US shutdown will force Fed to change its plans
MADRID | By Francisco López | The change in the Fed’s plans regarding the withdrawal of monetary stimulus is another consequence of the political row between Democrats and Republicans.
In the World
Sad reality…
MADRID | By Álex García and @senoritapuri
Do we really have a better understanding of the dynamics of inflation & business cycles?
SAO PAULO | By Marcus Nunes | Simon Wren-Lewis concludes considers that we now understand more about the dynamics of inflation and business cycles and so monetary policy is better. “And so monetary policy is better”, but… is it really?
U.S. Debt Ceiling: What if There is No Deal?
THE CORNER | Negotiations over a Senate plan to reopen the U.S. government and extend the debt ceiling were placed on hold, then renewed on Tuesday evening. Rhetoric and accusations between republicans and democrats are intensifying, as the fateful day approaches. Will the U.S. default on its obligations?
Political reality ignores Nobel winner’s wisdom
WASHINGTON | By Pablo Pardo | Robert Schiller has always been an advocate of a moderate government intervention in financial markets. He also criticised the Federal Reserve’s Quantitative Easing (QE) because he considered that asset prices are not among the areas of central banks. However, political reality seems to go in the opposite direction of the new Nobel winner.
Ungovernable America
SHANGHAI | By Andy Xie via Caixin | A minority enraged at another expansion of the U.S. government will eventually cause a default, ending the dollar’s dominance and making gold dearer.
Is Yellen ‘hot’ or ‘cold’, ‘hawk’ or ‘dove’?
SAO PAULO | By Marcus Nunes | The fact that Ms Yellen is a dove today does not imply that she would tolerate rising inflation tomorrow. She will need to persuade the markets, and the public, of that in the coming weeks.
Three Trends Changing Our World
MERRILL LYNCH | Powerful global trends — economic, political, environmental and social — are reshaping our lives and creating new investing opportunities as well as unanticipated risks.
China: Success Depends on Protection of Intellectual Property (Credit Suisse)
THE CORNER | As China moves towards consumer-based growth, the key to unlocking its economic potential lies in raising productivity. But until it protects intellectual property rights, it will face an uphill battle, says Dong Tao, Chief Regional Economist, non-Japan Asia at Credit Suisse.
What are Conservative Experts Saying About Breaking Through the U.S. Debt Ceiling?
WASHINGTON | By Mike Konczal via The Next New Deal | There was a fantastic piece in The Atlantic back in 2000 about psychiatrists dealing with people who wanted to have their limbs cut off because it would make them feel more like themselves to be amputees. The doctors’ big dilemma was whether or not to treat “apotemnophilia” as a diagnosable mental illness. If they engaged with it as a mental illness that existed and was recognized by the medical community, they ran the risk of encouraging more patients to identify with it.