speaking of derisking and the ideological machinations of #WallStreetConsensus, here is the IMF blaming Ghana's SOEs for fiscal burden of derisking private power producers
as we argued with @nssylla - Ghana provides some important lessons about the fiscal burden of derisking, kind of crazy that IMF chooses to frame it as a 'managing State Owned Enterprises' risk.
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the #GlobalGateway strategy seeks to 'unleash' EUR300 bn for infrastructure investments around the world based on 'values, transparency and sustainability'
wonder what values embodied by (German) Compact with Africa push for PPPs in health or education that force user-fees and de-facto privatisation of social infrastructure
what does balance sheet of central bank w deeply unconventional approach to financial globalisation look like?
@CentralBank_TR Turkey: no capital controls/interest rates to contain non/resident outflows, instead burn fx reserves and failing to contain TRY depreciation 1/n
asset side looks familiar to students of EM:
the action in foreign assets, while traditional business of central banks - issuing reserves to banking system - around 15% of assets, and outright ownership of TRY sovvies negligible
the 'Foreign Assets' rubric is a big black box:
other EM cbs typically report Net Foreign Assets so things like cb fx swaps are accounted but clearly not here
lowering interest rates and then burning through your hard cash is an interesting way of managing your exchange rate. #whateverittakesbutnocapitalcontrols
historians of the global financial cycle will have a great time explaining Erdogan as inexplicably contrarian till the bitter end (30?50?)
guys, the analogy with China in the 80s is wrong not because of industrial policy, but because China was basically closed to capital flows, whereas Turkey stubbornly refuse to follow that path and impose capital controls.
thought Climate/Nature as an Asset Class will test limits of financial capitalism, move us in new supercycle
but w Omicron it starts to sound like stupid Hollywood sci-fi where mutant virus destroys humanity because we trusted Blackstone/Blackrock to run hospitals.