monetary policy

Monetary policy: the dam might leak

MADRID | By J.P. Marín Arrese | Christine Lagarde’s stern warning on potential problems ahead for emerging countries has been delivered in rather a blunt way: “even with the best of efforts the dam might leak”. At the annual Fed gathering in Wyoming she claimed “further lines of defence” were needed to address a financial crisis. The hike in interest rates following the prospect of a progressive tapering in asset purchases by the US, has induced a sharp reversal in fund flows between developed and emerging markets.

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Monetary policy for depression

SAO PAULO | By Marcus Nunes | Friedman was right to claim how easy it would have been to avoid the depression, given how easy it was to turn the economy around. Today, on the other hand, we are content with remaining ‘depressed’.

Is Mario Draghi bothered?

MADRID | By Luis Arroyo | Monetary policies are a by-product of politics, after all, and in Europe, politics are tightly controlled from Berlin, which will probably use the Fed’s reaction as example of what the ECB must do.

Monetary policy of the future

BARCELONA | By CaixaBank research | Compared with its pre-crisis size, the balance sheet of the Federal Reserve in the US has tripled while the European Central Bank’s has only doubled.

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Bernanke 1, Draghi 0

By Luis Arroyo, in Madrid | The US economy is on its way up to the growth heaven while others, like Europe, live under the…

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That Lagarde’s speech [video]

Christine Lagarde, the International Monetary Fund’s managing director, was talking on Tuesday in Berlin about the obvious economic challenges in 2012, and a possible policy path…