Monthly Archive:: April 2012

Riksbank Says Considering Establishing Krona Bond Portfolio

Huh??? Riksbank Says Considering Establishing Krona Bond Portfolio By Jonas Bergman April 27 (Bloomberg) — Sweden’s Riksbank is considering building a portfolio of krona bonds that would help it enact crisis measures faster, officials at the bank’s monetary and financial stability departments said in a commentary. While the bank’s systems have worked ...Read More

Something to note…

Spotted by Sean Keane It was also interesting to note an easily overlooked article in Greek online newspaper Kathimerini saying that the European Commission is pressuring the European Investment Bank to withdraw a clause that it recently inserted into its new loan contracts that were signed with a number of Greek companies. ...Read More

Brussels to relax 3pc fiscal targets as revolt spreads

Yes, larger deficits are needed to support aggregate demand at desired levels. However, the problem is the national govts are currently like US states and as such are revenue constrained. So relaxing the deficit limits without some kind of ECB funding guarantees can cause markets to abstain from funding the nat govts. ...Read More

OECD Head Urges Japan To Fix Finances, Hike Consumption Tax

It’s globally unanimous. And it’s moving the euro zone closer to the waterfall. OECD Head Urges Japan To Fix Finances, Hike Consumption Tax By Kelly Olsen April 25 (Bloomberg) — The head of the Organization for Economic Cooperation and Development said Wednesday that Japan must get its fiscal house in order, and ...Read More

WRKO Radio interview this am

Warren Mosler on the Economy and the FOMC Meeting EDIT: (Warren starts at 1 minute 20 seconds) ...Read More

Mosler Leads Ferrari in BEC Donington Qualifying

Mosler Leads Ferrari in BEC Donington Qualifying By James Broomhead April 21 (Bloomberg) — In qualifying for the second race of the Britcar MSA British Endurance Championship Javier Morcillo took pole position by a little over half a second from the 45-minute session qualifying session. Morcillo and the Neil Garner Motorsport/Strata 21 ...Read More

Japan Lacking Fiscal Plan May Be Deflation Cause, Shirakawa Says

Shared delusion… Obama By Paul Panckhurst April 22 (Bloomberg) — Japan’s absence of “concrete reform plans” for the nation’s finances may be contributing to deflation and sluggish economic growth by discouraging spending by the public, central bank Governor Masaaki Shirakawa said. Consumers may be limiting spending “on concerns over future fiscal developments,” ...Read More

German Manufacturing Shrinks at Fastest Pace Since 2009

The 10th plague, as the infection spreads to the core? The surprise is that it took so long, with austerity eroding export markets. And note the drop in the employment index as well. German Manufacturing Shrinks at Fastest Pace Since 2009 By Alice Baghdjian April 23 (Reuters) — Germany’s manufacturing sector unexpectedly ...Read More

People who reject free lunches are fools: Liquidity trap – part II

Fiscal and monetary policy in a liquidity trap – part II By Martin Wolf Output is produced by work. Work is a cost, not a benefit. It is in that sense that there is no free lunch. Might fiscal expansion be a free lunch? This is the question addressed in a thought-provoking ...Read More

Fiscal and monetary policy in a liquidity trap

Not bad, but let’s take it up to the next level. Comments below: Fiscal and monetary policy in a liquidity trap By Martin Wolf With floating fx, it’s always a ‘liquidity trap’ in that adding liquidity to a system necessarily not liquidity constrained is moot. Part 1 What is the correct approach ...Read More