Economy

By Frances Coppola In my post on the anatomy of a bank run, I suggested that the rule should be "provide central bank liquidity support to everything, taxpayer support to nothing". This is because in a bank run/liquidity crisis, it isn't…

By Sober Look Here is a quick update on India's ongoing financial stress. Capital outflows from stocks over the past couple of months reached a post-2008 high, prompting Goldman to downgrade the nation's equity market. Bloomberg: -…

In my last post, I argued that enforced separation of investment banking and commercial banking would not eliminate the need to provide central bank support to investment banks and other non-banks in the event of another Lehman-type…

The widely followed Markit PMI report of China's manufacturing for July was disappointing, coming in at an 11 months low.

The following are today's prepared remarks of the Semiannual Monetary Policy Report to the US Congress by US Federal Reserve Chairman Ben S. Bernanke. While the totality of Chairman Bernanke's remarks are not new, we have underlined and…

The contrast between the US and European auto markets is stark and captures the significant divergence of the two economies. June auto sales in Europe slumped from a year ago to their lowest level since 1996. In June, US auto sales reached…

Glass-Steagall is dead. Rather like Soviet-era Communist leaders, it has been officially dead since 1999, and actually dead for much longer. Though there was no state funeral, the body was not embalmed or put on display and few people…

The Eurozone's banks are continuing to deleverage, with total loan balances to euro area residents now at the lowest level in 5 years. What makes the situation even more troubling is that many Eurozone banks banks are repeating the Japanese…

For India, oil prices currently stand at recent record highs (except possibly the oil India buys from Iran at a discount). Given that domestic petroleum is generally subsidized by the government, this spike is sure to put significant…

In the past two weeks, a lot has happened in Europe. I would say the general tenor of the news flow has been downbeat. Nevertheless, I am mostly positive on Europe. I don't see an imminent eurozone breakup, nor do I see a further dip into…