Economic Data

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,…

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

Executive pay has skyrocketed. Meanwhile, the real average hourly wage peaked in 1973. It declined precipitously until the mid-1990s before rising somewhat. The increase in labour participation rates due to the addition of women in the paid…

Stephanie Kelton demonstrates that as long as unemployment remains high, the deficit will remain high. Here’s the formula: Spending creates income. Income creates sales. Sales create jobs. If you think you can cut the deficit without…

This is in line with the weak data we have seen out of the US in recent weeks. I expect Q2 growth estimates to continue to decline as the data come in.

The last time the curve was this flat was during the panic in 2008. So I am still concerned that the potential for a more abrupt slowing exists. So far growth remains robust.

If the US wants job growth, it will need to reduce private sector debt levels - and that takes time. The government can act a a counterweight to the demand drag but I am very sceptical of claims like Summers’ that doing so would solve a…