fiscal

Abenomics has been very successful in goosing the Japanese economy thus far. However, the question remains whether this success will be short-lived or durable. I believe it is likely to be short-lived because of the policy constraints that…

Yet again, the U.S. debt ceiling is going to become a political football that could threaten the U.S. and global economy. While I don't think the U.S. will default on its debt these recurring manufactured crises make the U.S. extremely…

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…

Interest rates will stay low for a long time - long as in years, not months. In the UK there is a risk that a weakening currency may lead to some modest increase in inflation but, generally speaking, inflation is not a problem, and all…

In the links today, the biggest threads outside of the NSA scandal were on Greece and Europe. I believe the economy there is bottoming and I want to discuss some of the news flow. There was also a rate decision by the Japanese central bank…

Daily comments on finance, economic and market news for 6 Jun 2013

This is an article that originally ran early this month at VoxEU by the Chief Economist of the International Monetary Fund and one of his researchers that make the case now being used in Europe for the current policy mix.

I have two topics I want to highlight this morning. First, there are the US housing inflation numbers from Case Shiller, which are at a 7-year high. Then there is the fiscal drag in the US, Denmark, the UK, the Euro Zone and Canada. What I…

When I see the chart for Euro zone NPLs and look at the numbers, I think debt deflation. And this is exactly the problem with the euro zone's policy mix.

I have been posting for a while now that I think Greece provides the greatest upside potential. Greece's sovereign bonds outperforming was one of my ten surprises for 2013 three months ago. And with bond yields now falling below 10%, Morgan…