Economy

The June Flash PMI reports, which were out on Thursday, do not make for agreeable reading, in the sense that while the French and German economies both continued to expand during the month, their rate of expansion, and in particular in the…

I have decided to single Klaus Baader out for special treatment here because he conveniently brings together, in a clear and succinct fashion, a number of arguments which are widely accepted and used by both analysts and policy makers about…

India is still an emerging economy, one which has made great strides forward in recent years. And despite many difficulties India has remained a democracy since independence. It is a country where human rights are by and large respected,…

Here is a bit more detail courtesy of Fitch, the ratings agency, outlining exposure to the European Periphery.

For my part, I am with Richard Koo. Monetary policy reflation will not work in a balance sheet recession when fiscal policy is contractionary. But at some point, the Fed will be compelled to act anyway.

The road map for how a Danish government might be forced to issue government bonds and swap them for unsalable covered bonds in order to allow its financial institutions to abide by the Basel rules is an almost sinister way in which the…

Young people and the elderly throw incendiary devices and yogurt to protest Greece's proposed austerity measures.

The Chinese Seven Day Repo Rate has skyrocketed to a 3-year high, suggesting a cash shortage as credit tightens.

The U.S. labor market will not return to full employment (defined as a 5% unemployment rate) by following a "business as usual" course. In conjunction with reforms to the U.S. education system to ensure that the workforce has the needed…

Politically, the whole thing looks a lot like Japan. To my mind, the right approach then is to de-emphasize “increasing... borrowing and lending” and re-emphasize increasing jobs and employment. Whether we see work sharing as we see in the…