sectoral balances

The daily is a bit late today because I had some engagements this morning. Things will be back to normal tomorrow. But expect a late newsletter on Thursday as well. 1. Canada's private sector echoing 1990s America Goldman has a good note…

Major advanced economies have made mixed progress in repairing the private sector’s balance sheets. This column explores private sector deleveraging trends and calls for a set of policies that will return debt to safer levels. Monetary…

Yesterday was a big conference day in Washington, D.C., with the IMF and World Bank meeting and with the Brookings Institution holding an event featuring the Greek and German finance ministers. While I attended the Brookings event, the…

By Frances Coppola I do like sectoral net lending charts. This one is from the OBR's latest Economic Forecast: The thing to remember about sectoral balances is they must sum to zero. It is not possible to have a negative external…

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…

Marshall Auerback was on CNBC yesterday afternoon talking to Kelly Evans and Steve Liesman on Closing Bell. And his read on the US economy is like mine, 1.5-2.0% underlying growth. He thinks the weak Q1 numbers are not just weather-related.…

Godley shows that under all scenarios, debt/gdp stabilises at some combination of interest rate, growth rate and primary deficit/surplus - provided there is full employment. So debt/gdp does not "spiral out of control" if government…

I was just re-reading Richard Werner’s initial quantitative easing scheme for Germany from 1995. What he says is relevant to today’s situation in Europe and the United States as well as for today’s Japan. I want to highlight a few lines…

One of the reasons that it is been so hard for a lot of analysts, even trained economists, to understand the imbalances that were at the root of the current crisis is that we too easily confuse national savings with household savings. By…

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.