Category Archives: macroeconomics

Conserveratives Were Correct: We Have Record-breaking Inflation! What’s Next?

by Fabius Maximus, FabiusMaximus.com Summary: Today we look at inflation, past and present. It tells much about who to trust for economic analysis, the current state of the US economy, and what we can expect in the future. Contents Introduction … Continue reading

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The Urgent Need to Recapitalize Europe’s Banks

by Harald Benink and Harry Huizinga This piece is originally from Voxeu.org (June 05, ’13) Europe has been postponing the recapitalization of its banking sector. This column argues that it has been doing so for far too long. Without such … Continue reading

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Terminal Velocity (10) – “Minds and Hands on the Joystick”

Written by Adam Whitehead, KeySignals.com From Terminal Velocity (3) – “The Pyramid Scheme”[i]: Reading between the lines, it is clear that the Fed intends to maintain a large balance sheet of assets for some time; even after interest rates have … Continue reading

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Fed’s QE Has No Impact on Full Time Jobs, Ratio Stuck at 1983 Levels

by Lee Adler, Wall Street Examiner In Part 1 of this report we looked at non-farm payrolls, which come from the BLS the Current Employment Statistics Survey or CES, a survey of business establishments. The BLS also does a survey … Continue reading

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Opimizing Investment

by Michael Pettis, China Financial Markets In my May article I referred to a very interesting IMF paper written by Il Houng Lee, Murtaza Syed, and Liu Xueyan. The study, “China’s Path to Consumer-Based Growth: Reorienting Investment and Enhancing Efficiency”, … Continue reading

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The Real Experiment That Is Being Carried Out In Japan

by Edward Hugh, Euro Watch Editor’s note: This was written nearly four weeks ago and posted at Edward.Hugh.Blog 24 May 2013 The future never resembles the past – as we well know. But, generally speaking, our imagination and our knowledge … Continue reading

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Rethinking Macroeconomic Policy: Getting Granular

by Olivier Blanchard, Giovanni Dell’Ariccia and Paolo Mauro This article was first published at Voxeu.org 31 May 2013 The Global Crisis has shaken the consensus on how to run macroeconomic policy. Three years ago, the authors discussed this issue at … Continue reading

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Joe Sixpack’s Situation: 1Q2013 View Continues to Improve

Written by Steven Hansen A Federal Reserve data release (Z.1 Flow of Funds) for 1Q2013 provides insight into the finances of the average household – and our beloved “Joe Sixpack”. Our modeled “Joe Sixpack” – who owns a house and … Continue reading

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Terminal Velocity (11) – “Getting Real Interesting”

Written by Adam Whitehead, KeySignals.com In terminal Velocity “Minds and Hands”, the threat from the debt crisis becoming amplified by deflation was introduced into the narrative leading up to Jackson Hole. It was observed that: In relation to the “Inflation … Continue reading

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The Great Debate©: Helicopter Money As A Policy Option

by Lucrezia Reichlin, Adair Turner and Michael Woodford Voxeu.org published this article originally on May 20, 2013 Editor’s note:  This article summarises a CEPR-London Business School debate between Adair Turner and Michael Woodford on this policy option chaired by Lucrezia … Continue reading

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Carry Trade and Emerging Market Crises in the IS/MY Model

by Dirk Ehnts, Econoblog101 I have been developing my own model (or better: sketch, framework?) recently, showing how the liquidity trap can be incorporated into it. I have drawn the connection between monetary aggregate and interest rate the traditional way. … Continue reading

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On Whose Research Is the Case for Austerity Mistakenly Based?

by Jeffrey Frankel, Jeff Frankel’s Weblog Several of my colleagues on the Harvard faculty have recently been casualties in the cross-fire between fiscal austerians and stimulators. Economists Carmen Reinhart and Ken Rogoff have received an unbelievable amount of press attention, … Continue reading

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The Mother of All Painted-In Corners

by John Mauldin, Thoughts from the Frontline Alice laughed. She said, “There’s no use trying – one can’t believe impossible things.” The queen said, “I daresay you haven’t had much practice. When I was younger, I always did it for … Continue reading

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The Great Job Disaster

by C.P. Chandrasekhar and Jayati Ghosh, Triple Crisis Note: This article first appeared at TheHinduBusinessLine.com In the desperate search for evidence that the global recession has bottomed out and the recovery has arrived, the story told by the long-term trend … Continue reading

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Historical Echoes: The “Mississippi Bubble”

Analysis from Liberty Street Economics Historical Echoes: The “Mississippi Bubble” – When One’s Back Could Be Rented Out as a Writing Desk by Amy Farber, Federal Reserve Bank of New York In 1720, the very same year that England was … Continue reading

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Come Back to Gold

by Ludwig von Mises, Ludwig von Mises Institute [Excerpted from chapter 11 of Omnipotent Government by Ludwig von Mises.] The gold standard was an international standard. It safeguarded the stability of foreign exchange rates. It was a corollary of free … Continue reading

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Austerity and Growth Perspectives: Europe, the IMF, China, and the US (Part: 2)

by Elliott Morss, Morss Global Finance Note: A version of this article was published by Deutsche Welle, 23 May 2013. Introduction Part. 1 of this report highlighted the positions of the IMF and Europe on the austerity/growth trade-off as reflected … Continue reading

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On the Imposition of the German Export-led Growth Model on the Eurozone

by Dirk Ehnts, Econoblog101 Martin Wolf had an article in the FT yesterday about the German growth model being applied to the whole euro zone. He notes that because of the flawed analysis that ‘government debt did it’ there is … Continue reading

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Escaping Liquidity Traps: Lessons from the UK’s 1930s Escape

by Nicholas Crafts This article was originally published by Voxeu.org on May 12, 2013 The UK escaped a liquidity trap in the 1930s and enjoyed a strong economic recovery. This column argues that what drove this recovery was ‘unconventional’ monetary … Continue reading

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Terminal Velocity (9) – “Helicopter Take-off”

Written by Adam Whitehead, KeySignals.com From Terminal Velocity (3) – “The Pyramid Scheme”[i]: Reading between the lines, it is clear that the Fed intends to maintain a large balance sheet of assets for some time; even after interest rates have … Continue reading

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