Can easy monetary policies help to absorb idle resources?
byIt is widely believed that resources that are utilized in normal times to promote economic prosperity become underutilized during recessions. Some experts hold…
Economics
Leveraged Loans – History Rhyming?
byDespite three Federal Reserve rate cuts, leveraged loan credit quality is rapidly declining Covenant-lite issues now account for more than 80% of US$…
The Japanization of the European Union
byThe Japanization of the European Union[1] Introduction The topic of my lecture today is “The Japanization of the European Union.” I…
Targeting nGDP Targeting
byNot too long ago, we wrote about the so called Modern Monetary so called Theory (MMT). It is not modern, and it is not…
150 years of bank credit expansion is near its end
byThe legal formalisation of the creation of bank credit commenced with England’s 1844 Bank Charter Act. It has led to a regular cycle of…
The Perversity of Negative Interest
byToday, we want to say two things about negative interest rates. The first is really simple. Anyone who believes in a theory of interest…
Are we heading for a liquidity trap?
byWith interest rates in many countries close to zero or even negative some commentators are of the view that monetary policy of the…
It’s Coming Home this November! Event in Austrian central bank in Vienna
byThis will be a good one. See more here: http://austrianconference.org/
FinTech Companies; little innovation and no reform of banking
byNew entrants into every aspect of banking were encouraged by two recent regulatory developments: the Open Banking initiative and the ‘sandboxing’ exemptions from regulations….
From Zero Hedge ::: Lagarde – “We Should Be Happier To Have A Job Than To Have Savings”
byAny hopes that the replacement of Mario Draghi, who on Halloween left the ECB more polarized than ever, as the core European nations revolted…