So what is fuelling the equity rally? http://t.co/Gu1LJauXzx
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Global Macro Channel: Latest Posts
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Global Macro
Has House Price Deflation Begun in Canada?
Yesterday, the Teranet-National Bank National Composite House Price Index for Canada was released. It showed that 12-month home price inflation in Canada was down to 2.0%, the lowest level since November 2009. And given the huge amount of talk in Canada about a potential housing bubble, there is a worry that this is the beginning of a housing bust. You [...]
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Great Leap Forward
Hyman Minsky and the Employer of Last Resort
A couple of weeks ago, I mentioned Hyman Minsky’s new book, “Ending Poverty: Jobs, Not Welfare”, less than $14 at Amazon. There is also a Kindle version. Take a look at the cover: MinskyFullCover3-14 – Minsky looking like a bit of a rougue! Here’s a link to Amazon (cut and paste if it doesn’t work):http://www.amazon.com/Ending-Poverty-Jobs-Not-Welfare/dp/1936192314/ref=sr_1_2?s=books&ie=UTF8&qid=1364998534&sr=1-2 I thought you [...]
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Global Macro
Doing Business at the World Bank
A showdown is looming at the World Bank over whether to discontinue or water down the Bank’s annual “Doing Business” Report. As reported here, and blogged about here, and here, China is leading the charge against the report, which is one of the Bank’s most controversial and influential projects. The U.S. government has been lobbying in favor of Doing Business, but so far [...]
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Global Macro
There are No Currency Wars! We Are Just Devaluing
(With apologies to The Weather Girls), it’s now raining men Yen! Japan has opened a new front in the “currency wars”, a term coined by Brazilian Finance Minister Guido Mantega in 2010. The US, UK and Switzerland are already enjoined, with Europe likely to take up arms shortly. Nations which constitute around 70% of world output are “at war”, pursuing [...]
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Global Macro
Current Monetary and Fiscal Policies Need to Be Replaced
Reports of the important recent IMF conference ‘Rethinking Macro Policy II: First Steps and Early Lessons’ suggest that it was refreshing and informative. What appears (from the reports) to have been largely overlooked at the conference, however, was a rethinking of the interrelationships and scope for improved coordination between monetary and fiscal policy. From a [...]
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Global Macro
Banking on Reform: Can Volcker, Vickers and Liikanen Resolve the Too-Important-to-Fail Conundrum?
The global regulatory landscape governing banks has changed from its pre-crisis status quo. In addition to the Group of Twenty advanced and emerging economies led global regulatory reforms, like Basel III, the United States and the United Kingdom have decided to directly impose limits on the scope of banks’ businesses. The European Union is contemplating [...]
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Global Macro
Macro Overview
The US dollar is consolidating the gains seen at the end of last week. The greenback briefly pushed through the JPY102 level in Tokyo, but this was not sustained. Meanwhile, the global equities are mostly lower, though the Nikkei tacked on another 1.2% to reach a new 5.5 year high. Softer Chinese data may have [...]
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Great Leap Forward
A New Meme For Money: the EEA presentation
Hi, I’ll make a presentation tomorrow; here’s a sneak peek. Pavlina Tcherneva has organized back-to-back presentations for the morning; the first is on fiscal policy and the second is on monetary policy. Here are the line-ups: SESSION 1: Park 5; Saturday, May 11, 9:30-10:50 Fiscal Policy after the Crisis Session Organizer & Chair: Pavlina R. [...]
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Global Macro
Marrying Monetary Policy and Financial Regulation
If the global financial crisis — and the events that led up to it — have taught us anything, it is,“No complacency with asset price booms”. We know first hand the dire consequences of bubbles, so it is clear monetary policy makers can no longer passively observe the evolution of asset prices. If an economy [...]
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Global Macro
Great Graphic: Base Money and Money Supply
Many observers continue to confuse base money with money supply. The Pragmatic Capitalism blog has been among the forefront explaining this distinction. The first Great Graphic here comes from a post on that blog fromNiels Jensen of Absolute Return Partners. It shows the monetary base, which is what the central banks create when they purchase securities from dealers. This [...]
