Trade Wars – When Nash Equilibrium meets Deglobalization

Trade war – noun ­– “a situation in which countries try to damage each other’s trade, typically by the imposition of tariffs or quota restrictions.”. The US-China trade war, despite the looks of being surging now, it has already started by 2016 when Donald Trump was fighting for presidency: “Any country that devalues their currency […]

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The Future of U.S. Rate Regime: FED’ s Challenges

The Monetary Divergence The Federal Reserve, as widely expected, announced on March the 15th that it intends to raise interest rate to 0.75% to 1%, up from the 0.5% to 0.75% range set in December 2016. This is the third rate hike from the FED since the financial crisis. The Federal Open Market Committee (the FOMC, the interest rate-setting body […]

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Fed Funds Rate: decision or reaction?

This article aims to analyse the yield curve of the US Treasury bond form 1962 until now. The analysis has been carried forward with monthly data from FRED (Federal Reserve Economic Database provided by the FED of Saint Louis). The final goal is to spot possible fixed income strategies from the expected fed decision of raising […]

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