Deena Zaidi

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Deena Zaidi
About the author:

Deena Zaidi is the chief writer and owner of the economic website Financial Keyhole

Can the Fed Help the U.S. Side-step a Worldwide Economic Malaise?

Date: 15 October 2015

Markets and economists have long been obsessed with the Fed's first interest rate hike in nine years, but it seems the factors are not reciprocating positively to what the Fed is looking for. Reports on labor and emerging economies coupled with low inflation, strong dollar and falling commodity prices suggest that the US economy may not be as sound as expected.

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Major Economies' Cloudy Futures

Date: 24 September 2015

The world economy has seen many changes this year. Interestingly, in many cases theory seemed far from what happened practically in the global financial markets. While many questioned the effect China on various economies, Eurozone was going through its own tough phases with Greece in turmoil and an ongoing refugee crisis.

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BRICS Building

Date: 11 September 2015

What started, as a pompous affair of five nations coming together in support of one another’s infrastructural needs, now appears to be more of a promotional event.

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How Did Greece Get Here?

Date: 27 August 2015

Greece has been struggling hard to meet the requirements needed to be a member in the Eurozone. Moreover, following the 2008 financial crisis in the US, Greece’s economy got smaller by 25% since 2009. Germany, France, Italy and Spain are the most important economies accounting for 29 percent, 21 percent, 16 percent and 11 percent of the Union’s GDP, respectively. The current economic crisis affecting some of the Eurozone peripheral countries is raising doubts over the euro’s future and it is the major obstacle to its growth.

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Déjà vu: More Bailouts for Greece

Date: 19 August 2015

Greece’s third bailout package is on its way for delivery. The new rescue package of $95bn stands debated in the German parliament and is up for a vote before August 20. While the IMF stands aloof amongst all this upheaval, global reception to the third bailout package has not been good.  The biggest contributor to European Stability Mechanism (ESM), Germany faces many parliamentarians, who reject the idea of additional bailouts to Greece.

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The Three Rules of the Dodd-Frank Law

Date: 11 August 2015

Dodd-Frank turned five last month and once again, the debate around some of its rules sparked many discussions by politicians and economists, but less by the public. According to a poll conducted in 2015, only 4 percent were ‘very familiar’ and 30 percent were ‘somewhat familiar’ of the Dodd-Frank law. Those who were aware were asked “Thinking about financial regulation, which comes closer to your view?” The results revealed that 45 percent believed that the government had gone too far and “made it difficult for economy to grow” while 47% believed that not enough was done and there could be another financial crisis.

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The Growing Influence of China in Asia

Date: 4 August 2015

The world’s second largest economy, China made headlines when it became a part of two new banks in the Asia-Pacific region. The two new banks are a five member initiated BRICS-bank called ‘New Development Bank’ (NDB) and Beijing-led bank called ‘Asian Infrastructure Investment Bank (AIIB). A look at the purpose of these banks can make one wonder if they share a common goal – infrastructure development in Asia-Pacific region. But the structure and number of members in these two banks reflect otherwise.

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Are Globally Systemically Important Banks (G-SIBs) Still at Risk?

Date: 29 July 2015

Ever since the 2008 financial crisis, the Federal Reserve Board has been trying to regulate big banks that pose huge systemic risk to the economy. The financial crisis highlighted the fact that big banks were taking more risks for which they were not prepared.  Some banks were so big that if allowed to fail, they could have taken down the entire financial system with them. Hence bailing them out was one of the solutions to avoid the systemic risk.

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A Tale of Changing Equations: China and Russia

Date: 21 July 2015

The two emerging economies of China and Russia might be ranking differently on the global economic scale but recently it seems they have something in common: a growing interest in the Asian region. Both the countries are witnessing a downfall in their economies. China had a $3 trillion crash in the main stock market from the peak just about four weeks ago with real estate markets getting affected whereas Russia has its own worries: western sanctions over Ukraine crisis; trouble with its local currency, the rouble; its trade ban with 28-nation EU, Russia’s first trading partner and falling oil prices (oil being its main export). The two struggling nations now turn towards Asia to focus on building their own strengths in the region. Recently, there have been some significant developments in both the countries that have contributed towards Russia’s close association with China.

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The New Development Bank is a Linchpin for the BRICS' Countries

Date: 15 July 2015

Greece was the first non-member to be offered BRICS membership, even though ironically the association of the emerging economies is yet to take off. The New Development Bank (NDB) operated by the five member-countries of Brazil, Russia, India, China and South Africa (BRICS) is all set to take off with an intention to develop economic relations amongst developing countries. It is considered to be an important institution since it is the first to be created by emerging countries with the hope to finance many important projects. The BRICS bank will be financing projects by the year’s end, with special focus in the member countries. The launch of the bank was on July 7, 2015, just ahead of a summit held in Ufa, an industrial city of Russia.

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Growing Nightmare For Greece

Date: 30 June 2015

Greece is facing its nightmares: a complete shutdown for a week for its banks. What remained open were the ATMs as people rushed in to withdraw as much cash as possible. But the bigger news is around Greek referendum, which will be a decisive factor for Greece’s destiny. Greece was the first Eurozone country in need of bailouts in 2010 and the years that followed.

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The Warning Signs of Greece’s Economic Health

Date: 26 June 2015

The Greece crisis has lasted for more than five years and now the meeting with its creditors seems to be lasting for days. The country needs new bailouts in order to pay back its earlier debts. This week Greece might be reaching a decisive point: to stay in the Euro or exit. A look at its banking system highlights the troubled economy of Greece.

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The Experimental Economy of China

Date: 17 June 2015

China’s economy has always played a very unique role in challenging the global markets. China’s approach to establish two of its own banks, namely BRICS led National Development Bank and Asian Infrastructure Investment Bank (better known as AIIB) has made it evident that it wanted to rely less on the western world and wanted other Asian economies to join in. With the establishment of BRICS, China aimed to reverse the power play game of developed nations like US and Japan. However in recent news, China’s economy has been showing slowing pace. The slumping real estate markets burdened by the three rate cuts and a huge local government debt problem are a few issues that China faces. Instead of allowing its economy to weaken, the Chinese government decided to tactfully manage the evident slowdown.

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Banks' Unethical Behavior and Punishment Leads to Unethical Behavior and Punishment

Date: 22 May 2015

Large banks had long been trusted by many and their connection to many of the world’s largest financial institutions seemed to be an attraction for depositors and borrowers. This was probably one reason that the ‘too big to fail’ (TBTF) problem was born. Big banks have been subject to a lot of scrutiny after the global financial meltdown in 2008. During the crisis, banks remained huge and posed systemic risks that were large enough to take down the entire financial system and eventually the economy. This was one of the many reasons they were bailed out by the Federal Reserve during 2008 financial turmoil with an exception to Lehman Brothers. Since then, big banks have continued to function on even a larger scale than before.

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BRICS New Development Bank - does it have what it takes?

Date: 18 May 2015

The newly established BRICS New Development Bank (NDB) is going to be headed by Indian banker KV Kamath. The bank is headquartered in Shanghai and is an attempt to bring together emerging economies of Brazil, Russia, India, China and South Africa. Initially the governor of Indian central bank better known as the Reserve Bank of India, Mr. Raghuram Rajan, was in talks to head NDB. After he showed little interest, the role went to KV Kamath who will be taking over the new opportunity in the next ten days. The NDB holds its first meeting in Russia in July this year.

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The AIIB's Membership Represents a Diplomatic Victory for China

Date: 5 May 2015

With the number of founding members reaching 57, Asian Infrastructure Investment Bank (AIIB), is surely a diplomatic success for China. This is not the first bank initiated by the country. The development bank for Shanghai Cooperation Organization (SCO) groups China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan (with Azerbaijan and Armenia in talks to join) has been talk and has been in talks since 2009.

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Japan’s Revival Could Be Its Neighbors’ Worry

Date: 30 April 2015

For more than two decades, Japan has been caught up in a slow-burning crisis. Rapid aging population and low productivity have added to the declining financial health of the country. Japan’s public debt is twice the size of its annual GDP. With interest rates close to zero, the central bank of Japan had to come up with a conventional monetary policy so as to lower funding costs and spur banks to make loans. Therefore, on October 2014 Bank of Japan (BoJ) expanded its Quantitative Easing Program by buying $721 billion worth of Japanese bonds each year.

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Swiss Banking Remains a Secret, Expensive Cost

Date: 16 April 2015

Switzerland remains one of the most stable economies across the world and has not been in conflict with another country since 1505. With strong political stability and high per capita income across the world, it has also managed to keep its unemployment rate low. With Basel having headquarters of Bank of International Settlements (facilitates cooperation among the world's central banks), Switzerland is considered one of the biggest tax havens in the world.

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Greece's Latest Confounding Developments

Date: 9 April 2015

Greece’s bailout extension expires in May this year and its inclination towards the members of BRICS seems inevitable.  For long, Greece’s economy has been bringing troubling news to the Eurozone. The EU members have time and again tried their best to keep Greece in the common currency zone but bailouts and downgrading has got the worse out of Greece.

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Technological Advances are Changing the Banking Model

Date: 2 April 2015

The banking sector has witnessed many technological changes in recent years that offer more personalized services.  The shift towards getting more digital just got more exciting with the introduction of many user-friendly technologies. As banks try to make banking quicker and secure, the option for digital innovations keeps getting more and more competitive. The first quarter of 2015 introduced some very interesting banking innovations that could revolutionize the banking experience for customers. 

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