This post explains why the BoJ's latest move is a tightening of monetary policy.
Quick post here. Earlier today, I sent out a note about the Bank of England's rate hike basically saying a large part of it was about the urge to normalize. When I wrote that I hadn't seen Gavyn Davies' most recent missive on central banks.…
Top stories on the persistence of the US economy, the impact of tariffs and the trade war and crisis in Turkey
The timing of the BoE's rate hike decision is poor - almost on par with the ECB's summer of 2011 hike during the sovereign debt crisis.
The way to think of a flattening yield curve is as a signal that the market expects Fed tightening to precipitate a slowdown that halts or even reverses future hikes. It's the market's way of saying they expect the Fed to tighten and then…
When I heard about what happened to the private equity company Abraaj Group, based in Dubai, I immediately thought back to Dubai World nine years ago.
The sense I get is that Powell is a closet Taylor Rule devotee. If I'm right, then the neutral rate is quite a bit higher than where we are now.
These are conflicting narratives, yes. But they don't have to be because, as Minsky quipped, stability breeds instability.