The Great Debate

Financial strains show first sign of easing

February 17, 2009

John Kemp Great Debate– John Kemp is a Reuters columnist. The views expressed are his own –

The volume of excess reserves commercial banks are holding with the Federal Reserve System has declined by $275 billion (31 percent) over the last five weeks, in what could be the first sign of stabilization within the core of the banking system (https://customers.reuters.com/d/graphics/RESBAL.pdf).

No alternative to inflation

February 9, 2009

John Kemp Great Debate– John Kemp is a Reuters columnist. The views expressed are his own –

Every budding economist is taught the distinction between nominal variables (expressed in terms of contemporary cash values) and real variables (adjusted for inflation and expressed in constant-dollars).

Playing chicken with the Fed

February 4, 2009

John Kemp Great Debate– John Kemp is a Reuters columnist. The opinions expressed are his own –

Yields on long-term U.S. Treasury debt continued to surge higher yesterday as the market braced for a future upturn in inflation and a tidal wave of long-dated issues that will be needed to fund the bank rescues and the emerging stimulus package.

Obama’s investment horizon for clean energy

January 28, 2009

John Kemp Great Debate– John Kemp is a Reuters columnist. The opinions expressed are his own –

Like a Byzantine emperor, a U.S. president’s every public move is scripted to send signals about his priorities to Congress, the electorate, business, and the vast federal bureaucracy that will actually be responsible for formulating and implementing decisions in his name.

Credit control will be much more intrusive in future

January 26, 2009

John Kemp Great Debate– John Kemp is a Reuters columnist. The views expressed are his own –

The international system of bank regulation, epitomised by the Basle II process and the light-touch principles-based regulation of Britain’s Financial Services Authority (FSA) has comprehensively failed.

A new direction in global financial regulation

January 26, 2009

John Kemp Great Debate– John Kemp is a Reuters columnist.  The views expressed are his own –

UK Prime Minister Gordon Brown’s call today for a new G20 charter of principles on financial regulation  reflects an emerging consensus among policymakers that, once the immediate crisis has passed, the regulatory framework must be fundamentally redesigned.

Do we need a credit policy?

January 22, 2009

John Kemp Great Debate– John Kemp is a Reuters columnist.  The views expressed are his own –

The last eighteen months have witnessed a revolution in financial regulation — if by that we mean a fundamental reconstruction, total change or turn round from the previous orthodoxy occurring in a relatively compressed time.

U.S. and UK on brink of debt disaster

January 20, 2009

John Kemp Great Debate-- John Kemp is a Reuters columnist. The opinions expressed are his own. –

The United States and the United Kingdom stand on the brink of the largest debt crisis in history.

Global imbalances and the Triffin dilemma

January 13, 2009

John Kemp Great Debate– John Kemp is a Reuters columnist. The opinions expressed are his own –

For the world monetary system, the financial crisis which erupted in the summer of 2007 is a cataclysmic shift that will prove every bit as significant as the outbreak of the First World War (which heralded sterling’s demise as a reserve currency) and the suspension of gold convertibility in 1971 (which marked the end of bullion’s monetary role).

Downturn hits China’s manufacturing heartland

January 12, 2009

John Kemp Great Debate– John Kemp is a Reuters columnist. The views expressed are his own –

The global slowdown is hitting China’s modern manufacturing base in Guangdong province especially hard. Deputy governor Huang Longyun on Thursday warned a news conference “the situation is grim” and the manufacturing hub around Pearl River Delta is bearing the brunt of China’s slowdown.