Category Archives: Monetary Policy

Eurozone inflation falls for third straight month

Posted on April 3, 2013 by

Will this give Super Mario enough to cut rates?   The consensus is no.    Remember, ECB does not have the same full employment mandate as the Fed. (click here if video is not observable)

Posted in ECB, Monetary Policy | Tagged , , | Leave a comment

Weekend Lecture: Economics of Abenomics

Posted on March 1, 2013 by

The Peterson Institute held a high-level discussion of the economic policy initiatives of Japan’s new government, or Abenomics, on February 15, 2013. This timely event took place just ahead of Prime Minister Abe’s upcoming summit meeting with President Obama. The … Continue reading →

Posted in Fiscal Policy, Japan, Monetary Policy | Tagged , , , , , | Leave a comment

Stanley Fischer to Replace Bernanke?

Posted on February 18, 2013 by

The Washington Post thinks it is a possibility. Dylan Matthews’ excellent piece – run don’t walk to read — speculates on the  former:  1) MIT/University of Chicago professor;  2)  Ben Bernanke Ph.D. adviser;  2)  World Bank chief economist;  3)  IMF … Continue reading →

Posted in Economics, Monetary Policy | Tagged , , , | 1 Comment

Beggar Thy Neighbor’s Stock Market

Posted on February 17, 2013 by

Interesting chart which we suspected and all knew that, thus far, the 2013 macro equity trade x/ U.S. has been to be long those markets where the home currency is weakening against the dollar.  The red regression line illustrates this … Continue reading →

Posted in Equities, Monetary Policy | Tagged , , , , , | 2 Comments

Euro slumps on ECB Draghi’s comments

Posted on February 7, 2013 by

“Exchange rate is not a policy target, but it is important for growth…”   – Mario Draghi (click here if video is not observable)

Posted in Euro, Monetary Policy | Tagged , , , | 4 Comments

The Fed and Credit Rationing

Posted on January 30, 2013 by

John Taylor’s piece in the WSJ yesterday noted, So if investors are told by the Fed that the short-term rate is going to be close to zero in the future, then they will bid down the yield on the long-term … Continue reading →

Posted in Interest Rates, Monetary Policy | Tagged , | Leave a comment

Federal Reserve Assets Top $3 Trillion

Posted on January 24, 2013 by

The Fed’s balance sheet just topped $3 trillion for the first time ever according to the Wall Street Journal, The U.S. Federal Reserve‘s balance sheet topped $3 trillion for the first time as the central bank continued with its easy-money … Continue reading →

Posted in Monetary Policy | Tagged , , , | 4 Comments

Most Overbought and Oversold Markets

Posted on January 13, 2013 by

Asia x/Japan equities began to to work off overbought conditions. Japan’s Nikkei continues to reprice higher on weaker yen. Italy’s MIB and Spain’s IBEX experiencing the “positive contagion“  from Eurozone sovereign spread compression and now approaching an 80 RSI. Profit … Continue reading →

Posted in Monetary Policy, Technical Analysis | Tagged , , , | 2 Comments

Would A Trader Buy This Chart?

Posted on January 10, 2013 by

Note the bottoming of the M1 money multiplier after its long secular decline.  The multiplier is effectively the ratio of money created by the banking system (deposits) vs. money created by the central bank (reserves). It collapsed and fell to … Continue reading →

Posted in Monetary Policy | Tagged , | 4 Comments

Tweet of the Day: Slouching Toward Weimar

Posted on January 7, 2013 by

Clay Aiken, U.S. musician and American Idol, tweets: The meme is now in the popular culture.   Troubling.

Posted in Monetary Policy | 11 Comments