Economy

Banks pay next to nothing on deposits while charging a rate that is often linked to treasuries on the loans they make. The steeper the curve, the wider the "margin". And given the leverage inherent in the banking system, even a small margin…

The US November jobs data are generally stronger than expected. The closure of the government and the re-opening suggests a two month average offers a more accurate read, which as we noted, is fairly steady job growth in the US. There are…

Given its importance, here are some facts about the interbank lending market in the US.

European banks continue to be engaged in deleveraging. It is partly driven by new capital requirements and partly by preparing for the next year's ECB's asset quality review and stress test. The deleveraging process includes reducing…

So much has been written about the endogeneity of money that I thought it was now widely accepted. But recent exchanges have shown me that people STILL aren't getting it. Most recently, there have been two themes doing the rounds that…

A number of indicators seem to point to a relatively weak holiday shopping season in the US. In particular, the Gallup survey index that estimates holiday spending has turned lower. And consumer sentiment peaked this summer and has been…

Below is a speech by Philadelphia Federal Reserve President Charles Plosser recommended a more circumscribed role for the Fed.

The most recent economic data have been a bit soft. Below I take a brief look at what the data flow seems to be saying

Given the relatively low default rates in auto loans, banks' credit departments have loosened lending requirements.

Private and public debt in the Eurozone increased since the 2000s, and especially so in certain countries. This column presents evidence that high levels of private and public debt, together with deleveraging of all sectors, are especially…