strength, the ‘CFETS index’. As it stands, the official stance of Chinese policymakers is to manage the bilateral exchange rate versus USD such that CNY …read more

Why is FX volatility low? An econometric model

2018 has been an eventful year, with an ongoing trade war, tightening monetary policy from the Federal Reserve, increasing pressure in the Brexit negotiations, and a new Italian government which has resurrected fears about the stability of the Eurozone Despite this, G10 FX volatility has remained remarkably subdued In this blog post, we construct an econometric model to …read more