CBs Archive

Comments on crude pricing, the economy, and the banking system

Crude pricing The Saudis are the ‘supplier of last resort’/swing producer. Every day the world buys all the crude the other producers sell to the highest bidder and then go to the Saudis for the last 9-10 million barrels that are getting consumed. They either pay the Saudis price or shut the ...Read More

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 top economic-policy jobs as Europe is heading toward a clash over austerity. ...Read More

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 O’Boyle and Alexandra Alper June 6 (Reuters) — Mexico’s central bank unexpectedly ...Read More

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 the last few weeks talking almost entirely about the Bank of England’s ...Read More

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 the state and the businesses that can do this is the source ...Read More

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 Draghi said that euro appreciation over the last year was an important ...Read More

The BoEs sharp shock to monetary illusions

The BoEs sharp shock to monetary illusions ...Read More

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

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

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. I got my start in serious policy work in 1984-85, as a ...Read More

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 and interest rates are not inversely proportional but in direct proportion, he ...Read More