Chinese premier criticizes EU move on trade measures http://t.co/W34ULOBwyy
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Archive for October, 2011
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The Euro Area Precedent for Policy Failure
Last weekend, a leaked Troika report (Troika = ECB + EC + IMF) revealed that European policy makers now comprehend that the Greek policy prescription is not working (bold by yours truly): The growth and fiscal policy adjustments assumed under the program individually have precedent in other countries’ experience, but experience to date under the program suggests that [...]
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This Is What You Get When Policy Makers Become Complacent
The prospects for domestic demand in the US are not bright. The labor market barely generates jobs and fiscal policy is a drag. Americans are consuming; but there’s unlikely sufficient nominal income growth to stabilize consumption expenditure growth at current levels. We’ve seen years where consumption growth outpaced income growth; but those periods of consumption were financed [...]
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Don’t Hold Out for a Lasting German Economic Rebound
German industry is plugging away. Ending in August, the 3-month average of the seasonally- and calendar-day adjusted volume of industrial production (excluding construction) maintained a quick 8.3% annualized pace. Even if this core measure of industrial activity falls another 1% in September, the Q3 quarterly annualized pace would be 10.5% - a robust acceleration from Q2 (6.3%). [...]
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Expect Neither ‘Sustainable’ nor ‘Comprehensive’ From Euro Area Leaders
On Sunday, Merkel and Sarkozy promised a “sustainable and comprehensive” solution to the euro debt crisis ahead of the November 3-4 G20 meeting. Along with this rather grand announcement are absolutely no details on their plan. However, Van Rompuy today pushed back the European Summit, which convenes now on October 23, to ‘finalise our comprehensive [...]
