Bank of Japan supplies funds after bonds plunge; BoJ to meet w/ market participants May 29 to smooth out volatility http://t.co/45Mj2B1Gj0
about 1 hour ago
Global Macro Channel: Latest Posts
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Great Leap Forward
Hyman Minsky’s New Book on Ending Poverty: Jobs, Not Welfare
OK, after my last post, we need an optimistic note. As you know, MMTers have adopted the “employer of last resort” or “job guarantee” approach to ending unemployment. Many of us got this policy from the late Hyman Minsky, who is well-known for his “financial instability hypothesis.” However, in the 1960s and 1970s he wrote [...]
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Policies of Scale: Efficient Global Policy
Quick Pitch: More Big Data Analysis for Energy
This piece was originally published on the Passions blog of my employer, Praescient Analytics: http://www.praescientanalytics.com/passion.php Projections for global energy demand show massive growth over the next thirty-plus years. The US Energy Information Administration’s International Energy Outlook (2011), for example, suggests that global consumption will grow by 53% from 2008 to 2035. A number of factors [...]
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Nouriel Roubini's Global EconoMonitor
The Global Economy on the Fly
In the last four weeks, I have traveled to Sofia, Kuala Lumpur, Dubai, London, Milan, Frankfurt, Berlin, Paris, Beijing, Tokyo, Istanbul, and throughout the United States. As a result, the myriad challenges facing the global economy were never far away. In Europe, the tail risk of a eurozone break-up and a loss of market [...]
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Global Macro
Latest Central Bank Reserve Data
At the end of last week, the IMF reported the latest reserve figures for Q4 2012. Overall currency reserves stood at $10.9 trillion at the end of last year, up $734.5 bln over the course of the year. Most central banks provide the currency allocation of their reserves. There are two notable exceptions: China, which regards [...]
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Global Macro
Doubles or Triples All Round?
Today’s second revision to gross domestic product in the final quarter of 2012 left the quarterly change unchanged at a fall of 0.3%. Consumer spending was revised up, to show an increase of 0.4%, from 0.2%, but overall investment fell by 0.2% and the deficit on net trade rose to £6 billion, from £5.3 billion [...]
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Global Macro
Gee Whiz, Incentives Matter
Back in the heady days of the financial crisis, I used to recommend Planet Money as a good way for non-specialists to learn about some of the basic economic and financial issues involved. Over the years, I’ve become less thrilled with the show, for reasons that will become obvious below. In particular, whenever Ira Glass dedicates a full This [...]
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Geostrategy
Trade: The World Is Not Flat Yet
Thomas Friedman’s bestseller The World Is Flat highlights the strong forces pushing the world towards a single economic platform. The technology-fueled globalization in the provision of services, and the widespread organization of production processes as global value chains are part of his narrative. The revolutionary potential of services comes out neatly from the persuasive story [...]
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Global Macro
Imperative of Heterodoxy
Gone forever are the days when sitting in his office, a great scholar could create a new theory, which revolutionize thinking about economy. It was possible in the eighteenth and nineteenth century, maybe for the last time in the twentieth century, in the time of Keynes, but it is no longer viable in the twenty-first [...]
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Europe
Cyprus: What’s Next?
It now appears that the Cypriot Parliament will reject the government’s amended plan for haircutting deposits. The revised proposal, which reportedly exempted depositors under €20,ooo, satisfies almost no one – Cypriot depositors, the Russians, nor European creditors (including their increasingly agitated banking regulators). The government looks ready to try and renegotiate the bailout, but no [...]
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Global Macro
The World Has Changed, the International Monetary System Needs Some Serious Re-Thinking
The international monetary system (IMS) is neither preventing currency volatility … On paper, the IMS has to guarantee – with its institutions, policies and conventions – the orderly functioning of transnational financial flows and exchange-rate regimes. Over the past few years, however, most currencies’ exchange-rates fluctuated at an unprecedented pace, hampering capital transfers and commercial [...]
