monetary policy

Many continue to argue that the rate normalization taking place now will slow business activity in the US. Good luck betting on that however. There is no question that corporate America had benefited tremendously from extraordinarily low…

Andrea Terzi Dr. Terzi is a Professor of Economics at Franklin University Switzerland and a Research Associate with the Levy Economics Institute of Bard College. One thing’s for sure: The financial crisis has dealt a deadly blow to what…

I’m doffing my cap to the researchers at Threadneedle Street for a new paper “Money creation in the modern economy,” which gives a truly realistic explanation of how money is created, why this really matters, and why virtually everything…

So finally we get to see what the Yellen Fed is all about. And it is not as dovish as people thought it would be.While the noises Yellen made concerning the jobs market came across as dovish, behind the scenes a more hawkish tone has…

By Marc Chandler There has been sharp rise in US interest rates and the dollar in the immediate response to the Federal Reserve's statement. The key it seemed was the expectation that federal funds would be at 1% at the end of next year.…

Remember that the rest of the world has so far accepted the experiment that is Abenomics not only because Japan has been running a current account deficit (thus making it more reasonable for Japan to weaken its currency), but also because…

By Win Thin and Ilan Solot The Crimean crisis threatens to escalate again this week. Russian forces in Crimea have been increased and they are consolidating their control of Crimea. This involves neutralizing Ukrainian bases in Crimea and…

Themes for today: The US faces political constraints in a cyclical downturn that will limit government response The US private surplus is under assault Europe is improving and upgrades to bank stocks are bullish The Fed tends to…

Business lending in the Eurozone is very poor - flat in the major core countries and falling in the periphery. There is a desperate need to ease credit conditions for SMEs in periphery countries. The slight easing of interest rates on…

In trying to assess the trajectory of the US economy, one is struck by the recent divergence between the manufacturing and the services sectors. Most analysts blame the weakness in the service sector and the resulting softness in the labor…