This Week in ESG and Impact Investing

BRICS refers to the economies of Brazil, Russia, India, China, enlarged in 2010 with addition of South Africa to the predecessor BRIC. Before the emergence of the BRICS, there were several non-aligned movements and groups formed in response to the Cold War and a desire to maintain sovereignty.  These coalitions were born out of the preference to remain independent, steering clear of aligning with major superpowers during the Cold War. These movements sought to safeguard their national interests, maintain self-determination, and forge a path distinct from the ideological struggles of the era. Here are a few examples: Non-Aligned Movement (NAM): The most prominent and well-known non-aligned group was the Non-Aligned Movement, founded in 1961. It consisted of newly independent countries from Africa, Asia, Latin America, and the Middle East. The NAM aimed to remain neutral in the Cold War conflicts and promoted peaceful coexistence, decolonization, and economic cooperation among member...

Cryptocurrencies surged in popularity recently due to their decentralized nature, transaction speed, and security. Governments around the world have taken note of this trend and are beginning to rollout nationally backed digital currencies. The first major nation to embark on this journey is China, which announced the Digital Yuan (DY). This federally controlled currency has the potential to disrupt modern financial structures and poses the largest threat to the US Dollar since the establishment of the Euro.  DY allows the Chinese government greater control over the production and circulation of currency. It also adds a means by which the Chinese government can efficiently and effectively transfer funds between citizens, banks, and government entities, all while cutting out the "middleman" in transactions.   Growing tired of a US dollar-driven world, China made a bold leap into the future, hoping to increase their global economic power. US officials have been quick to e...

On February 25th, The Becker Friedman Institute for Economics (BFI), the Chicago Economics Society (CES), and the Booth Alumni Club of Washington, DC, held a cocktails and a conversation event titled "Crony Capitalism with Chinese Characteristics." The speaker was Chang-Tai Hsieh, Phyllis and Irwin Winkelried Professor of Economics, Chicago Booth School of Business. David Rank, former Deputy Chief of Mission and Charge' d'Affaires at the U.S. Embassy in China, moderated. Professor Hsieh discussed China’s fast-paced growth over the past three decades, stating that China's economic growth has been unprecedented, defiying economic theory. One reason for this growth is the focus of the political apparatus - communist party leaders search for investments that earn high profits.  According to the professor, China has developed crony capitalism at the local level that has promoted business development. This approach relies on the fundamental depend...

The Federal Reserve’s Federal Open Market Committee (FOMC) meeting statement on March 21, indicated that the Committee voted for a quarter-point increase in federal fund rate. (See:  http://twisri.blogspot.com/2018/03/probability-of-fed-rate-hike-in-march.html ) The Fed seemed to signal, by this rate hike, that a more robust  economic outlook, strengthened, at least in part, due to fiscal policy (tax bill), provides a solid base on which to tighten (increase interest rates) monetary policy more aggressively in the future. The FOMC also sought to cling to a strategy in 2018 , according to the statement , that “ supports strong labor market conditions and a sustained return to 2% inflation .” Top  FOMC  considerations : Inflation targets and the labor market This cautious stance diverged from market expectation in a surprising way: the market seemed to expect more . The accommodative monetary policy ...