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Fed Shouldn't Raise Rates Yet Because Job Market Still Ailing
Pedro Nicolaci da Costa / WSJ Economics
The Federal Reserve should be very cautious about raising interest rates just because the headline unemployment rate is falling, according to new research from two former central bank officials who are concerned the often-cited figure vastly overstates improvements in the job market.
 
Greece Hammers Out Policies to Satisfy Creditors
WSJ
Greece is hurrying to compile a list of economic overhauls that satisfies its creditors and secures desperately need bailout aid, as it runs increasingly low on cash and debt payments loom.
Related: Charting Greece's Draining Coffers
Mark Gilbert / Bloomberg Views
European authorities are mulling last-resort, worst-case scenarios as Greece's banking system bleeds out.
Related: Mathew D. Rose: Greece - Plus ça change
Yves Smith / Naked Capitalism
Whether the Greek government's protests are substantive or mere grandstanding, any show of opposition is more that the Eurocrats are prepared to accept. And a successful left-leaning government is also seen as a threat in quite a few quarters.
 
Who Holds Euro Assets? We Still Don't Know
Petersen Institute
In a 2013 working paper, Aurel Schubert-the head of the Statistical Department at the European Central Bank (ECB)-and his coauthors wrote that: "Growing current account deficits, especially in the United States and some EU countries, have contrasted with large current account surpluses in some other EU countries, in the oil-exporting ...
Expand sublinks   Also:  Zero Hedge | The Times | Reuters | Spiegel
Related: Europe's Easy-Money Endgame
Hans-Werner Sinn / Project Syndicate
Rescue packages have relieved the eurozone's financial distress, but at a high cost. Not only have they enabled investors to avoid paying for their poor decisions; they have also allowed overpriced southern European countries to defer real depreciation, which is necessary to restore competitiveness.
 
China Reels In Breaks for Business
WSJ
Foxconn and other foreign businesses are fighting to save tax breaks and other benefits, as Beijing cracks down on big spending by local governments.
Related: China Is "One of Most Unequal Countries in the World," IMF Paper Says
Ian Talley / WSJ Economics
A widening gap between China's rich and poor makes "one of the most unequal countries in the world," according to a new working paper published by the International Monetary Fund.
 
Japan: Abe bids to end economic burden
FT
Prime minister says Tokyo deserves more credit for its progress
Related: Japan nears deflation as core CPI hits 0%
FT
 
Saudi battle for Yemen exposes fragility of global oil supply
Ambrose Evans-Pritchard / Telegraph
OPEC's oil giant is at daggers drawn with Iran, is encircled by enemies, and now faces a failed state on its southern border.
 
Default Threat Haunts Ukrainian Corporate Debt Investors
WSJ
Investors in Ukrainian companies' bonds could be facing huge losses, economists warn, amid concerns the country is hurtling toward a costly default on its government debt.
 
The Real Singapore Model
Minxin Pei / Project Syndicate
The system that Lee Kuan Yew crafted during his 31 years as Prime Minister of Singapore is often mischaracterized as a one-party dictatorship superimposed on a free-market economy. But Lee's true genius was in using democratic institutions and the rule of law to curb the predatory appetite of his country's ...
 
More Signs of Wage Inflation
Barry Ritholtz / The Big Picture
From Torsten Sløk: The first chart below shows that over the past year employer costs have risen significantly. The second chart shows that the rise is driven partly by a significant increase in bonuses. The third chart shows that the uptrend in wages can been seen across all parts of ...
 
Bank of England Warns of Risks From Greece and Market Liquidity
Jenny Anderson / DealBook
Still, the central bank said that credit growth in Britain remained moderate and that its banks were increasingly more resilient.
 
Why India's reforms are different this time
CNBC
Uncertainty over government-led reforms remains an overhang for India, but the country's former central bank governor says factors for change are in place.
 
France cuts budget deficit target
BBC
France cuts its budget deficit target for this year and signals that the economic recovery is gathering pace.
 
Putin warns Russia faces 'hostile forces'
FT
President's first major speech since his absence contains claims of west using NGOs to undermine him
Related: The Forgotten Ruble
Pater Tenebrarum / Acting Man
A Currency Disappears Into the Memory Hole After the excitement caused by the collapsing Russian ruble last December, the ruble has seemingly been forgotten. The financial media have certainly fallen silent on the topic. Luckily, we haven't forgotten about it. We first mentioned the the fact that the ruble might ...
 
Dynamic Scoring: A Potential Super Model
WSJ Economy
Capital Account: Chief economics commentator Greg Ip says estimating the costs of policy using dynamic scoring shouldn't be feared if the estimates and assumptions are transparent and rigorous.
 
Why Theories of National Income Based on Accounting Identities Are Nonsensical and Error-Ridden, Part IV
David Glasner / Uneasy Money
In my previous post, I tried to relate the discussion of accounting identities to the familiar circular-flow diagram with injections into and leakages out of the flows of income, expenditure and output. My hopes that framing the discussion in terms of injections and leakages, with investment viewed as an injection ...
 
Guest post: divisive trade blocs set to punish consumers
Guest writer / Beyond BRICs
By Takashi Mitachi, Boston Consulting Group The prize of a new World Trade Organisation (WTO) deal eluded negotiators in Bali at the end of 2013, collapsing over Indian concerns that the planned deal would endanger domestic grain subsidies that help feed India's poor. In the meantime, there has been a ...
Expand sublinks   Also:  Barkley Rosser
 
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Japan: Abe bids to end economic burden
FT
Why India's reforms are different this time
CNBC
Default Threat Haunts Ukrainian Corporate Debt Investors
WSJ
Bank of England Warns of Risks From Greece and Market Liquidity
DealBook
Who Holds Euro Assets? We Still Don't Know
Petersen Institute
More Signs of Wage Inflation
The Big Picture
Greece Hammers Out Policies to Satisfy Creditors
WSJ
Fed Shouldn't Raise Rates Yet Because Job Market Still Ailing
WSJ Economics
Saudi battle for Yemen exposes fragility of global oil supply
Telegraph
China Reels In Breaks for Business
WSJ
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Link: Centre for Macroeconomics
Link: Economic and Social Research Council
 
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