In a world where market signals are confused, central banks – extremely dependent on macroeconomic indicators, reforms, savings and investments with their own capital – are left on the back burner, and economies are so fragile in the face of unpredictable events, it is interesting to go back to basics and analyze through the eyes of economic laws and …
More »What could the sell-off in US debt from China and other emerging markets be a sign of?
Record sales of US government securities by central banks around the world. The Chinese central bank is selling massively from its foreign exchange reserves, the Russian, Brazilian, Taiwanese — too. Although China is still the leader in holdings of US government securities for 1.4 trillion, it has thinned them by 200 billion dollars since August. The net …
More »Will the Fed start a new financial crisis?
As September approaches, market participants are increasingly anxiously awaiting the Federal Reserve's (FED) decision on the key interest rate in the United States. Will the world's most influential central bank raise the key interest rate, which has been in the range of 0.0-0.25% since late 2008? How will this affect …
More »Should we expect a tightening of monetary policy in the US soon?
Several years after the start of the financial crisis and the subsequent launch of the quantitative easing program, politicians and central bankers reported a positive change in the values of some economic indicators, reading this as a signal of an improvement in the general situation of the economy and the labor market. In order to achieve some of the desired …
More »The dreaded deflation
In early January, Eurostat data was released showing the first annual deflationary episode in the Eurozone since 2009 – the overall price level fell by 0.2% between December 2013 and the same month in 2014. This sent the European Central Bank and a large number of Keynesian economists into a panic. From …
More »Are emerging markets facing a currency crisis?
This year is shaping up to be a very interesting one for global financial markets, but unlike the previous five, which focused on developed economies and their debt problems, attention is now shifting to the East. It's not that the West has managed to overcome its problems and is now confidently...
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EKIP– Expert Club for Economics and Politics A Different Opinion