Central Banks Put a Safety Net Under Financial Markets
byMost early business cycle indicators suggest that the global economy is pretty much roaring ahead. Production and employment are rising. Firms keep investing and…
Economics
Artificial intelligence
by“Sir, I think that I have at long last identified why the National Health Service is experiencing high levels of patient pressure, especially…
Money and the stock market: is there any relation?
byIs it true that changes in money supply are an important driving force behind changes in the stock price indexes? Intuitively it makes sense…
The risk of a correction in the equity bull market
byRising commodity prices, including oil, are feeding through to PPI Unemployment data suggests wages may begin to rise faster Federal Reserve tightening will continue,…
Is the fall in prices bad news?
byContrary to the popular way of thinking, we suggest that there is nothing wrong with declining prices. What signifies industrial market economy under a…
Capitalism and How Expectations Coordinate Markets
byOpen, competitive markets have a resilient capacity to successfully coordinate the actions of, now, billions of people around the world. With an amazing adaptability…
Jeffrey P. Snider: Good or Bad, But Surely Not Transitory
byby Jeffrey P. Snider When Federal Reserve officials first started last year to mention wireless network data plans as a possible explanation for a…
Are inflationary expectations the heart of inflation?
byFor most economic commentators the underlying driving force of inflation is inflationary expectations[1]. For instance, if there is a sharp increase in the price…
The Swiss Franc and The Euro: What Now?
byBy Mihai Macovei In January 2015, the Swiss National Bank (SNB) unexpectedly removed the de facto peg of the franc to the euro.1 The move was welcomed by…
Our Outlook for 2018 Interest Rates To Stay Low. The Consensus View is that Europe’s Banks are Recovering but we are Not So Sure.
byby Gordon Kerr, Kevin Dowd and Cavin O’Driscoll, with Enrico Colombatto The Interest Rate Outlook Despite their shortcomings, European banks do not seem on…