Expected Losses are Not Baked into the Risk Weights
byBy Tim Bush and Kevin Dowd On December 15th 2015 there was an interesting exchange on the Treasury Committee between Steve Baker MP…
Economics
Jeffrey P. Snider: Unfortunately An ‘Official’ End To The Rising Dollar Isn’t More
byTIC data confirms that “reflation” captured more than just pricing sentiment. It appears to have occurred in bank balance sheet activity, and related official…
The ‘Free Market Multiplier Effect’
byOne of the basic concepts taught in first-year university economics classes around the world is the intuitively powerful though regularly abused ‘multiplier effect’. The…
Trumped or Stumped? The tax cut, the debt ceiling and riding the gravy train
byA corporate tax cut from 35% to 15% will cost US$200bln/annum A Border Adjustment Tax could raise US$100bln/annum The boost to GDP growth is…
How magical is the Keynesian multiplier?
byFor most economists and financial commentators the heart of economic growth is the increase in the demand for goods and services. The view is…
Breaking the chain
by“Wherever there’s injustice, oppression and suffering, America will show up six months late and bomb the country next to where it’s happening.” From Give…
Business cycles are credit cycles
byThis article gets to the heart of why central banks’ monetary policy will never succeed. The fundamental error is to regard economic cycles as…
Does the price of oil determine general increases in the prices of goods and services?
byA very good visual correlation between the yearly percentage change in the consumer price index (CPI) and the yearly percentage change in the price…
Benn Steil: PBoC Spins China’s Bad-Loan Data
byIn a recent speech at Bloomberg’s headquarters in New York, People’s Bank of China Deputy Governor Yi Gang reassured his audience on the level…
The Moral Foundations of the Free Market Society
byHigher education in the United States is engulfed in an ideological campaign against the American political and economic traditions of individual liberty, free competitive…