China Macroeconomics & Academia

Christopher Balding

Macroeconomics

<p>From late January through late April, the correlation broke down significantly and has only recently returned to historical norms.  It is too soon to tell if this is a return to historical policy and that three month period was an aberration or whether the PBOC is introducing greater volatility to the expected relationship.</p>

From late January through late April, the correlation broke down significantly and has only recently returned to historical norms.  It is too soon to tell if this is a return to historical policy and that three month period was an aberration or whether the PBOC is introducing greater volatility to the expected relationship.

MSCI AC Asia ex Japan Index (MXASJ INDEX)

USDCNY Relationship Diverges Significantly From Expectations