Christian Broda’s Inside Eye Into The Economic World
The current MD at Duquesne Capital Management Christian Broda on valuewalk is a renowned economist having previously served as an Economics Professor at the Chicago University. He has a number of publications in the form of articles and books concerning world economics, trade and finance. Broda earned his economics degree from Universidad de San Andres, Argentina. He later pursued his Master and Ph.D. at MIT.
Broda’s publications are usually of very high significance. In “The Economic Stimulus Payment of 2008 and the Aggregate Demand for Consumption”, Broda talks about the response witnessed by households as a result of the payments and measures the partial increase in equilibrium in the demand for the consumers’ goods and services. He holds the belief that the American Dollar will remain dominant in terms of its status as the global currency of choice. Following the financial crisis of 2008, as other upcoming markets feel the effect, the dollar grows in strength. However, many economic analysts are of the opinion that with the growing government debts, the value of the dollar could be heading for a downward spiral. According to economist James Rickards, the coming financial collapse has not been witnessed before. With the international financial system having plummeted thrice in the past century in 1914, 1939 and 1971, he gives note to the fact that each of these collapses was followed by a tumultuous period like civil uprisings, war and instability in the state of the global economy. This view is shared by many others.
In recent years, calls have been made to replace the dollar with another global currency most notably by the former World Bank chief economist Justin Yifu Lin who is now a financial advisor to the Chinese Government and a professor at the Peking University. The idea of embracing the use of a number of currencies including the Yen, Sterling Pound, the Dollar and the Euro was rejected by Eswar Prasad and Broda alike. Broda advocates for investors to remain in investments dependent on the dollar advising investors to reconsider about channeling their funds in emerging markets.No single currency has dominated the world’s financial scene forever with dominance swaying from Britain, France, Spain and Portugal back in the 15th Century.
Broda is a successful hedge fund manager in his own right. He recently shared advice on how to establish a functional and reputable hedge fund. The beauty of hedge funds is that they involve little financial risk on one’s part. They do however involve a lot of effort. He broke down the start-up process into a number of steps. First up is forming a team that will be responsible for the running of the enterprise, this includes traders, analysts and a Chief financial advisor. Secondly, one needs to hire a law firm to deal with the legal proceedings involved on his behalf. Next is finding investors, hiring a stock agency through which one will make all his trades and finally setting up professional work premises. This makes it easier to attract investors.