Mizuho Bank's Varathan on Dollar, EM

The video discusses the strong outlook for the dollar in early 2022, driven by the Fed's hawkish stance compared to the ECB and PBOC. It highlights the economic impact of the Omicron variant and inflation, particularly on emerging markets. The analysis extends to Chinese currency dynamics, emphasizing inflation differentials and stability. The video concludes with potential policy mistakes by central banks and their global risks, especially concerning economic and currency stability.

In what ways could fiscal strains affect consumer spending?

What is the significance of inflation differentials between the US and China?