Welcome, Mr Tapering!

We can find a wonderful selection of charts in Robin Harding’s article at Financial Times, which explain the reasons for gradually dropping the QE. I’ll include some of them:

1. In the chart below, we find the employment rise (red) and the voluntary job cessation, which are a clear evidence of the improvement in the expectations of finding a new job.

Tapering - The employment rise (red) and the voluntary job cessation

Tapering – The employment rise (red) and the voluntary job cessation

2. For their part, the ISM manufacturing and ISM services are both at very ample levels (far above 40).

Tapering - ISM manufacturing and ISM services

Tapering – ISM manufacturing and ISM services

3. Thirdly, there is the strength that housing and land markets (and their price) are gathering. In this case, levels are yet way below those before the economic crisis.

Tapering - Housing and land markets

Tapering – Housing and land markets

 

4. And finally, the following chart includes several consumer price indexes, which illustrate the awful hyperinflation caused by Mr. Bernanke (according to “austerity fanatics”).

Tapering - Consumer price index

Tapering – Consumer price index

With such low inflation rates, why shouldn’t we expect a restriction of the monetary facilities? Tea partisans’ pressure is savage. If a little hidden bubble goes unnoticed, it will damage Bernanke’s pedestal for history records. Before retirement, he (logically) wants to finish his job with all the honours. But, (also logically) he will do it with great caution, so as not to spoil the increasingly better perspectives.

About the Author

Miguel Navascués
Miguel Navascués has worked as an economist at the Bank of Spain for 30 years, and focuses on international and monetary economics. He blogs in Spanish at: http://http://www.miguelnavascues.com/

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