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Tag Archives: monetary policy
Will The Fed Really “Normalize” Its Balance Sheet?
Will The Fed Really “Normalize” Its Balance Sheet? To begin with, how exactly does one define “normalize” in reference to the Fed’s balance sheet? The Fed predictably held off raising rates again today. However, it said that beginning in October it would no longer re-invest proceeds from its Treasury and mortgage holdings and let the […]
Algeria Officially Launches Helicopter Money Amid Sliding Oil Revenue, Budget Crisis
Algeria Officially Launches Helicopter Money Amid Sliding Oil Revenue, Budget Crisis One year ago, the imminent arrival of helicopter money among endless discussions of pervasive lowflation was all the rage within high-finance policy circles. Then, everything changed as if on a dime, and in recent months the dominant topic has been global coordinated tightening – […]
Why Quantitative Easing In The Eurozone Will Be Extended
Why Quantitative Easing In The Eurozone Will Be Extended The staff of the European Central Bank has now released the new macro-economic projections for the Eurozone and whilst the introduction sounds optimistic about an ever-increasing GDP and a relatively stable GDP growth rate, reading between the lines suggests we could see an extended Quantitative Easing […]
Yesterday’s “Watershed” Central Bank Announcement Which Everybody Missed
Yesterday’s “Watershed” Central Bank Announcement Which Everybody Missed In what may have been a watershed moment in monetary policy – which awkwardly was missed by almost everyone as a result of the concurrent launch of the latest North Korean ballistic missile which immediately drowned out all other newsflow – late on Thursday, the Bank of […]
Further Thoughts on Gibson’s Paradox
FURTHER THOUGHTS ON GIBSON’S PARADOX “The paradox is one of the most completely established empirical facts in the whole field of quantitative economics.” – John Maynard Keynes “The Gibson paradox remains an empirical phenomenon without a theoretical explanation” -Friedman and Schwartz “No problem in economics has been more hotly debated.” – Irving Fisher Introduction Two […]
Oh Canada: An Economic Experiment
OH CANADA: AN ECONOMIC EXPERIMENT It seems like the only time Canada makes the news is when America elects some right wing President the Hollywood elite don’t like, and they all threaten to move to Canada. We are usually too polite to say something, as it is often clear the Americans are in the midst […]
See No Evil, Speak No Evil…
SEE NO EVIL, SPEAK NO EVIL… The Jackson Hole speeches of Janet Yellen and Mario Draghi last week were notable for the omission of any comment about the burning issues of the day: …where do the Fed and the ECB respectively think America and the Eurozone are in the central bank induced credit cycle, and […]
Why Governments Expand the Gap Between Rich and Poor
Why Governments Expand the Gap Between Rich and Poor QUESTION: Mr. Armstrong; You said at your Frankfurt the ECB policy of negative interest rates is actually creating a wider gap between the poor and the rich. Could you elaborate on that comment? Thank you. Hop you come back to Frankfurt. You do realize that you get […]
Central Bankers’ Shifting Goalposts
Central Bankers’ Shifting Goalposts BRUSSELS – The theme of this year’s meeting of the world’s central bankers in Jackson Hole, Wyoming, had little to do with monetary policy. “Fostering a Dynamic Global Economy” is, of course, an important topic. But it is telling that the European Central Bank chose, for its own annual gathering, a […]
Bank of Canada Raises Interest Rates… Again
Bank of Canada Raises Interest Rates… Again For the second time in less than two months, the Bank of Canada has raised interest rates. On Wednesday, the central bank raised its overnight lending rate by a quarter per cent to 1 per cent. The move surprised many who weren’t expecting a rate increase until later […]
Loonie Soars After Bank Of Canada Unexpectedly Hikes Rates By 25 bps
Loonie Soars After Bank Of Canada Unexpectedly Hikes Rates By 25 bps With only 6 of 33 forecasters predicting a rate hike in today’s Bank of Canada announcement, it was inevitable: the Bank of Canada surprised a good 75% of the market, and triggered massive stop loss orders in the looni, when moments ago it […]
The Canadian Cointoss: Bank Of Canada Monetary Policy Decision Preview
The Canadian Cointoss: Bank Of Canada Monetary Policy Decision Preview From RanSquawk The majority expects the BoC to leave its overnight rate unchanged at 0.75%. Only 6 of 33 surveyed expect the BoC to hike this time out, while the OIS curve prices in a 45% chance of a hike. A strong Q2 GDP release […]
The Normalization Delusion
The Normalization Delusion LONDON – There is a psychological bias to believe that exceptional events eventually give way to a return to “normal times.” Many economic commentators now focus on prospects for “exit” from nearly a decade of ultra-loose monetary policy, with central banks reducing their balance sheets to “normal” levels and gradually raising interest […]
Nomi Prins: Easy Money Policy Allows for Another Crisis
Nomi Prins: Easy Money Policy Allows for Another Crisis Nomi Prins joined The Foreign Correspondents’ Club of Japan in Tokyo to discuss the banking landscape and state of financial regulations in the Trump era. The central bank historian and financial expert also took a deep dive into the shifting relations between the United States and […]
Monetary Madness and Rabbit Consumption
Monetary Madness and Rabbit Consumption Down the Rabbit Hole “The hurrier I go, the behinder I get,” is oft attributed to the White Rabbit from Lewis Carroll’s, Alice in Wonderland. Where this axiom appears within the text of the story is a mystery. But we suspect the White Rabbit must utter it about the time […]
