Monetary Policy Appears Close to Its Limits, Says Wilson

The transcript discusses the US economy's solid performance, with unemployment at 5% and gradual wage pressures. It predicts interest rate hikes in 2017, considering the strong dollar and financial conditions. The neutral rate is debated, with expectations of growth due to population and productivity increases. China's economic situation, including capital outflows and currency depreciation, is analyzed, with a focus on policy adjustments and growth stability. Concerns about China's credit-driven growth and potential future issues are highlighted.

What is one reason for the desire to raise interest rates in the U.S.?

• To increase exports

• To stimulate economic growth

• To counteract inflation

• To decrease unemployment

What is the market's outlook on the number of rate hikes in 2017?

• No hikes

• One hike

• Three hikes

• Two hikes

How has the U.S. dollar's strength affected financial conditions?

• It has strengthened financial conditions

• It has led to increased inflation

• It has weakened financial conditions

• It has had no impact

What approach have Chinese authorities taken towards their currency?

• Basket approach

• Fixed exchange rate

• Gold standard

• Floating exchange rate

What is a potential long-term concern for China's economy?

• High unemployment

• Trade surplus

• Credit-driven growth

• Low inflation