Paul Cavey, previously Asia macro strategist and managing director at investment company Wellington Management, is the founder of research service East Asia Econ.
According to conventional wisdom, rising U.S. rates and a strong U.S. dollar have been preventing the monetary policy loosening desperately needed for China’s deflating economy. Events over the last couple of weeks seem to bear this out, as the U.S. Federal Reserve finally started to cut rates and the People’s Bank of China quickly followed suit and China’s equity markets soared.
