Category Archives: Macro

U.S. infrastructure. It’s time to do something about it.

Anyone who has some international travel experience knows that airports provide visitors with the first impression of a host country, and first impressions matter.

I must have travelled to the U.S. about 10 times, but I still remember vividly the first time I flew over to New York JFK. When I got there, I was welcomed by a sense of chaos, queues, and of a place that felt generally “old”, as did the rest of the United States infrastructure. Airport runways, roads, railways were and still are far below the standards expected from a country that’s seen by many as the centre for innovation, where stuff gets “done” and when, if something does not work, it gets fixed.

The discussion about the States’ crumbling roads and bridges and inadequate airports and railways is not new, but little has been done by a stalling Congress to address the issues, as the ballooning deficit eats into the funds required to maintain, let alone improve the existing network.
It is no surprise, therefore, that the latest Report Card for America’s Infrastructure, issued by the American Society of Civil Engineers every 4 years, gives the US a disappointing D+.

Source: Financial Times; ASCE

Source: Financial Times; ASCE

The issues that need to be solved are several Continue reading

Take it easy, Janet!

This week’s FOMC meeting got quite a few observers worried that the market might be pricing in too benign a path for US rates when compared to the median forecasts for Fed Funds issued by the Committee for the next two years.

Market Pricing vs. Fed Forecasts - IIF

As markets start getting a little jittery, three themes in particular have caught my attention, amidst the ton of material that has been published over the last few days. Here’s an overview, with links to all relevant references. And no, I won’t mention Scotland…  Continue reading

Should the next Google be based in Bangalore?

This week’s meeting between the Chinese premiere Xi Jinping and his Indian counterpart, Narendra Modi provides the perfect backdrop to kick off MacroCentral.com. We take a look at India in particular, with a brief analysis of the successes achieved to date on the economic front by the government and the RBI, as well as as the economic challenges that the country faces going forward.

The two heads of state, who represent a grand total of more than 2.5bio people, surely have had a lot to discuss, as they need to balance their diplomatic issues with their economic interests. India is seen by many as a China-in-the-making, with the former lagging the latter by about 10years. The WSJ ran a great comparison between the two economies recently, showing how the two countries look alike.

Continue reading