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Back to School For the Euro
Erik Swarts / Market Anthropology
For lack of a better name, we call it Sunday night feeling in our house. It usually hits the kids around two or three in the afternoon and spreads with doleful interactions up the chain of command, eventually reaching its peak just before dinner. "I don't want to go to ...
Related: Rekindling Europe's repackaged debt market will take years
Reuters
* IOSCO's Medcraft says tarnished sector needs re-inventing
Related: Grand Central: Euro Will be Judge and Jury for Mario Draghi
WSJ Economics
The Wall Street Journal's Daily Report on Global Central Banks for Tuesday, September 2, 2014. Brian Blackstone identifies movements in the euro's exchange rate as the key test of whether the ECB's future efforts to boost growth and inflation will bear fruit.
Related: Once again we wait for "shock and awe" from the ECB
Sober Look
The ECB (Eurosystem) balance sheet continues to decline as the LTRO/MRO loans to the banking system are repaid. We've seen a decline of about one trillion euros in the past year and a half.Eurosystem consolidated balance sheet (source: ECB)Anywhere else this would have been considered a massive tightening of monetary ...
Related: Italian deflation?
John Cochrane
Giulio Zanella has a nice post on noisefromamerika, dissecting the sources of Italian deflation. (In Italian, but Google translate does a pretty good job.) Deflation can come from lack of "demand," or from technical innovation and increases in supply. What do the data suggest?The right hand column gives inflation by ...
 
Actually, the Chinese Can Do the High-Skilled Jobs at Lower Cost Too
CEPR
Joe Nocera had a good piece discussing the plight of factory workers in the United States subjected to low cost competition from China and other developing countries. He argues that the government has done too little to help the workers and the communities that have suffered from such competition. However ...
Related: Baby Boom or Economy Bust: Stern Warnings About China's Falling Fertility Rate
WSJ China Real Time Report
China needs a baby boom-and badly, researchers say.
Related: China Fights Local Budget Corruption With New 'Economic Constitution'
Business Week
Under the new rules, localities in China can finally issue their own municipal bonds to raise money
Related: Writing China: Nicholas Lardy, 'Markets Over Mao'
Bob Davis / WSJ Economics
In his latest book, "Markets Over Mao," economist Nicholas Lardy takes on China's state-owned enterprises and comes to a surprising conclusion.
Related: 60% of U.S. Companies Feel Less Welcome in China
Laurie Burkitt ... / WSJ China Real Time Report
U.S.-based food processor OSI Group spent more than two decades and $750 million building a business in China that served McDonald's and other fast-food chains. That all collapsed in July.
Related: Beijing Ruling on Hong Kong Election Stirs Fear Over City's Status as Finance Hub
WSJ China Real Time Report
Hong Kong has prospered as a financial and business center through both British and Chinese rule by being able to largely ignore politics and focus squarely on the bottom line. Now, politics are coming to the fore.
 
CBO, Fed Growth Forecasts Unattainable, Northwestern's Gordon Says
Jon Hilsenrath / WSJ Economics
The Congressional Budget Office's projection of modest annual U.S. output growth of 2.2% in the coming decade is unattainable, as is the Federal Reserve's expectation of growth near 3% in the next two years, according to a new paper by Northwestern University economics professor Robert Gordon.
Related: Fed Positioning to Normalize Policy
Tim Duy / Fed Watch
With the leaves turning to gold signalling the end of summer, so too will the Fed be facing its own change of seasons as quantitative easing comes to an end. With asset purchases likely ending in October, time is growing short for the Fed to communicate a plan for the ...
 
Hard money is not a mistake
Steve Randy Waldman / interfluidity
Paul Krugman is wondering hard about why fear of inflation so haunts the wealthy and well-off. Like many people on the Keynes-o-monetarist side of the economic punditry, he is puzzled. After all, aren't - wealthy debt holders - often also equity holders? Why doesn't their interest in the equity appreciation ...
Related: Why Does the Power of the Hard Money/Fiscal Austerity Orthodoxy Persist?
Cullen Roche / Pragmatic Capitalism
Doc K asks an important question on his blog this weekend - how, after all of these years of being dreadfully wrong, do the Austerians and inflationistas still garner so much attention? I think it's simple: The idea that inflation is always bad is very simple to digest (even though ...
 
Finland’s Lesson for Ukraine
RENÉ NYBERG / NY Times
Small countries with big and powerful neighbors must find their own way to survive.
 
Japan's 'Abenomics' feared in trouble as challenges build
Reuters
TOKYO (Reuters) - Prime Minister Shinzo Abe's plan for Japan's economy to generate self-sustained growth on the back of his three policy "arrows" of massive monetary easing, spending and reform...
Related: Is Japan's Aging Population Really Going to Shrink Into Oblivion?
CEPR
That's what a Reuters story on the NYT website said Japanese leaders are troubled by. The piece told readers: "Policymakers are also pledging to draft a vision of how to keep Japan's ageing population from shrinking into oblivion, holding the line at 100 million in 2060, a 20 percent drop ...
Related: Modi Wants Close Japan Ties to Counter China
WSJ
The leaders of Japan and India pledged to step up defense and economic cooperation as the two Asian powers aim to build a strategic counterweight to China.
Related: Japan Finance Minister Aso says economy's recovery trend remains intact
Reuters
TOKYO (Reuters) - Japanese Finance Minister Taro Aso said on Tuesday that the economy remains in a recovery trend, following a slew of economic indicators that cast some doubt about the strength of a...
 
India Needs More Banks, Not Just Bank Accounts
Dhiraj Nayyar / Bloomberg Views
India's Narendra Modi wants to bring bank accounts to 800 million people. Why he's going about it the wrong way.
Related: Chart Of The Week: India's Growth Rebound A Promising Start
Fathom Consulting / Alpha Now
The pick-up in India's GDP growth during the second quarter of this year is encouraging. It points to incipient signs of a domestically-led recovery and confirms the positive momentum witnessed in recent months across a wide range of soft and hard data. But it is probably too early to say ...
Related: Guest post: UK investors dive into Indian debt
Guest Writer / Beyond BRICs
By Ian Dixon of Investec Following his government's first budget there has been much debate about the amount of change Narendra Modi, India's new prime minister, will be able or willing to achieve. His supporters counter such scepticism by arguing that the government is just three months old and to ...
Related: Why India's Modi and Japan's Abe Need Each Other - Badly
Charlie Campbell / Time
The two Asian leaders are looking to strengthen ties during their meetings in Japan to counter a rising China
 
France Needs a "Thatcher Moment" But First a Depression
Mike Mish Shedlock / Mish
It is amusing reading day in and day out the Keynesian cure for what ails Europe, especially France.Consider France. Public spending amounts to 57% of French GDP, yet Keynesians want still more. The sad irony is that 100% would not be enough. In fact, it would make matters worse.France suffers ...
 
Sterling tumbles as poll puts Yes campaign within 'touching distance of victory'
Szu Ping Chan / Telegraph
Analysts say sterling could fall further in the run-up to Scotland's independence vote on September 18
Related: British technology's biggest risk: A skills shortage
Here Is The City
Britain's capital has firmly established itself on the global tech scene, but there remain some risks to its upward trajectory.
Related: Boris Johnson: Cameron must stick to Heathrow manifesto pledge
Nathalie Thomas / Telegraph
London's Mayor says other politicans need to come out of their "fox holes" on airports policy and issues a stern reminder to the Prime Minister that he was elected on a pledge not to expand Heathrow airport
Related: Car insurance: where every pound ends up
Richard Dyson / Telegraph
Here's where all your car insurance premium goes - down to the average £26 spent by whiplash fraudsters on holidays
 
Scottish independence: Four reasons why the narrowing gap is significant
Alberto Nardelli / Guardian
A Scottish independence referendum poll by YouGov has the no lead down to six points from more than 20 in early August. Is it game on in Scotland? A poll released on monday evening by YouGov shows the no (to independence) lead collapsing to only six points. In early August ...
 
Same old story - poor getting poorer and more indebted and the rich ...
Bill Mitchell
I have started to research the idea of the disappearing or shrinking middle class as part of a book project (for 2015) I am amassing materials for. The idea is simple but the conceptualisation and demarcation of the idea is ... Read the rest of this entry ...
 
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Same old story - poor getting poorer and more indebted and the rich ...
Bill Mitchell
Scottish independence: Four reasons why the narrowing gap is significant
Guardian
Sterling tumbles as poll puts Yes campaign within 'touching distance of victory'
Telegraph
France Needs a "Thatcher Moment" But First a Depression
Mish
India Needs More Banks, Not Just Bank Accounts
Bloomberg Views
Japan's 'Abenomics' feared in trouble as challenges build
Reuters
Finland’s Lesson for Ukraine
NY Times
CBO, Fed Growth Forecasts Unattainable, Northwestern's Gordon Says
WSJ Economics
Actually, the Chinese Can Do the High-Skilled Jobs at Lower Cost Too
CEPR
Back to School For the Euro
Market Anthropology
What's this?
Link: Centre for Macroeconomics
Link: Economic and Social Research Council
 
Last Updated: 06:54 GMT     Tuesday, 2 Sep. 2014 Archive About FAQ Home