Category Archives: Monetary Policy

The Broken Bond Market

The Fed tightens on Wednesday and bonds rally.  What the hay? GaveKal, Jeff Gundlach,  and Jim Bianco nailed it in that every spec and their mother are/were short 10-year Treasuries. Source: Quandl (see here for interactive chart) But this is … Continue reading

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COTD: The Monetary Transmission Mechanism

On  FOMC eve we thought you’d find the following chart from the IMF’s Global Financial Stability Report useful. The traditional discussion of monetary policy transmission emphasizes how changes in interest rates affect investment and consumption decisions.  These channels operate through … Continue reading

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U.S. Banks Primed And Ready To Roll – Expect the Unexpected

We’ve been busy crunching numbers on the consolidated balance sheet of U.S.-chartered depository institutions and comparing their mix of assets relative to their pre-crisis levels. The large U.S. banks begin reporting earnings on Friday. The Coming Credit Led Expansion Our … Continue reading

Posted in Economics, Monetary Policy, Uncategorized | Tagged , , , | 2 Comments

Mr. “King Dollar” Takes The CEA

Congrats to Larry Kudlow,  a good guy (though a supply side ideologue),  as reports pour in that President-elect Trump will appoint him to head up the Council of Economic Advisors (CEA). He has always advocated a strong dollar, or “King … Continue reading

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Rethinking the Global Monetary System – LSE (MUST VIEW)

Published on May 10, 2016 Date: Tuesday 10 May 2016 Time: 10-11.30am Venue: Old Theatre, Old Building Speaker: Dr Raghuram Rajan Chair: Professor Erik Berglof The global financial crisis has shaken up the international financial architecture. Regulatory changes and unconventional … Continue reading

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Expectations of Fed rate rise drop – FT

US payroll numbers suggested that the unemployment rate tick up slightly from 4.9 to 5.0 per cent, while payrolls gained only 160,000 in April, the lowest in seven months. John Authers explains the implications on a possible Fed rate rise. … Continue reading

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Looser policy but a stronger euro – FT

The European Central Bank has sent bond yields tumbling through its attempts to stimulate the eurozone economy. Dan McCrum explains why, compared with the US, policy is not as loose as it may seem, and how the euro could strengthen … Continue reading

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The constraints on cheap money – FT

John Authers explains a sharp sell-off in bank stocks and one-sided foreign exchange trading as the Japanese yen rises. For more video content from the Financial Times, visit http://www.FT.com/video (click here if video is not observable)  

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Money flows again to the US – FT

John Authers reports on how easier monetary policy from China helped drive a further rebound in world stock markets. The biggest beneficiary seems to be the US. For more video content from the Financial Times, visit http://www.FT.com/video (click here if … Continue reading

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Wolf’s Fed Verdict – FT

The Federal Reserve’s decision not to raise rates sparked a negative reaction from stock markets, and complaints from investors. Martin Wolf, in conversation with John Authers, defends the Fed’s decision. For more video content from the Financial Times, visit http://www.FT.com/videoContinue reading

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