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Interest rate moves are out of sync with inflation, what next?

LONDON | By Michael Gavin at Barclays | The 2013 sell-off in interest rates in the global currency areas has been driven entirely by perceptions that economic activity is on course to continue its recovery; inflationary pressures have been conspicuous only for their absence in all major currency areas except Japan, where the (still limited) pressure is welcome. This likely explains why equity markets in the advanced economies were so resilient to the backup in US and global rates and why the brunt of the 2013 bond sell-off was borne largely by the long end of the curve.

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How to call fear of bubbles? Paranoia maybe?

MADRID | By Luis Arroyo | The shadow of deflation looming over the euro zone economy have seemingly gone away on Friday. The statistical office Eurostat anticipated an estimated 0.9% yearly inflation rate, two percentual points under last October registers. However, being afraid of deflation is not a nonsense because next banking recapitalisation points that credit is to tighten.

interest rates

Central banks’ tightening: Learning to live without $33 trillion

WASHINGTON | By Pablo Pardo | The party is about to end. It is a party that has lasted six years. According to Bank of America/Merrill Lynch, during that time, the approximately 173 central banks that exist worldwide have lowered interest rates 520 times and pumped in approximately $33 trillion into the world through different mechanisms, some of them extremely unconventional.

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Talking about interest rates

While emerging countries moderate interest rates to keep their currencies favouring exports and economic activity, the euro is appreciating. Does it makes sense?


The underwater America

NEW YORK | One of the current most visited exhibits at the Museum of Modern Art in New York is not dedicated to pop-art nor…