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Russian central bank shows how not to intervene
FT
Authorities did too little, too late, too quietly
Related: Ukrainian Prime Minister: Putin 'Needs New Annexations'
Spiegel
In a SPIEGEL interview, Ukrainian Prime Minister Arseniy Yatsenyuk, 40, discusses his country's division, its war with Russia and why he believes all efforts to find a solution with Vladimir Putin will fail.
Related: President Putin Fails to Address Economic Policy
Petersen Institute
A financial meltdown has ravaged Russia in the last two weeks in a fashion reminiscent of 2008 and 1998. The value of the ruble has fallen by more than half since June and import prices are set to double, setting the stage for President Vladimir Putin to address the crisis ...
Related: Putin treats Russia's oligarchs to a free supper
Courtney Weaver / FT The World
After watching their fortunes nosedive over the past year on the back of Russia's annexation of Crimea and adventures in eastern Ukraine, Russia's oligarchs caught a break on Friday night: a free meal on Vladimir Putin.Read more
Related: Belarus: kicking the rouble when it's down
Isabel Gorst / Beyond BRICs
In a dreadful week for the rouble, Alexander Lukashenka, the president of Belarus, has gone out of his way to make matters worse, threatening to suspend the use of the Russian currency in bilateral trading deals. "If they are buying our products in Russia they can pay in dollars," Lukashenka ...
 
Two Fed Dissenters Air Opposing Views
WSJ Economy
The presidents of the Minneapolis and Philadelphia regional Fed banks both dissented for different reasons at the central bank's policy meeting Wednesday and on Friday elaborated on their dovish and hawkish rationale.
Related: Fed's Plosser Explains Dissent Vote, Says Policy Language Still Calendar-based
Michael S. Derby / WSJ Economics
Federal Reserve Bank of Philadelphia leader Charles Plosser said in a statement Friday the U.S. central bank is failing to make its monetary policy stance truly dependent on how the economy performs.
Related: Fed's Lacker: Rate Rises Will Depend On Economy's Path
Michael S. ... / WSJ Economics
Federal Reserve Bank of Richmond President Jeffrey Lacker said Friday he isn't ready to say when the U.S. central bank should raise rates.
Related: Fed's Williams: No Rate Increase Likely For a Couple of Meetings
Michael S. Derby / WSJ Economics
NEW YORK--Federal Reserve Bank of San Francisco President John Williams affirmed Friday that he believes any increase in short-term interest rates is unlikely to happen until the middle of next year.
Related: Monetary Policy and the Output Gap
St. Louis Fed
by Fernando M. Martin. Overestimating how far the economy is away from its potential unnecessarily risks delaying the end of unusual monetary accommodation.
 
ECB's Constancio sees negative inflation rate in months ahead: magazine
Reuters
BERLIN (Reuters) - ECB Vice President Vitor Constancio said in a German magazine interview that he expected the inflation rate to turn negative in the coming months but added that if this was just a...
Related: Eurozone 'weaklings' will have to shoulder QE risks
The Times
The European Central Bank is looking into ways of ensuring that weaker eurozone members bear a larger burden of the...
Related: European Banking Union and financial integration
Bruegel
At a famous summit in June 2012, the European leaders announced that they intend to "break the vicious circle" between banks and sovereigns. This decision started a new step in European integration. Arguably, the creation of the so-called banking union constitutes the most significant deepening of policy integration since the ...
Related: Is the ECB Doing Enough?
Peter Praet / Project Syndicate
The ECB has implemented a series of measures in response to economic sluggishness and financial trepidations in the euro area. Tentative evidence suggests that the measures are delivering tangible benefits to the European economy, and the ECB still has plenty of weapons in its arsenal should they prove necessary.
 
China cuts red-tape for foreign bank branch openings, RMB business
CNBC
SHANGHAI, Dec 20- China has cut red-tape for foreign bank branch openings and entry into renminbi business, state media said on Saturday, the latest in a series of measures to liberalise the banking sector. Banks now no longer have to first establish a China representative office before setting up other ...
Related: China Boosts 2013 GDP Calculations
WSJ Economy
China announced Friday that world's second largest economy was 3.4% larger than previously thought last year-chiefly due to a more accurate counting of services and their impact on economic output.
Related: The United States Needs a Free Trade Deal with China
Petersen Institute
A bilateral free trade agreement would increase US national income by more than $100 billion annually and increase China's by more than $300 billion a year. Op-ed by Maurice R. Greenberg and C. Fred Bergsten.
Related: China looks to Europe - through the Balkans
Andrew MacDowall / Beyond BRICs
In the pale sunlight of an unseasonably warm December day, Chinese Premier Li Keqiang and Serbian Prime Minister Aleksandar Vucic on Thursday cut the ribbon to open the Mihailo Pupin Bridge, spanning the Danube in west Belgrade. Logistically, the $170m, 1.5km bridge, built by state-owned China Road and Bridge Corporation, ...
 
Poll shows SYRIZA's lead over New Democracy narrowing
Kathimerini
A Public Issue poll published on Friday showed SYRIZA's lead over New Democracy narrowing by 4.5 percentage points since last month. Nevertheless, the opposition party still held a lead of 7 percentage points over the conservatives, according to the polli... ...
Expand sublinks   Also:  WSJ | Kathimerini
Related: Greek MP alleges bribe offer for vote
Al Jazeera
Politician claims he was offered at least $2.5m to vote in favour of government's presidential candidate.
Related: Greece may have to set money aside to cover bond losses
Kathimerini
European Central Bank officials are considering ways to ensure weak countries that stand to gain most from a fresh round of money printing bear more of the risk and cost. Officials, who spoke on condition of anonymity, have told Reuters that the ECB could... ...
Related: All the Eurozone wants for Christmas is a new Greek President
Geoffrey Smith / Fortune Finance
But Greece's famously fractious politicians might yet ruin the holidays for Merkel, Draghi & Co.
 
Coordination, Efficiency, and the Coase Theorem
Rajiv / Rajiv Sethi
A recent post by Matt Levine starts out with the following observation:A good general principle in thinking about derivatives is that real effects tend to ripple out from economic interests. This is not always true, and not always intuitive: If you and I bet on a football game, that probably ...
 
Ignore deflation fears, low oil, food and energy prices are great news for UK consumers
Andrew Sentance / Telegraph
Wages, spending and asset prices are all rising, setting up a very good economic scenario as we head into 2015
Related: Bail-in plans tested at UK banks
IFR
A 35% fall in house prices accompanied by a four percentage-point increase in base rates would trigger the conversion into equity of additional Tier 1 notes issued by three of the eight UK banks stress tested with this scenario by the Bank of England last week.
 
Econoclast: Finding the Floor, or Ceiling, for Oil Prices
Anatole Kaletsky / NY Times
The dividing line between monopolistic oil pricing and a competitive market is around $50 a barrel. Both have been seen as OPEC's power has waxed and waned.
Related: The Decline of Petrodollars
macromon / Global Macro Monitor
Last week we pointed out that the crash in oil prices will reduce global liquidity as the revenue of oil exporters falls dramatically. This raises an interesting question: as petrodollars come out and flows to financial markets are reduced, shrinking ... Continue reading →
Related: A falling oil price is good for the world economy
FT
Fears that cheaper crude creates yet more deflation are misplaced
 
Exploring the Increasingly Widespread Decline in Involuntary Part-Time Work
macroblog / MacroBlog
We at the Atlanta Fed have been arguing for some time that the unusually large number and share of workers employed part-time but wanting full-time work (counted in the Current Population Survey as part-time for economic reasons, or PTER) partly...
 
The year the sun set on the Bric economies
Telegraph
As the emerging markets' bubble burst, Western capitalism defied the pessimists, reports Jeremy Warner
Related: Hello 2015: Amid the currency turmoil, good auguries for EM
James Kynge / Beyond BRICs
By Jan Dehn, Ashmore Group As the Fed prepares to hike rates in 2015, the window of opportunity presented by hyper-easy monetary policies for developed economies to undertake deeper fundamental reforms is rapidly closing. So far, hardly any progress has been made. President Obama's tenure has not seen the country's ...
 
Bank of Japan keeps record easing
South China Morning Post
The Bank of Japan maintained unprecedented stimulus, as governor Haruhiko Kuroda's bid to stoke inflation faces increasing challenges from the plunge in oil prices.
Related: Grand Central: Bank of Japan downplays Oil-Deflation Worries-For Now
WSJ Economics
The biggest current threat to the Bank of Japan's pledge to foster 2% inflation by next year is the sharp drop in global oil prices. But Gov. Haruhiko Kuroda is downplaying such concerns for now, instead welcoming the resulting boost to growth and insisting he will hit his price target ...
 
The assumption that less immigration equals less inequality is fundamentally flawed
EUROPP
Does immigration exacerbate inequality? Katy Long presents evidence from her new book, The Huddled Masses: Immigration and Inequality, indicating that freedom of movement can play a vital role in combating poverty and opening up opportunities for both immigrants and a state's native population. She argues that a restrictive migration policy ...
Related: Centre for Economic Performance Real Wages Update--December 2014 [pdf]
Petersen Institute
Prospects for a boost in the real wages of UK workers remain bleak, despite some commentators still continuing to paint a more optimistic picture. This report, the latest in a new series of CEP Real Wages Updates, notes that the most recent wage numbers (for the year to October 2014) ...
Related: Piketty Sticks to Wealth Tax Proposal, Sees Positive Signs
Paul Hannon / WSJ Economics
Thomas Piketty's "Capital in the 21 st Century" was a 2014 must-read for anyone interested in economics. But while his claim that income and wealth inequality has risen over recent decades to highs last seen before the start of the First World War was widely accepted, his policy prescriptions were ...
 
Mathew D. Rose: Germany's Dubious Successes
Yves Smith / Naked Capitalism
Germany will have clocked up a number of dubious concomitant successes this year. But these products of German hubris look like pyrrhic victories
Related: German construction orders fall for fifth straight month
Reuters
BERLIN (Reuters) - German construction contracts dropped by 4.5 percent on the year in October, their fifth consecutive monthly fall, data from the Federal Statistics Office showed on Friday,...
Related: German consumer confidence highest in eight years
Elizabeth Anderson / Telegraph
Consumer sentiment is up as shoppers hit the stores for Christmas and looked to the new year with optimism
 
Weak growth prompts India fiscal rethink
FT
Finance ministry seeks to make room for a surge of public investment in infrastructure
 
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Russian central bank shows how not to intervene
FT
ECB's Constancio sees negative inflation rate in months ahead: magazine
Reuters
Bank of Japan keeps record easing
South China Morning Post
The assumption that less immigration equals less inequality is fundamentally flawed
EUROPP
Poll shows SYRIZA's lead over New Democracy narrowing
Kathimerini
China cuts red-tape for foreign bank branch openings, RMB business
CNBC
Eurozone 'weaklings' will have to shoulder QE risks
The Times
Coordination, Efficiency, and the Coase Theorem
Rajiv Sethi
Exploring the Increasingly Widespread Decline in Involuntary Part-Time Work
MacroBlog
Ignore deflation fears, low oil, food and energy prices are great news for UK consumers
Telegraph
What's this?
Link: Centre for Macroeconomics
Link: Economic and Social Research Council
 
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