Economy

On balance it would then seem that the consensus remains weighed towards no QE3 either because it is not needed or because it does not work in the first place. I think it is very simple in the end though. If sideways movement gives way to a…

Jeffrey Gundlach spoke with Joe Weisenthal of Business Insider in an exclusive interview which they recently carried on their site. Gundlach believes that the economy is “a low-performance mode” that makes the unemployment overhang…

In the US, you have a weakening recovery, uneven job growth, less accommodative monetary policy, tightening fiscal policy at the federal and local levels, austerity in Europe and tightening in emerging markets coupled with secularly high…

In a recent column at VoxEU , Hans Werner Sinn of the prestigious Institute for Economic Research claims that the German Bundesbank is effectively propping up banks across the Eurozone’s periphery. He adds that doing this risks a major…

I am concerned that the emerging markets have overheated and are now reversing direction quickly. Policy rates are still low when adjusted for inflation. But, given the economic weakness now manifest across North America and Europe, the…

I mean to ask how deep the downturn in your country was. On Tuesday, Martin Wolf had a good graphic on this. The upshot of his analysis is that while US GDP growth compares favourably to Japan and Western Europe, its unemployment compares…

Inflation is sapping spending power. Legitimately, one cannot expect pay to rise by 4 and 5% per annum in a still weak economic environment. Therefore, the only way to see more purchasing power for consumers over the medium-term is via…

This chart is for year over year ‘real’ GDP growth. Note the recurring first quarter spikes followed by dips, presumably due to front loading annual state spending and lending.

Do yourself a favor and pick up a copy of The Good Soldiers today. As I can’t know where you stand on these wars, I can’t say whether or not reading the book will change your mind. But I can guarantee you that its on-the-ground perspective…

There’s been a lot of talk since America’s dismal employment situation summary was released on Friday about why Germany has done so well during the global economic recovery. Here’s David Leonhardt of the NY Times: The brief story…