Mish Shedlock: In Search of Elephant in Room, Fed Governors Come Up Empty
byFed Governor Jerome Powell says “Signs of excesses are ‘isolated’. Asset Prices ‘not broadly unsustainable’“. The Federal Reserve does not see “broadly unsustainable asset…
Economics
Bawerk.net: Chinese Philosopher Kings, Losing their Yuan FX Religion?
byIt took a while, but the world are slowly coming to grips with the simple fact that the red-suzerains in Beijing are not the…
Why the free market is the best defence against the money multiplier
bySome commentators are of the view that the present monetary framework is instrumental for the emergence of the so-called money multiplier. Consider the case…
Jeffrey P. Snider: One Small (But Important) View of ‘Dollars’ From Europe
bySource: http://www.alhambrapartners.com/2017/01/03/one-small-but-important-view-of-dollars-from-europe/ Nothing says “fixed” quite like bureaucrats responding to a past crisis they did not foresee (and in the case of European bureaucrats, actively…
Bawerk.net: How to Invest in the New World Order
byIn our latest Toward a New World Order, Part III we ended by promising to look closer at investment implications from the political and…
Talking about ‘Sticky Prices’ and Monetary Policy
byThe phenomena of ‘Sticky Prices’ (known also as ‘nominal rigidity’, ‘wage-stickiness’ and ‘price-stickiness’) is important in Keynesian thought and macroeconomic thought more broadly. Prices…
The Eventual Impact of Rising Bond Yields. Further Cracks Appearing in the ‘Global Consensus’ of Bank Supervision.
byCentral Banking Global Bond Market Yields are Rising The ECB’s recently announced 6 month extension of its QE programme reminds us that the speed…
Benn Steil: Is the Emerging Market Currency Plunge Really About Trade?
byEmerging market (EM) assets have taken a beating since Donald Trump’s surprise election victory on November 8. EM bond prices are down 4.4 percent,…
Unemployment and inflation: is there any relation?
byA fall in the US unemployment rate to 4.6% in November from 4.9% in the month before and 5% in November last year has…
Benn Steil: China’s Bond Market Can’t Handle a Global RMB
byThe Chinese RMB’s ascension into the IMF’s SDR currency basket in October has been widely seen as an important first step on its path to becoming…