Unlikely Near-Term Yuan Devaluation

Here’s Why a Near-Term Yuan Devaluation Is Unlikely Amid rising vulnerabilities to the global economy, world financial leaders and investors fear a disorderly China’s yuan devaluation could trigger a much larger global selloff, potentially pushing the global economy back into recession. That’s a key reason why finance ministers and central bankers from the Group of 20 largest economies meeting in Shanghai this weekend want the G-20 to reiterate past vows to avoid competitive devaluation. But there are a number of good reasons to think any potential significant yuan devaluation by China wouldn’t come until…

Governments doing more and Central Banks less

G-20 wants Governments doing more and Central Banks less Finance chiefs from the world’s top economies committed their governments to doing more to boost global growth amid mounting concerns over the potency of monetary policy. In a pledge that will prove easier to write than deliver and may disappoint investors looking for a coordinated stimulus plan, the Group of 20 said “we will use fiscal policy flexibly to strengthen growth, job creation and confidence.” After a two-day meeting in Shanghai, finance ministers and central bank governors also doubled down on a line…