Tag Archives: Young creditor nation

The former chief editor of “The Economist” Geoffrey Crowther published a great work on the development of balance of payments and current accounts over the long-term. It divides development into six phases, which are analogous to Shakespeare’s seven phases of life.The seven stages are: Young debtor nation, Mature debtor nation, Debt repayment nation, Young creditor nation, Mature creditor nation, Credit disposition /Asset Liquidation nation and the back to start stage Read our discussion...

We call this chapter the holy grail of long-term currency movements because it is able to explain things like the sudden depreciation of the yen between October 2012 and April 2013 or the strengthening of the Chinese Yuan. The former chief editor of “The Economist” Geoffrey Crowther published a great work on the development of balance of payments and current accounts over the long-term. It divides development into six phases, which are analogous to  Shakespeare’s seven phases of life. via...