monetary policy

The investment climate has proven extremely difficult for investors to navigate. Fed tapering and better world growth was to lead to higher interest rates. Yet interest rates for the developed world have fallen sharply in recent weeks.…

It may be something symbolic such as a small rate cut or possibly a more substantial move such as a new LTRO program, but the European Central Bank will be forced to loosen monetary policy in the near future.

Behind all the noisy economic data over the past month, one key measure is telling the central bank to remain cautious. The Fed's preferred inflation measure, the so-called PCE price index has grown less than 1% over the past year (chart…

By Win Thin and Ilan Solot With their backs against the wall, policy changes are ramping up amongst major EM countries. Yet the positive impact has been limited so far. We do note that countries that tightened aggressively and…

According to Wikipedia, the Taylor rule is a “monetary-policy rule that stipulates how much the central bank should change the nominal interest rate in response to changes in inflation, output, or other economic conditions.” It is named…

Russian Economy Minister Ulyukayev proposed a possible delay to the ruble free float from the current 2015 target. Remarks are noteworthy, as most officials have consistently said the float would come in 2015. He added that the ruble float…

Central banks of several nations who are experiencing sharp currency declines are taking action to stabilize the situation. But not the Russians. The nation's central bank likes the weak ruble because the currency decline boosts the…

- The most important development has been the dramatic rate hike by the central bank of Turkey - The effective tightening by the Turkish central bank was 2.25% - a lot less dramatic than the headlines would suggest - The rate hikes in…

The global capital markets imploded in the second half of last week and investors spent the weekend contemplating the significance. The main focus was on the emerging markets, which were especially hard hit. Emerging market crisis have…

While JPMorgan's Loan to deposit ratio is particularly low, the bank is by no means unique. LTD in the US is at the lows not seen in decades. On an absolute basis the gap between deposits and loans is now at some $2.4 trillion and growing.…