World economy

central banks' new currency war

Do The Central Banks Determine Interest Rates?

I believe central banks don’t control long-term rates – which are decisive for investment – and that they can influence them in what we would call normal circumstances, namely when GDP is expanding and inflation is at its optimum level. The central bank trys to control the private market’s expectations, but it doesn’t always succeed.

China and Japan's debt

China And Japan’s (Disappearing) Debt Problems

Benjamin Cole | The econosphere is again rumbling about Chinese debt and China banks, evidently forgetting the long serious faces made many times about Chinese debt and China banks in the recent past. But China keeps growing. Japan is another story that defies Western orthodox macroeconomics.

Fed's vs ECB's rates increase

Fed vs ECB: Rates Gradually Rising In US As Markets Increase Them In The EU

J. L. M. Campuzano (Spanish Banking Association) | The Fed raised rates yesterday, basically reducing the expansive nature of monetary policy. After listening to ECB board member Praet’s at a G20 meeting, it doesn’t look as if the ECB will raise rates quickly. But conditions could present themselves which favour a change in bias in monetary policy.

economic challenges

Beijing, Washington Face Similar Economic Challenges

Yukon Huang via Caixin | China’s economic success over the past several decades coupled with America’s struggles to rebuild its economic base since the global financial crisis has spurred a debate about the relative roles for the state and market in guiding each country’s particular form of capitalism.

Make in India program

It’s Time to Make in India

The Make in India campaign is an attempt to encourage foreign investment and manufacturing in the country in sectors such as aviation, automotive, steel and defense. Modi’s India finally seems to be walking toward a future where the traditional reliance on red-tape and high-level bureaucracy is fading in the minds of foreign investors.

productivity, hours per work

Productivity Is Both Obvious And A Mystery

James Alexander | Productivity is much talked about but very little understood. Of course, it can be very simply stated as amount produced per hour worked, but amount produced is not easy to calculate.

Secular stagnation

What’s happened to the Secular Stagnation thesis?

As the global outlook improves, many people ask what’s happened to Larry Summer’s hypothesis of Secular Stagnation, which says there are clear signs that the economic world has been “cooling down” for decades. And currently, everything seems to make us think that the recovery we have on our doorstep is not going to be strong or long-lasting.