In a post-mortem on Beepi, Carlypso founder Chris Coleman suggests that in addition to the noted reasons (depreciation effects, and cognitive pricing differential), the approach was inherently flawed from a customer acquisition perspective.
In a post-mortem on Beepi, Carlypso founder Chris Coleman suggests that in addition to the noted reasons (depreciation effects, and cognitive pricing differential), the approach was inherently flawed from a customer acquisition perspective.
Krugman's controversial claim is that, even if this were to happen, interest rates would not rise, while the depreciation's effect on the US economy would be expansionary (via an increase in net exports).
THERE'S an interesting News analysis piece up, covering the topic of dollar depreciation and its effect on other currencies.
Governments or central bankers worried about depreciation or its effect on inflation will be tempted to move monetary policy in an inappropriately tight direction.
"While bonus depreciation had measurable effects on the labor market, our results suggest that tax cuts to corporations are not the most cost-effective forms of stimulus," the authors write.
Adam Posen, of the Peterson Institute of International Economics in Washington, says China's motivation may only become clear over time, but markets will be asking themselves "is depreciation a side-effect of liberalisation or is liberalisation cover for devaluation?" But whatever the reasons behind it, Beijing's economic gear shift will have far-reaching effects.
The profound effect of depreciation on exports and on GDP can provoke currency wars and harsh words among central bankers.
A less well-known tax effect – accelerated depreciation for leased systems – transfers another 15%-20%-20%the cost from the end-user to the federal government.
The 25percentnt immediate depreciation also is in effect in Greenwich, where between 75 and 100 pools have been built each year since 1967.
