News: 2013-11-14

By Edward Harrison On Nov 14, 2013

Markets

Gold demand falls to four-year low – FT.com

Monetary Policy

Unconventional monetary policy: Quantitative easing, not as we know it | The Economist

Unconventional monetary policy: Don’t shoot the messenger | The Economist

It’s hard to talk about this without reading the actual report but the stated goal of QE is clearly to influence the private portfolio preference channel by reducing risk premia and creating a risk-on investing environment. This is an indirect channel of transmission from interest rates and investment allocation to asset price increases. So I am sceptical that a study can capture its effect. Ganon even notes this at the end in his second asterisk.

Speech: Monetary Policy and the Economic Outlook – Federal Reserve Bank of Atlanta

“Going forward, it may be appropriate to adjust the policy tool mix. That will depend on circumstances and the economic diagnosis of the moment.”

Missing Piece in the Communication Strategy – Tim Duy’s Fed Watch

“The Fed is clearly signalling they want to change the policy mix. They are not clearly signalling why.”

Macro and Other Market Musings: If You are Going to Criticize QE…

Central Banks Risk Asset Bubbles in Battle With Deflation Danger – Bloomberg

ECB’s Praet: Negative Deposit Rate, Asset Purchases Are Options – WSJ.com

Germany’s Weidmann Defends ECB Against Charges It’s Hurting Savers – Real Time Economics – WSJ

Europe

BBC News – Eurozone economic growth slows to 0.1%

BBC News – Portugal struggles under weight of austerity

With France stalling, euro zone recovery comes to near halt | Reuters

French Economy Shrinks as Businesses Hold Off on Investment – Bloomberg

UK retail sales fall ends run of strong high street data | Business | theguardian.com

Deflation fears stalk eurozone as Spain reports fall in prices | Business | The Guardian

Statement by the Taoiseach to Dail Éireann on Exiting the EU-IMF Bailout Programme « MerrionStreet.ie Irish Government News Service

Ireland to exit the EU/IMF Programme on 15th December as planned and without further supports – Department of Finance – Government of Ireland

ekathimerini.com | Poll gives SYRIZA narrow lead over New Democracy

ekathimerini.com | Dijsselbloem: Greece must step up effort to find 2014 budget gap financing

ekathimerini.com | Greek unemployment rate at 27.3 percent in August

Le Pen and Wilders forge plan to ‘wreck’ EU from within | Politics | The Guardian

European Commission launches review of Germany’s export surplus | World news | The Guardian

Lasst uns den Exportüberschuss doch Importdefizit nennen

Here Dirk Elsner tries to impress on German readers that a current account surplus is not necessarily a good thing and he points out that an export surplus equals an import deficit and that it means exporting capital and not importing it.

Wie Deutschland seinen Exportüberschuss reduzieren könnte – SPIEGEL ONLINE

Three ways to get rid of excessive surplus: raise wages, raise taxes or increase capital investment

Exportdebatte : Daran krankt unsere Wirtschaft wirklich – Nachrichten Wirtschaft – DIE WELT

This German article shows an average current account surplus in order to make the Netherlands look like a bigger problem than Germany. That’s one way this EU Macroeconomic Imbalance Procedure is going to be dealt with in the German media.

Steuererhöhungen : Frankreich steht vor der sozialen Explosion – Nachrichten Wirtschaft – DIE WELT

This German article says that Hollande’s tax increases in France are going to cause a epic social backlash

Why Draghi was wrong to cut interest rates – FT.com

Hans-Werner Sinn stiring up trouble… again.

News: 2013-11-14

Markets

Monetary Policy

Europe

United States

Obamacare

Asia

Technology