Category Archives: CBs

EU Commission- more of same

:( Latvia’s Dombrovskis Brings Fiscal Hawk Record to EU Commission By Mathew Dalton Oct 5 (WSJ) — The budget hawk who steered Latvia out of economic collapse with a bruising austerity program is poised to get one of the EU’s … Continue reading

Posted in CBs, ECB |

Mexico cuts rates

Little do they know that lowering rates removes interest income from the economy and on the supply side lowers costs and lowers forward prices, thereby reducing inflationary forces… Mexico central bank unexpectedly cuts rate to spur weak economy By Michael … Continue reading

Posted in CBs |

Professor Andrea Terzi quoted on CNBC

Well done!!!! You’d think he’d turn to Brits like Charles Goodhart who wrote volumes on it for the last 50 years! ;) How QE may be doing more harm than good By Paul Gambles May 7 (CNBC) — I’ve spent … Continue reading

Posted in CBs | Tagged |

Comments on Martin Wolf’s banking article

Strip private banks of their power to create money By: Martin Wolf The giant hole at the heart of our market economies needs to be plugged Printing counterfeit banknotes is illegal, but creating private money is not. The interdependence between … Continue reading

Posted in Banking, CBs, Currencies, Fed |

Draghi on the euro

Draghi says a stronger euro would trigger looser ECB policy (Reuters) Except by my calculations he has it backwards, as lower rates make a currency like the euro stronger, not weaker, via the interest income channels, etc. ECB President Mario … Continue reading

Posted in CBs, Currencies, ECB, Trade | Tagged |

The BoEs sharp shock to monetary illusions

The BoEs sharp shock to monetary illusions

Posted in Banking, CBs, Currencies |

The Old Lady (of Threadneedle Street) fails to get an A

The Old Lady (of Threadneedle Street) fails to get an A

Posted in Banking, CBs, Currencies |

Comments on Stanlely Fisher’s ‘Lessons from Crises, 1985-2014′

Lessons from Crises, 1985-2014 Stanley Fischer[1] It is both an honor and a pleasure to receive this years SIEPR Prize. Let me list the reasons. First, the prize, awarded for lifetime contributions to economic policy, was started by George Shultz. … Continue reading

Posted in Banking, Bonds, CBs, Credit, Currencies, Deficit, ECB, Employment, Government Spending, Housing, Interest Rates |

Turkey’s Prime Minister on rates and inflation

Turkey’s central bank prepared to tighten policy further “Mr Erdogans own resistance to interest rate rises goes deep: on the flight, the prime minister insisted that, contrary to economic theory, increases in interest rates cause inflation. I believe that inflation … Continue reading

Posted in CBs, Inflation |

Emerging Nations Save $2.9 Trillion Reserves in Rout

Smart not to intervene and use reserves. And even the 19% isn’t as much as Japan’s recent approx. 25% drop, so they all remain stronger vs the yen. So the US now loses ‘competitiveness’ vs a whole mob of exporters … Continue reading

Posted in CBs, Currencies, Employment |