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Markets brace for ECB stress tests
FT
European financials gain in run-up to results
Related: Leaked document shows 25 banks failed ECB safety tests
James Titcomb / Telegraph
Twenty-five of the 130 banks have failed the comprehensive assessment of their financial health, according to reports
Related: Commission silent as foundation for increased EU budget contributions remains unclear
Open Europe blog team / Open Europe
Currently, there is still no clear explanation for where the demand for increased contributions to the EU budget came from or exactly how it was calculated - see our comprehensive analysis here. While the Dutch and the Brits are both concerned about being asked to contribute more, they are actually ...
Related: Uneasy Europe Awaits Bank Stress Test Results
Jack Ewing / NY Times
The outcomes, to be disclosed Sunday, could unsettle markets if they show that more banks are in trouble than previously thought.
 
American-Made Financial Repression
Andrew Sheng, et al. / Project Syndicate
The late economist Ronald McKinnon argued that China and the US, by working together, could alleviate financial repression and enhance global monetary stability. Unfortunately, this advice is not popular among US economists and policymakers, who prefer the short-term political advantages afforded to them by free-market rhetoric.
 
Today's Deficit is not the Problem
David Wessel / Brookings
There are reasons to be relaxed about the federal deficit. But... When the books closed on fiscal year 2014 on Sept. 30, revenues were up 9% and spending was up just 1%. Even Medicare grew slowly. The deficit, the gap between income and outlays, was 2.8% measured against the gross ...
Expand sublinks   Also:  Kathimerini | WSJ Economics
Related: Guest Contribution: Is the US Current Account Deficit Problem Over?
Menzie Chinn / Econbrowser
Today we are fortunate to have a guest contribution written by Jeffrey Frankel, Harpel Professor of Capital Formation and Growth at Harvard University, and former Member of the Council of Economic Advisers, 1997-99. The latest World Economic Outlook, released this month by the International Monetary Fund, warns that even though ...
 
Productivity, Recessions & New Levels of Productive Capacity
Angry Bear
There has been a conversation in the comments section of a previous post on Productivity's role as a cause of recession. The issue is whether increasing productivity causes recessions, as opposed to tight money policy or something else. Truly, a recession is caused by a blend of factors, including monetary ...
 
Monetary policy and inequality in the US
VoxEU
There are several conflicting channels through which monetary policy could affect the distribution of wealth, income, and consumption. This column argues that contractionary monetary policy raised inequality in the US, while expansionary monetary policy lowered it. This evidence stresses the need for monetary policy models that take into account heterogeneity ...
Related: The 1% are more likely to vote than the poor or the middle class, and it matters - a lot
Sean McElwee / Vox
Does it matter that the wealthy turnout to vote at a rate of almost 99% while those making below $10,000 vote at a rate of 49%? It sure seems like it would, but for a long time many political scientists and journalists believed it didn't. In their seminal 1980 study ...
 
Merrill Lynch: FOMC Preview
Bill McBride / Calculated Risk
From Merrill Lynch: The October FOMC meeting is likely to see the end of QE3 buying, as the Fed tapers the final $15bn in asset purchases. ... Tapering has been largely contingent on an improving labor market, and that has generally continued. The FOMC also has indicated multiple times that ...
 
Pain Begins to Spread as China's Home Prices Fall for Fifth Straight Month
Business Week
Cities relax or abandon purchasing restrictions in a bid to avoid more serious downturn
Related: China's Imperial President
CFR
Xi Jinping's reforms are designed to produce a corruption-free, politically cohesive, and economically powerful one-party state with global reach: a Singapore on steroids. But there is no guarantee the reforms will be as transformative as the Chinese leader hopes, says Elizabeth Economy.
 
George Osborne hails UK GDP figures
Telegraph
Chancellor George Osborne has welcomed the news that UK economy grew by 0.7pc during the third quarter of this year
 
Continent's Drift: The Conflict Between Germany and the E.C.B. That Threatens Europe
Neil Irwin / NY Times
Unlike Germany, Mario Draghi and the European Central Bank see a long deflationary period as the biggest danger for Europe.
 
Love Your Country, Reform Its Tax Code
Robert J. Portman / Bloomberg Views
Even with new majorities in Congress, a bipartisan remaking of the tax code is possible.
Expand sublinks   Also:  TaxProf Blog
 
EU energy deal to hurt Putin, says Davey
FT
European bloc agrees 40% cut in carbon emissions by 2030
Related: Putin Says Don't Mess With Mother Russia
Marc Champion / Bloomberg Views
If President Vladimir Putin is Russia, as a senior Kremlin official said this week, then this country is angry, humiliated and suffering from an almost
Related: The Surprise in Ukraine's Coming Elections
Stephen Sestanovich / WSJ Washington Wire
Stephen Sestanovich: This could be the first election anywhere in the former Soviet Union in which the Communist Party falls below the 5% minimum required to win a bloc of seats.
Related: Russia's VTB Bank says challenges Western sanctions in European Court
Reuters
MOSCOW, Oct 24 (Reuters) - Russia's second-largest bank VTB Bank said on Friday it had launched a legal challenge in a European Union court over Western sanctions imposed on the bank over the Ukraine...
 
Renzi to thrash out budget compromise with EC
Gazzetta Del Sud
Rome, October 24 - Premier Matteo Renzi said Friday in Brussels that debate at the European Union summit that just ended was "tough and intense, as always". There are "no particular worries or concerns" over Italy's 2015 budget, the premier added. "We will close what needs to be cl...
 
Is this Abenomics' moment of capitulation?
IFR
Shinzo Abe's eponymous economic growth plan could be on its last legs.
 
French unemployment hits new record high
France 24
After a slight improvement in August, the number of jobless in France once again increased in September, reaching a new record high of 3.43 million unemployed, government figures revealed Friday.
Related: French Unemployed Hits Record High, Hollande Demands EU Budget "Must Be Adapted"
Tyler Durden / Zero Hedge
France's President Francois Hollande states confidently that "everyone should respeoct treaties," then 'Junckers' it with this stunningly hypocritical bullshit, "budget rules must be adapted" to support growth and France "has done what it has to do" on its deficit... one glance at the following chart suggests that Hollande has done ...
 
5 Ways Falling Oil Prices Are Helping the Economic Numbers
Kathleen Madigan / WSJ Economics
Dropping energy prices-a big positive for the economy-are filtering through recent economic data. Here are five ways gasoline prices have been a factor in recent reports.
Related: Saudis Vs Oil Markets: Who's Playing Whom?
Gaurav Sharma, Contributor / Forbes
Oil prices have fallen by over 20% in the last couple of months. Brent is currently trading $30 below its summer spike to $115 per barrel and many are left wondering what the Saudis are playing at. Based on conventional wisdom, past moves and motives, Saudi Arabia should lower production ...
 
Room for Debate: Challenges for Brazil's Next President
NY Times
Jump-start the sluggish economy, improve social services or fix a political system seen as corrupt and dysfunctional?
Related: Addressing Inequality Will Be a Long Struggle in Brazil
CFR
Ahead of the presidential election on Sunday, Julia Sweig reflects in the "Room For Debate" section of the New York Times on the challenges ahead as Brazil seeks to confront its persistent inequality.
Related: Common Sense: In Brazil Election, a Stark Choice on Economic Direction
James B. Stewart / NY Times
Rarely, if ever, has such a pro-growth, market-friendly candidate emerged as a serious presidential contender in a developing country.
Related: In Brazil, Election Fatigue Sets In
Kenneth Rapoza / Forbes
If Dilma wins on Sunday, she will need to move quickly to show naysayers, and the market, that while social programs are sacrosanct, the economy is its master. A well-received Finance Minister will be blessing.
 
India a country of enormous energy and power: John Kerry
Financial Express
Describing India as a country of enormous energy and power, US Secretary of State John Kerry...
 
Hong Kong's Protesters Not Going Home, Says Former Government Official
WSJ China Real Time Report
"Time to go home," former Hong Kong Chief Executive Tung Chee-hua told pro-democracy protesters today. But his former deputy thinks demonstrators won't clear the streets unless there are concessions on elections.
 
Credit line only open to Greece if it meets economic targets, sources say
Kathimerini
Greece will only be able to access to a precautionary credit line, currently being discussed between Greek government officials and their eurozone counterparts, if the country finds itself locked out of capital markets, according to sources in Brussels wh... ...
 
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French unemployment hits new record high
France 24
Monetary policy and inequality in the US
VoxEU
Is this Abenomics' moment of capitulation?
IFR
Renzi to thrash out budget compromise with EC
Gazzetta Del Sud
EU energy deal to hurt Putin, says Davey
FT
Merrill Lynch: FOMC Preview
Calculated Risk
5 Ways Falling Oil Prices Are Helping the Economic Numbers
WSJ Economics
Productivity, Recessions & New Levels of Productive Capacity
Angry Bear
Love Your Country, Reform Its Tax Code
Bloomberg Views
Today's Deficit is not the Problem
Brookings
What's this?
Link: Centre for Macroeconomics
Link: Economic and Social Research Council
 
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