monetary policy

Fred Sheehan provides a compilation of articles and quotes suggesting that the solution to the mortgage problems in the United States bears a striking resemblance to the policies which led to those mortgage problems in the first place.

We continue to identify four main macro issues shaping the investment climate: The tapering anticipation in the US; the stabilization of the Chinese economy; a cyclical recovery in Europe; and the long awaited Japanese purchases of foreign…

By Sober Look Today we saw another confirmation that the UK's placement on the economic cycle curve (see post) in the "recovery acceleration" section is quite reasonable. The KPMG/REC employment report for the UK showed something we haven't…

By Marc Chandler The Reserve Bank of Australia delivered the 25 bp rate cut that was widely expected earlier this week.  Today, the Bank of England provided a new framework for its forward guidance, linking monetary policy to unemployment…

Long-term interest rates are largely a reflection of expected future short-term future interest rates plus a term premium. So when you see yields move up, it reflects either an increase in term premiums from uncertainty or a change in the…

I spoke at a Euromoney conference on inflation-linked products last year. My thesis at the time that deflation is the real problem and that inflation isn't going to be a concern - which has largely proved right - was out of step with most…

By Marc Chandler Today, ECB President Draghi essentially repeated his comments from last month. The key is that rates will remain at current levels or lower for an extended period and, although the economy is gradually recovering, growth…

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: -…

With many observers expecting the Fed to taper in September, disappointment that there was nothing in the statement to support such ideas has seen the dollar fall and the stocks and bonds traded higher.

Janet Yellen is imminently qualified for the Fed Chair position. I think it makes no tactical or strategic political sense to pass her over for a male candidate - because it would rightly be considered a 'passing over' and need serious…