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Fed's chairwoman Janet Yellen

World economy 26th February 2015

Janet Yellen may soon run out of patience

MADRID | February 26, 2015 | By JP Marín Arrese | The FED is back in business after years of loose monetary policy aimed at redressing an ailing economy. With the business climate markedly improving, the time is ripe to raise rates. Yet, Janet Yellen has repeatedly warned against a swift hike, instead emphasising the need for patience until the upward trend is solidly anchored. In her testimony before the Senate Committee, she noted that policy would only cover the next two FOMC meetings, sparking speculation that the move could well start in June. 

tipos interes recursoTC

World economy 24th February 2015

Poland never really understood why it didn’t crash in 2008

SAO PAULO | February 24, 2015 | By Marcus Nunes via Historinhas | It took three years, but in late 2011 Poland finally botched up and went the way of the majority of countries, letting NGDP fall way below trend. They didn’t (correctly) react to the 2007-08 oil price rise, like the US, UK, EZ, etc. and fared well, but didn’t resist when oil prices picked up again in 2010-11, when, among the initial group, only the ECB was dumb enough to react.

China Silk Road 02

World economy 11th February 2015

‘One belt, one road’ and how China aims to lead trade between Asia and Europe

Iris Mir | China aims to recover the ancient Silk Road to create an unprecedented trade link between Asia and Europe. Least developed Chinese provinces would also benefit largely from the ‘one belt, one road’ project as Beijing will need to invest greatly in infrastructure and high-speed railways. Local governments see the project as a golden opportunity to revive stagnating growth.

139 andrew platform north sea

World economy 4th February 2015

BP difficulties a sign of the times for oil companies?

MADRID | By Ana Lopez Varela | Cutbacks and balance sheet losses at the British oil giant are indicative of a more widespread malaise afflicting the oil industry. While there has been a correction in profit forecasts, firms are likely to adjust their business model accordingly.

inflationword

World economy 3rd February 2015

“Austerity, not lack of liquidity, is what is causing the Eurozone depression”

MADRID | By Ana Fuentes | She believes that central banks should act coordinately, since competition between them can cause currency distortions. British economist and former banker Frances Coppola has been one of the main critics of the European Central Bank’s QE “because it supports asset prices, but that is all it does.” She spoke to The Corner about shadow banking and how financials should be accepting and managing risk on both sides of the Atlantic.

No Picture

World economy 21st January 2015

Deflation: Economists sink into dementia

Guest post by Benjamin Cole via Historinhas | What to make of the recent dust-up around Rogoff World, in which the U.S. would pursue a cashless, deflationary federal police state characterized by negative interest rates? Harvard don Ken Rogoff has suggested this is the best macroeconomic option going forward. My take-away? The economics profession is deep into dementia.