France’s downturn is more significant than you think

April 5, 2013

The huge downturn in French businesses was by far the most disappointing aspect of this week’s euro zone PMIs, which again painted a dismal picture of the euro zone economy.

Goal line on jobs still a long way off: former Fed economist Stockton

April 1, 2013

The Great Recession set the U.S. labor market so far back that there is still a long way to go before policymakers can claim victory and point to a true return to healthy conditions, a top former Fed economist said. The U.S. economy remains around 3 million jobs short of its pre-recession levels, and that’s without accounting for population growth.

Investors call for interest rate hike in Brazil

March 21, 2013

Two analyses published this week highlight how alarmed investors are about inflation in Brazil.

Is Slovenia the next shoe to drop?

March 21, 2013

The Cypriot saga has thrown the spotlight on Slovenia, which is also a small euro zone country struggling with an over-burdened banking sector.

Rip-off Britain on the line

March 13, 2013

For all the talk about imported inflation in the UK as policymakers talk down the pound and financial markets merrily give it a good beating, here’s a stark reminder that a lot of British inflation remains home-grown.

Another U.S. debt ceiling showdown could roil markets: NY Fed paper

March 7, 2013

After two days of testimony from Federal Reserve Chairman last week in which he decisively criticized Congress’ decision to slash spending arbitrarily in the middle of a fragile economic recovery, a report on money market funds from the New York Fed nails home the point.

Bernanke: The quickest way to raise rates is to keep them low

March 5, 2013

That’s not a typo in the headline. In a recent speech that took some mental gymnastics to absorb, Federal Reserve Chairman Bernanke countered critics of his low rates policy by arguing that a loose monetary policy is the best way to ensure rates can rise to more normal levels.

Hey brother, can you spare a coupon?

February 28, 2013

Remember those green shoots? Ever since Fed Chairman Ben Bernanke uttered those words in response to the first signs of recovery from the Great Recession in 2009, many forecasters – including Fed officials – have consistently overestimated the economy’s strength.

Bullard weighs in on his colleague’s challenge to the ‘Bernanke doctrine’

February 26, 2013

Earlier this month, Fed Governor Jeremy Stein made waves that are still rippling with a speech on the risks of credit bubbles. The policymaker said that the U.S. central bank could use interest rates, as opposed to the more conventional tool of regulation, to cool overheating in junk bonds and other markets.

Self-inflicted ‘sudden stop’? Brazil blocked by its own currency war trench

February 25, 2013

In times of currency wars, it’s best not to shoot yourself in the foot. By imposing several capital controls in the past years, Brazil might have tightened monetary policy right when the economy started to falter, Nomura’s strategist Tony Volpon wrote in a research note on Friday.